Scott, I understand and agree with you.
Just been hearing on the BBC that 45,000 homes will be reposessed in 2008 rising to 80,000 in 2009.
However, they did say about the governments help packages to stop this - like a mortgage holiday, paying interest only for a while etc etc
Does any of that help you?
Also if your house is sold, will it cover the outstanding mortgage debt? I hear in some cases it falls well short and does not solve the problem.
Col
Col,
The government scheme will not help me and frankly it wouldn't have done anyway, the details of it have not yet been released but knowing this goverment it will be means tested to the point where only the people on less than 10k income would benefit.
My court hearing is on 24th January for the repo, I am not contesting it, I will be glad to see the back of it.
Yes there will be a heavy shortfall, chances are the property will be sold at auction at a much reduced cost, and I will be left with the shortfall.
But I have been told by a debt charity, that if it is sold for a ridiculously low price I can contest the shortfall as they have a duty of care to me to sell the property at a reasonable price based on market conditions.
The property was bought in 2008 for 240K, the surrounding area has dropped by about 18%, therefore a reasonable price would be around 190K.
Either way, whatever shortfall is left becomes a non-priority debt such as a credit card debt, and can be negotiated to small payments schemes or written off with either Bankruptcy or an IVA.
I have looked into this extensively so as to protect my family, once their are no assests they are very limited as to what they can do.
I work full time and earn a good wage, therefore it is not in the creditors interest to make me Bankrupt as I would lose my Car, which is allowanced through my work and would consquently lose my job, which means that they would get nothing and the debt would be written off, it is in their best interest to negotiate with me that they will get all or least a majority of the debt owed back to them.