i can no longer afford my mortgage since losing my joc what are the implications of "handing in the keys" am i liable for the bill when the house is sold etc

-- simon foy (simonfoy@uk.packardbell.org), February 20, 2000

Answers

Simon

I can really sympathise with your situation. Have you applied for all the social security benefits that you are entitled to? In some cases you can get help with interest on mortgage payments - it's worth checking out and will keep the lender off your back for a while.

Also, have you spoken to your lender, they may be able to help (you never know)they may be willing to put you on reduced payments whilst you look for another job.

When you took out your mortgage did you take out any cover that would pay your mortgage in case of sickness/redundancy etc? Don't ignore the problem speak to your lender and try to come to an arrangement.

Also, your mortgage should be your first priority over all your other finances, speak to your other creditors - utilities etc and try to have reduced payments until you're back on your feet. If you have store cards etc, check your terms and conditions and activate any insurance cover for loss of job etc.

If you've really had enough of the whole thing and want to walk away by handing in the keys then it's your decision but think very carefully before you do. If they do repossess then yes you will be liable for any shortfall - although you probably took out an MIG, it's not really worth the paper it's written on. Although your MIG will pay out most of the shortfall - it's counted as a recoverable loss so the lender will probably chase you for up to six years to try to recover the money.

I know it's easy to lose hope in this sort of situation but if you try and negotiate with your lender at this stage you may be able to dig yourself out of this hole.

I wish you the best of luck

Best of luck Good luck

-- Joanne (a.baines@lineone.co.uk), February 21, 2000.