Giving the keys back - advice needed

[heidi1974]

thank you, we are trying to save as much as possable but i have now just had a gas and electric bill for £430.00 could i put this on the bankruptcy ?? also will this affect us when we move house for gas and electric ??. our mortgage will be in default at the end of this month, so we want to do the bankruptcy before or just after this so that way the house goes with the BR.

[heidi1974]

im trying to deal with everything at the moment, so its less stress for my husband as he has high blood presure, and gets really bad chest pains if it gets to high. so the more i try and sort out the better for all of us. i am so greatful all the help i get on here, i could not do it without all the advice i get from your site. if i ever win the lottery i will come on here and donate.

[luckythirteen]

I have found some rental companys do not do credit check but work references. We have found a small house that said as long as we are employed full time thats all they need! I also got a copy of our credit report and mine was quite good..??? So if your looking at private renting, i would call or email the rental companys (go to right move and you can email all the rental companys on there and advice of your situation). I had a few replys advising they would work around my bad debt problems, and some companies are very good.

Fingers cross we get the house we want!

[lic2009]

Can anyone cut and paste a template or link to the wording used to notify the mort. company that I am handing keys back. Also I read that this should be printed and not signed.....

 

Thanks.

[lic2009]

What happens about the council tax payments when I hand the keys back?

[JNJL]

Just from the advice i have read i think you are still responsible for the buildings insurance and council tax until house gets sold either way. We have now moved out of our house and into rented and when we phoned the council they said we can have 6 months exemption from paying the council tax as the property is vacant?

 

Heidi1974 - We were honest to the lettings agent about our bad credit and we were really lucky to find a nice man who helped us find somewhere as he knows his landlords well he knew which ones wouldn't mind as long as the rent is payed. Smaller lettings companies seem to be better for this as bigger ones either want a guarantor or 6 months rent in advance!!

 

We have found an absolutely beautiful place to rent, being away from our old house really helps to deal with the situation, though it is still there and empty whilst we wait for the mortgage company to do their business. Only problem is took all forms in to council for housing benefit, they said it will take at least 10wks to sort out, i said how are we supposed to pay rent in the mean time we already had to borrow 2nd months rent off family as it cleared us out to pay deposit and first months rent up front - they said theres nothing they can do!!!!!!!!!!!!!!!!

 

Agree courts should do joint bankruptcy - it is bad enough trying to fill these forms in once let alone twice when all info is nearly the same. Still can't decide whether to use Debt Release direct to do it, they will charge us £1500 for both of us to go bankrupt, they fill in all forms and send to court and pay court fees out of that - can anyone give any advice on this and also how to paste parts of peoples posts on here???

 

I also don't know what we would have done without the advice on here, we would never have had the confidence to walk away from our house and face going bankrupt?

[lic2009]

I spoke to Barclays who provide my insurance and they said once you hand keys back it's the mortgage company's responsibility to insure property..... (just wanted some more examples.....)

 

*Great advice on these forums*

[luckythirteen]

Thats great about the house insurance... and that you got a 6 months exempt from your council tax, i wonder if that depends on what district you live in..? or do they all do that, as to honest i never thought about council tax!

we finally got somewhere, we got offered a few places to our surprise but typically my husband choice the house with the big letting company who were adamant we needed credit checks ect! we somehow passed with flying colour's and we move in 26th May! So we are very happy as its big enough to have a family in!

When u file for bankruptcy, they ask u where you have lived for most of the time, as to where ur debts are registered.. as we are moving to a different county, would we still have to do it here or at our new area?

Do we have to tell any of our debtors are new address?

 

Its great to see light at the end of the tunnel, and when the bankruptcy goes through i can finally relax!

 

With the regards to the comment above about the company who fills in the forms, i wouldnt use them as the forms are not that bad (okay i know it did take me a while to do them) but if u have probs the CCCs are great and why spend more money than you have too, save the extra money you would spend and have a wee holiday! I know i will when this is over!

[lic2009]

I'd really appreciate some wording on what to write to Mort. Co. re: handing keys back if someone can help - Thank you.

[luckythirteen]

Yeah, i would like some advice on this aswell, help would for appreciated if anyone can help!?

[dw190]

Thats great about the house insurance... and that you got a 6 months exempt from your council tax, i wonder if that depends on what district you live in..? or do they all do that, as to honest i never thought about council tax!

 

Once you move out of the house the owner is liable for the council tax.

 

Just tell the Council you are moving out and give them the address you are moving to.

 

The last house I was involved in renovating with was exempt from Council Tax and empty property Rates because the Kitchen Sink, Bath, Basin & Toilet had been removed deeming the property inhabitable.

[lic2009]

Once you move out of the house the owner is liable for the council tax.

 

Just tell the Council you are moving out and give them the address you are moving to.

 

The last house I was involved in renovating with was exempt from Council Tax and empty property Rates because the Kitchen Sink, Bath, Basin & Toilet had been removed deeming the property inhabitable.

 

Thanks.

[lic2009]

Any guidelines/links for wording of a letter to Mortgage Company? I want to return my keys with a letter 'but have read you shouldn't sign the letter'. Any more advice welcome.......

[JNJL]

Our mortgage company have just passed our account to their solicitors so we are at the start of them repossessing our house (which is what we want) we have also had our house on the market since jan. We have had a few offers but they are way below the asking price and what we owe on the mortgage - should the mortgage company accept this offer as i'm sure if they repossess it they will sell it for a ridiculous price anyway? It doesn't really matter that much to us as we will be going bankrupt as soon as we have the money but its just that pride thing kicking in again???

 

We just want the whole thing over and done with as quick as possible so does anybody know what is the quickest route, ie sending the keys back, waiting for them to repossess or selling (if we can secure a sale)

[lic2009]

I'm planning on going bankrupt should I return the keys to the mortgage company or leave it to the Official Receiver?

 

JNJL - hope all goes well for you, hang in there!

[JNJL]

You to lic2009 let me know how you get on? we want to know the same thing, is Gizmo111 around anywhere?

[JNJL]

Can anyone offer any advice. We have been waiting for the mortgage company to repossess our house, its on the market and we just had an offer for about £40000 under the asking price. We have asked the mortgage company if they will accept that or what figure they will accept and they have told us we need to complete a proposed shortfall sale form?

 

At the end of the letter it states that we will need to sign a deed of acknowledgement of debt which is a legally binding contract stipulating the terms of the agreement for the repayment of the shortfall.

 

We are going bankrupt as soon as we can afford to but if we sign this contract will the shortfall still be included in our bankruptcy?

 

Any advice would be great - just want this whole process over as quick as possible!!

[spamheed]

Be very careful about signing such a document, Mortgage shortfalls are tricky enough and the banks are not stupid, they know what you are intending to do, or will have a good idea and as such will attempt to bind you to a contract to repay the shortfall.

 

Look at it objectively and (I know it's not easy) without emotion or principles.

 

The house is no longer yours, you are disowning it, regardless of what you do or don't do the bank will attempt to maximise their return, they will take whatever guarantees them the highest return, it's simply a case of numbers to them.

 

I would reckon that the newly created shortfall agreement would not form part of the BRO

 

From their perspective £100k plus a guarantee from you for the shortfall is no different than £120k and a guarantee from you for the shortfall (figs for demonstration purposes only) you will not benefit in any way whatsoever whichever way the property is disposed of or for what price.

 

Either you would be scalped by a developer or similar who picks up the property on the cheap, or you are scalped by the bank who sell the property on the cheap and then attempt to nail you for the shortfall.

 

For what it's worth and it is purely my own opininon, I would walk away without looking back and simply let the bank take the property without a fuss and most of all without any co-operation from yourselves, selling the house prior to BR may be more trouble than it's worth

[lic2009]

Be very careful about signing such a document, Mortgage shortfalls are tricky enough and the banks are not stupid, they know what you are intending to do, or will have a good idea and as such will attempt to bind you to a contract to repay the shortfall.

 

Look at it objectively and (I know it's not easy) without emotion or principles.

 

The house is no longer yours, you are disowning it, regardless of what you do or don't do the bank will attempt to maximise their return, they will take whatever guarantees them the highest return, it's simply a case of numbers to them.

 

I would reckon that the newly created shortfall agreement would not form part of the BRO

 

From their perspective £100k plus a guarantee from you for the shortfall is no different than £120k and a guarantee from you for the shortfall (figs for demonstration purposes only) you will not benefit in any way whatsoever whichever way the property is disposed of or for what price.

 

Either you would be scalped by a developer or similar who picks up the property on the cheap, or you are scalped by the bank who sell the property on the cheap and then attempt to nail you for the shortfall.

 

For what it's worth and it is purely my own opininon, I would walk away without looking back and simply let the bank take the property without a fuss and most of all without any co-operation from yourselves, selling the house prior to BR may be more trouble than it's worth

 

So would you not write a letter enclosing keys for return (as in my case), or would you send keys back? - Thanks in advance.

[spamheed]

So would you not write a letter enclosing keys for return (as in my case), or would you send keys back? - Thanks in advance.

 

Sorry if I wasn't clear, just as a note

 

sending in a letter to accompany your keys when you hand them back is essential, explain who you are and why you are returning the keys, you do not need to sign this letter. as previously mentioned you should treat these keys as being extremely valuable and ensure that you obtain proof of posting and delivery, or a receipt if you are handing them in at a local branch. This would be needed should the lender dispute your sending in the keys, or whether they received them or whatever

 

The form I was referring to in the previous post is something completely different. It is basically a guarantee or assurance that you will take responsibility for any shortfall after the sale/discharge of your mortgage. I would imagine that the wording of such an assurance would indemnify any lender against a debtor including the mortgage shortfall in their bankruptcy.

 

Hope this clarifies

[lic2009]

Sorry if I wasn't clear, just as a note

 

sending in a letter to accompany your keys when you hand them back is essential, explain who you are and why you are returning the keys, you do not need to sign this letter. as previously mentioned you should treat these keys as being extremely valuable and ensure that you obtain proof of posting and delivery, or a receipt if you are handing them in at a local branch. This would be needed should the lender dispute your sending in the keys, or whether they received them or whatever

 

The form I was referring to in the previous post is something completely different. It is basically a guarantee or assurance that you will take responsibility for any shortfall after the sale/discharge of your mortgage. I would imagine that the wording of such an assurance would indemnify any lender against a debtor including the mortgage shortfall in their bankruptcy.

 

Hope this clarifies

 

Thanks again.

[JNJL]

Thanks for the advoce spamheed, i thought that might be the case, think its best all round to send the keys back to the mortgage company - does anybody know ho wlong it takes or what happens once you return the keys?

[lic2009]

Thanks for the advoce spamheed, i thought that might be the case, think its best all round to send the keys back to the mortgage company - does anybody know ho wlong it takes or what happens once you return the keys?

 

Can anyone provide a template of a letter and is there anything that should be avoided when typing out a letter. I want to send my keys back but am holding off as I'm unsure on what to write.

 

Good Luck JNJL

[JNJL]

Yes a letter template would be good, i think it will be good psychologically to send the keys back and move on. Good Luck to you to lic2009.

[survivor_13]

Hiya JNJL,

 

We are currently fighting a repossession order on our home and it can be quite daunting, if it wasnt for the guys on the forum we would have given up a long time ago. We are back in court on Monday AM and I sure this will be the fight of our lives as the judge adjourned hearing for lender to submit figures as we found discrepancies with arrears plus charges, so I sure they will be gunning for us.

 

Similarly we have 2 small children and yes we do sometimes feel like giving up however its not over till the fat lady sings and after all it is ur home. I do hope u dont give back keys without a fight. Stay positive and strong, however do whats best for you and your family.

 

Best of luck

Survivor:)