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Giving the keys back - advice needed


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Good for you Survivor, we reached a point in February i think after lots of advice on here and then we spoke to the national debtline who gave us a bit of a wake up call and told us we couldnt afford our house with all of our debts, we need to find somewhere to rent, send the keys back and declare ourselves bankrupt. It came as a massive shock at the time but after much soul searching we knew it was the right thing to do and we had no way of ever getting out of all the mess. So we have now found somewhere to rent which is way bigger and more beautiful then we could ever afford to buy and is much cheaper a month and it feels like it was meant to be. We are now saving to go bankrupt and it is still upsetting to go back to the old house but we feel we can deal with it better now we are away from it. Still a big climb to go to get through bankrupcy and sorting house out etc but your health and happiness has got to be worth more!

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For what it's worth and it is purely my own opinion, 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

 

 

Again, just for clarification, the above advice is offered on the assumption that the decision to go BR has already been made by the OP, I would not be so bold to make such a recommendation. a Choice like this is a very personal thing and should only be made after much consideration and only then when there is little else available by way of an option.

 

Just to reiterate BR would effectively wipe out your debts, as such the bank and mopst other creditors would lose out, as such don't expect them to be completely understanding and sympathetic to your plight. Their sole purpose is to make money and your BR would be in direct opposition to this purpose and they will do whatever they can to ensure that they do not lose out.

 

The only people who solely have your best interests at heart are yourselves and your loved ones and these are the only people who should be involved in such a decision, that is why my recommendation (after the fact) would be to allow them to repossess your property without contest prior to becoming BR and then follow the excellent advice on rehousing etc.

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Just looking at a few posts on here.

 

I wouldn't personally advise anyone just to hand back the keys before either the OR instructs a sale or the house is repossessed.

 

With private rental just be aware that if you have to claim housing benefit it will be treated much the same as council housing. The house has to be what you would be entitled to via the council and the rent has to be on comparison for the area.

 

I was listenening to R4 (yes sad!) but a call was made by someone, with 2 opposite sex children under 10, that had rented a 3 bed. house but the housing benefit would only cover a 2 bed. as that is what they would have been entitled to under council housing rules. It makes sense if it stops people from renting MUCH larger properties but when it's screamingly obvious that a 3 bed is going to be needed very shortly then it's bonkers!

 

Obviously one of the ways you could appeal is that you had to stay in the area (schooling, relatives, work, disability) and the only property available was a 3 bed. at the time which was more affordable than say a new build 2. bed flat. Perhaps it would be good idea to keep details of available lettings, rental rates etc. at the time you were forced to move out just in case you do have a problem with a housing benefit shortfall plus the amount of agents that refused you because you have a CCJ/ mortgage arrears or are BR.

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Hello All,

We went to go bankrupt last month but missed the appointment due to a police man telling us the wrong way, by the time we got there it was to late. so we have got to go on the 27 may.

We are in the middle of having our house repo due to my husband not working. we have phone calls after phone calls from the mortgage company asking us to pay, how do they accept you to pay when my husband does not have any money from benefit and i work part time, i have £347.00 a month and £46.00 tax credit a week, they have said you are allowed £101.00 a week to live on, and my wages cover that with my tax credit, but by the time i pay £35.00 a week petrol it not even worth me going to work, so i have just handed in my notice.

As for the mortgage i had a man from the mortgage come out to see us a few weeks a go asking us about money comin in and out and said the council will pay for the mortgage for us so why are you not claiming for it, i said i have sin it comin for the last 12 months, we cannot afford to pay £972.00 a month, my husband was on really good money, he will never get that amount again, when i had a right go back at him, he did say we was doing the write thing by going bankrupt and letting the house go. since he sent hes report back the mortgage keep ringing us up asking us to stay in the house pay what we can and sell the house for them as its worth more when the house is lived in, but if the house does not sell within 6 months then they will carry on with the court. As much as we would love to stay here, what is the point, if the house does not sell i will be homeless at christmas, i have a 4 year old and 3 dogs i do not want that, im hoping the council will find us some where to live and be settled by christmas. i am not going to send the form back for us to sell the house for them.

 

the house will have a shortfall, the mortgage we owe is £170,000 by the end of may, thats with redemption of £11,000 and i think the house will sell for around £140,00-£145,000. i have been told you can includ the house in the bankruptcy.

I dont think i want to go private rent due to the rent being around 600.00- 750.00 amonth round here, we would not be able to afford to pay it again when my husband finds a job, i think its a joke how much they try and charge you, if i pay that i might as well stay put. if i rent off the council then its between 90.00-102.00 a week and only 48 weeks a year. iv had a bit of a bad experence with private rent so i am a bit put off.

 

Good Luck to every other person who is going bankrupt.

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Yes just be careful with selling the house for the mortgage company we have just tried to do that, we had an offer for £40000 under the asking price and the mortgage company sent us some shortfall forms to fill in which would be followed by a contract for us to sign making us duty bound to pay back the shortfall even if we go bankrupt - crafty beggars!!!

 

WE have left our house and found somewhere private to rent, just waiting for them to re-possess now, anybody any advice what the procedure is and how long does it take? which is better letting them re-possess or sending keys back?

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thank you for the message, we are not going to sell the house for the mortgage firm, we are going to let it get repossesed, as if the house does not sell, we will be back in the same boat again in 6 months time and it will be around christmas when we will have no where else to go. we are hoping the council will find us some where to live by the time christmas is here.

i have asked the same thing about handing the keys in and they have just said that because we are going bankrupt and have no where else to live, it would be hard to go private rent and the council would not help us in anyway as i have made our selfs homeless. the way i see it is if you have some where else to live hand the keys back that way you will not have so many fees to pay if it got repossessed.

this is only what i have been told.

i hope things work out for you, and all the best of luck.

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Posted my keys back today with a letter to mortgage company, and contacted council who want proof I am sending keys back so that I can be exempt from paying council tax. They also wanted my new address (I asked if this would be given out to anyone she said no.)

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lic2009 - What did you put in letter to mortgage company? Did it make you feel any better? do you know what happens next? did you manage to find somewhere to live?

 

 

Rightly or wrongly I sent this typed out and not signed (I searched and asked about a letter but to no avail...so I sent this by Special Delivery -

 

 

Headed with Mortgage Ref No.

 

Dear Sir/Madame,

 

I am (name) of (address) I can no longer afford to live in this property due to (reason)

Enclosed are all the keys to the property. The house insurance has been cancelled and the Council notified that the keys to the property are being returned. A copy of this letter has been sent to (council).

-----------

I feel better that this part is done but very worred that I am about to enter a storm! I'm scared about attending court and saying/agreeing to something that will financially cripple me for years and years. It's crossed my mind many times to go 'Statute Barred' but I read you have to wait 12 years for mortgage payments to be classed as 'Statute Barred'. I will go bankrupt in 5-6 months once I've saved up the fees and I look forward to a new chapter in my book.

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Yes I know what you mean, we haven't sent keys back yet, not sure what to do for best. We are going bankrupt as well as soon as we can find the money, also dreading the court bit? Debt Release Direct made it sound so easy to send keys back but not sure what the comeback is going to ve, so we will just have to wait and see!

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I've read that it's generally better to attend court (can work to your favour as opposed to not attending.... but that's just generalizing). I was on a DMP with CCCS but was told to stop paying it when I decided to file for BR.

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  • 3 weeks later...

Hi all, i went to court on the 5th June for the repossession of the house, GE Money wanted us out of the house within 28 days, but the duty solicitor got me 48 days, (22 july) but he did say that by the time they get a bailiff order it could be 9 weeks in total.

i was told not to turn up for court but i had spoken to cab and they said it would be best for me to turn up or it would be another week before i had a letter in the post to say when we had to leave the house.

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hi i dont think it really matters, i went bankrupt the 27 may, then repossession on the 5 june. But i do think it will be better to do it after, only because if you want to rent private then they see you have gone bankrupt they will not allow you to rent the property. i have gone with the council, just waiting for them to find me some where to live now. ( plus council is a lot cheaper than private).

there will be people on here who will be able to help you better.

all the best !!!

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  • 2 months later...

Well i moved out of my house in May, to a different area and a much nicer house. We tried to leave our old house in a decent state as was told when trying to sell, how we leave the house can determine how much we get for it.. therefor trying to reduce the shortfall. (Which doesn't make a difference if your going bankrupt i suppose!)

I spoke to the local council who said once our mortgage provider receives the keys, they will get notified by them and we will only have to pay up to that date.

I did receive a large council tax bill, but when i told them the situation, they advised to wait till they hear about the repossession and then they will send us a new revised invoice. Which after a few days was that they owed us money! A whole £50!

We have seen our house up for sale with the same company we had it up for but with £25k less! So our shortfall is now £35k! I know they can get more for it, but they seem to now even want to try and claim some money back for themselves!

when i posted the keys back, i did it recorded del with a note saying my name, the address of the property, my account number and that i couldn't afford the mortgage anymore. I didn't enclose my address, but later gave them it as they sent me some forms, which i signed as advised by the CCCS, (any forms signed before the bankruptcy is fine BUT do not sign anything after as it may make u liable for any payments.)

These forms were just confirmation i didn't want the house ect..

Since then i have have got a new job 5 minutes walk from my house, a lovely house in a great little town. As i don't need my car, i sold it to pay for my bankruptcy. I now have the money and the forms completed and hope to go to the courts today. Well as long as i can get an appointment, as i thought u could just turn up!

If it all happens today, i will post the experience on here as i dont know what to expect and i am suspecting all these horrible civil servants, staring at me, judging and making me feel worse than i already do!

Anyone know what there like and how quick the process is? I heard it can take all day! And trust me to choice the day when its going to be 29' today and ill be roasting in the courts!

:cool:

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We have just been refused a rental as failed credit check due to husbands ccj - even offered to pay a few months up front!!!

 

I know how you feel ! My home was repossesed last year, I approached a letting agency and was totally up front about my circumstances, I was asked to write a letter to the prospective landlord, I explained everything including that should my business fail (which it did) that I had a promise of employment (which I took up) I paid £500 deposit and one months rent in advance a total of £1635 including agents fees. Ok the house is not in a fab area but its big enough for my needs and I have wonderful views and I receive a little bit of housing benefit making it a heck of a lot better than a huge morgage.

Do you live in an area that has a private renters association,they've got oodles of information, Or do you have an employer who could give you a reference, try also your local papers or newsagents window for private lets. Landlords lookout for reliable tenants so point out your good points tell them if your conviction free and what a good neighbour you are.

Best wishes to you and your family

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Hi,

Well i finally went bankrupt yesterday, no appointment necessary...!

It was quickest £510 i have ever spent! It was quick and easy, took half an hour and the lady was very pleasant and knew her stuff!

I have to wait for a call now to see if i need to bring any more information but it was such a great feeling when i had done it! A huge weight lifted (on to my husband!)

i can know feel a bit better that no one is going to come knocking on the door or send me threatening letters now.

I have a nice rented house, nice job and feel alot of stress going away.

Just have to do it all again for my husband now! Think i need a holiday!;)

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  • 2 months later...

I would like to thank everyone that has posted on here, I have just registered to thank you all as you really have helped me.

 

I was worried as my husband and I have always had good credit up until buying a house :mad:. We are going through the same situation, we have just got rented accomodation we move in next week, we are going to hand the keys back to the mortgage company. We could only pass for renting if we had a guarantor each.

 

Is it right how I am doing this;

1. find rented accomodation

2. Give keys back

3. save up for bankruptcy

4. Pay for Bankruptcy

5. go to court

6. BE DEBT FREE and happy :p

 

would you advise to keep the keys or hand them in??

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Hi katie,

 

The order you said to do things was right, i did it the same.

Find nice house, move in, save up for bankruptcy, go to court and end of debt.

 

When i used to get calls from lenders, i ignored them as all they do is call people through an automatic system and demand money, you tell them your situation and then u will get a call the next day. It only stops when u either pay them or go bankrupt.

When i went bankrupt i gave them all my info about it and i havent had 1 call yet, most of the letters have stopped apart from 1 company who wont give up!

You can tell them you are saving up for bankruptcy but it wont stop the calls as without payment your details stay in an automatic calling system and can be called up to 3 times a day till 9pm! yes and its legally! crazy!

so i would tell them once but then dont answer there calls as u will be so sick of telling them the same story everyday.

Hope everything goes okay with you and good luck with it all!

Any questions, just ask.

Kirsty

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oh and u dont have to tell your rental company, as ur official receiver will do that. Check your contracts of ur letting agreement as mine did'nt mention bankruptcy but they do tell the agents and the owner of the property. When my letting agents found out they spoke with my husband to make sure we can still make payments. that was all.... i was worried they were gonna try and kick up out but they cant as there is nothing in the contact.

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