Hiya I'm new!! Just after some general advice really, basically I have split up with my husband and put our house up for sale. Niether of us are living in the house! I am currently looking at renting somewhere until the house is sold as going back there is not really an option! The mortgage is in joint names but currently comes out of my account! Already (not long broke up) my husband is having 'difficulties' paying his half of the bills / mortgage. We bought the house 18 months ago and are tied in till Jan 2009 and face ERC of nearly £5k (GMAC!!!) Due to the current house market climate we have put the house up for less than we bought it for, just to shift it, however with estate agent fees, solicitors and the early repayment charge I fear 'we' will come out at least £10 k in debt! What I fear more is that I will end up with all that debt, plus all the mortgage payments till the house is sold! Starting to think about just letting it get repossessed cos he's not gonna pay his half realistically, and I just want to cut and run. Don't really understand how repossession works, is it worth considering or is it a road I really don't want to go down????

The starting point is that you are, as you are probably aware, both jointly and severally liable for the mortgage. It basically means that if you sell it and there is a shortfall or if it is repossessed and there is a shortfall that the lender can decide whether it pursues one or both of you for the shortfall.

Having a property repossessed does not do your credit rating much good...On a repossession the lender sells the property - they are supposed to sell for market value but the reality is that you repossessed property almost always sells for less than it would if you were still living there. The lender sells it, charges you for selling it - agents fees etc - then deducts the proceeds of sale from the amount outstanding. Any shortfall they would, usually, pursue. The other thing about a repossession is that there are also court costs on top.

One other option might be to hand the property back to the lender. They would still sell it and charge you for the sale and for any shortfall on the amount outstanding but you wouldn't have the court costs neither would there be an adverse CCJ

Some really good info from 'I've got no money'. In addition you could read this information from National Debtline on Mortgage Arrears:

http://www.nationaldebtline.co.uk/england_wales/pdf/self_help_pack/mortgage_arrears.pdf

Once I've digested that, please come bac kto us with any other questions, queries or concerns.

One other option might be to hand the property back to the lender. They would still sell it and charge you for the sale and for any shortfall on the amount outstanding but you wouldn't have the court costs neither would there be an adverse CCJ

Not strictly true.

Voluntary repossession is never a good idea.

Agreed, the lender will do everything that you have said, but it will cost you thousands more than doing it yourself.

Also a VR on your fie is every bit as detrimental as a CCJ.

What happens when i give my house back to the morgage company? -

Point taken - I agree that it is always better for a property to be sold by its' owner rather than the lender in possession - all of my comments about reduced selling prices apply to both voluntary possessions as they do to court ordered.

Hi there, would it not be possible for you to rent the property out until you are out of the tied in period with GMAC or until the market situation improves?

Thanks for your comments, I have spoke to the mortgage company GMAC/ Oakwood homeloans, they will not let me hand the property back and it's not really a case of them chasing us for the money because when the house is sold when we sign all the paper work at the solicitors to enable the sale to go through, if all the money is not there then there would be no sale and as I cant see my husband turning up with any funds i would have to pay! Can't really rent out the property as I would have to change the mortgage for a start and also the house needs a lot of work doing to it and couldnt really afford any maintenance and probably would get the wrong kind of tennants, who were willing to pay rent for a property which needs so much work doing to it! The mortgage company did say they would waive the ERC if I got a mortgage with another lender (which sounds a bit strange) and they are sending me confirmation of this in writing but I am assuming nobody would want to give us a mortgage when the house is up for sale???

GMAC are the pitts you have to fight them at there own game

SO could one of you not go back and live in the house and rent out a room desperate times means desperate mesures both you and your ex are jointly resposible so to avoid adverse credit you need to resolve this together easier said than done I know but try or you will be caught the best thing to be said is you are not alone so many people are in thesme boat if you can come up with a solution even if it is short term it will be better for you

You really don't want to leave the sale of your house to your lenders, it isn't a good idea in a stable market - but in this very slow market you would be sold on for much less than the market value.