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Did you not have an endowment policy to cover the final figure please?
No I don't
Have they said whether or not they will take the house back?
They just said to put it up for sale, but its been up for sale for 6 months and it was valued less than the mortgage amount.
Yes. Sadly it is bad news. Generally they will not take a house back unless there is an Order for possession.
If you can not afford it then you have a number of options:
1) Post the keys back and ask them to take it back
2) Stop paying any more and they will seek an Order for possession
3) Once they have that then you can show the Council and you may be entitled to Council Housing
4) As there is a large debt you could consider going bankrupt if you have no assets
This will in effect wipe off any debt and you will be free after 12 months
I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest
Can I clarify anything for you about this today please?
I haven't paid anything since July 2013 but they haven't sent or done anything further
Ok - I understand. I would hope they would act fairly soon to repossess.
Do you think sending the keys back to them is the best way to proceed? Will they send me bankrupt and if so what happens? I only have a small amount of savings, around £2000 in the bank and my pension of £150 a week.
I would write to them first and say you want them to voluntary repossess.
If you go bankrupt the Official Receiver takes control of your assets.
But if you have nothing or very little then creditors will hardly get anything.
Then after 12 months generally you are discharged.
Can I clarify anything else for you?
Will they definitely send me bankrupt if I ask them to voluntary repossess? If they do then how long does the bankruptcy proceedure take?
Not necessarily. If they know you do not have any assets they may not bother. You can make yourself bankrupt.
The process is there is a Court hearing and the Judge makes you bankrupt.
The process it quite quick, a few months.
How much does it cost to make yourself bankrupt?
£175 but you may get fee remission. There may also be the Official Receivers deposit which I think is about £600.
Finally, the council tax will be due in April what do I do about that?
That can also be included if you are bankrupt.
But wait as long as possible - ask the mortgage company to repossess.
Once they do then Council Tax becomes their responsibility
Then you can decide whether you want to go bankrupt or not.
I shall write and ask the lender to voluntary repossess then and leave the bankruptcy for later. Just concerned that the council tax people will be on my back for payment as everything takes so long to get further, and what if the lender doesn't answer me, they are not helpful when i've phoned them.
Yes, but make sure everything is in writing.
Can I clarify anything else?
Thank you for your help with this.
All the very best.
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