Cannot afford mortgage payments - what are my options?greenspun.com : LUSENET : Repossession : One Thread
Took my mortgage out in 1993, never missed or been late with a payment.
2 years ago I emigrated to Canada, at that time I took on the services of a managing agent who placed a tennant in the property. 6 months ago, the tennant left and the property has been empty since. I've continued to make payments, but my money has now run out. The managing agent has said that the property is in very good condition, but wasn't hopefully of getting a tennant in the short term.
I was injured and no longer work, though I am hopefully that at somepoint I'll be able to go back to work and do some light duties. The building society (yorkshire) don't know that I'm no longer living in the UK, nor do they know I've been renting the property out (I didn't want to pay the additional 1.5 % they wanted to put on the mortgage payments). As far as they are concerned I am still living in the property.
I've just had the property valued, it came back at 17,000 (GBP), Outstanding mortgage is 29,000 (GBP) - yes, it's depreciated 12,000 over 8 years....... (I had it valued just before I emigrated and it was valued at 18,000 then).
So, the short of the matter is that I can no longer pay my mortgage payments, and if I try and sell the property the BS will be looking to me for 12,000 which I don't have (I have no savings or anything).
My next mortgage payment is in September, I will not have enough money in my account to cover it, so I am going to have to cancel the standing order.
Could someone please offer some advice on what might be my best solution to this?. I know I'm responsible for my debt, but being in a different country with no other UK assets (other than my pension, which I guess they cannot touch) it just seems to be to easy to walk away from it.
-- Howard Wilkinson (firstname.lastname@example.org), August 19, 2001
Howard..you may wish to know that depending on where you are in Canada, it is very very easy to be found there from the UK. I would suggest you sell the property and make some sort of deal with the Yorkshire to pay off the shortfall. They are likely to agree to a reduced sum if you come clean. I would not suggest walking away as it's not that easy and you may wish to return to the UK at some point. Do you really want 12 years of aggro? My understanding is that if you just "disappear" leaving no forwarding address - the BS are fully entitled to the 12 years as they had no way of contacting you under the 6 year guidelines. Two years away is not that long and things change after the novelty of being overseas wears off...believe you me.
-- Too scared to say (email@example.com), August 20, 2001.