Reply from Northern Rock after sending in keys

[mrssully]

Hi

 

I returned my keys to Northern Rock via my solicitor after the sale of my house fell through after I moved to Australia. I had not paid the mortgage for a number of months due to being off sick from work (work related injury). We left the process in the hands of the solicitor. Anyway, the solicitor returned the keys with a letter from us stating that we could not afford the repayments and the sale had fallen through.

 

We have received a reply (6 weeks later). They want us to sign a form, there is a paragraph that I am not too happy about....it says that they reserve the right to pursue me for the shortfall.

 

It also says if they have not received this form back within 7 days they will repossess it anyway.

 

What should we do? Sign the form and wait for them to come to us for the debt or just ignore it and let them take us through the courts.

 

Thanks for any advice

 

Regards

[GuidoT]

The general position in that can pursue you in any event for the shortfall.

 

In some countries, like America, once you hand back the keys that is the end of the matter, i.e. the property is the sole security on the property.

 

It is never really a good idea to hand the back the keys as you lose control, they can sell the house for well below market value and then pursue you for the balance.

 

In terms of the form, you need to ask yourself if it benefits you. If not does not do not sign. You have a solicitor what does (s)he say?

[spamheed]

There have been instances where the letters sent by lenders include some kind of assurance or guarantee that you would cover any shortfall regardless of your financial situation.

 

This would get the old alarm bells ringing.

 

Since they're going to repossess in any way, there is little benefit to yourselves in completing the form intact, you could perhaps remove, deface the offending paragraphs before signing the letter but then be aware that with the marvels of photoshop, copy and pasting a sig onto a blank letter is not completely unheard of