Leaving house without a sale?

Question

hello there,im looking for some advice basically.my mortgage company have put our payments up by an extra £350 per month.theres no way in h**l we can afford that and this house has brought us nothin but bad luck,we cant sell it cause theres so much work needs doing it.weve tried selling to those companies who do quick sales also but they have offered us less than what the mortgage is worth.wer thinking of abandoning it and then just letting them reposess it.is it illegal to do this? and what will happen if they find us? any help really would be much appreciated

Answer 1

I assume it's because your current deal has come to an end - this is happening to a lot of people. Many lendeers are allowing borrowers to switch to interest only for a period of time - a freind of ours did this and the payments dropped fromm £830 to £495 per month.  They will only let you do it for a period of time (2 years I think) and there is an admin fee (£25ish) but it could cut your payments dramatically and help you weather the storm.  

Answer 2

Have you had a chat with a Money Advisor at Citizen's Advice Bureau?

Answer 3

It's legal, just ruins your credit.

What you may try, not sure if they do it in England, is talking to the company willing to buy it for less then you owe, and either you or that company approach the bank about forgiving the extra. It's called debt forgiveness, and you would have to pay taxes on the forgiven debt, at least that's how it works here in the US. Won't hurt to ask.

Answer 4

If you actually want them to repossess it, your best bet is to stick around, cos at least that way you get homeless accommodation. If you just run off, you may not receive any help when you need it most.

Answer 5

DON'T DO IT!!!!  It may seem as if you are in a hopeless situation but if you are willing to work with you mortgage provider to reach a solution this is far better than walking away.  I appreciate that your mortgage payments have substantially increased but it is not the end of the world yet.  You may be able to re-mortgage on a more affordable payback scheme with a different provider.  Granted, the house may be in negative equity AT THE MOMENT, but the credit crunch will not last forever, if you are willing to hang on for a few years it will turn around - have a look at the history of house prices going back to WW2 and you will see the dips and highs that have taken place, we are in a dip at the moment but it will recover.  You must get proper financial advice on this as soon as possible.  You must not take the advice of random strangers on the internet on an investment of this nature.  You should approach a mortgage adviser very soon, these people should not charge you either as their commission is covered by the mortgage provider for introducing new business to them so this should be cost free.  Also, as a previous poster advised, get in touch with CAB, they can provide you with practical financial advice to help you.  There is a way to deal with this without the desperate measures you propose!

Answer 6

You will not get homeless accommodation as you will have intentionally made yourselves homeless .