Advice on failing mortgage payments/ what options do i really have?
I have a 3year fixed rate mortgage which doesn’t end until sept 2011. I will be finishing my current job (i was on a temporary contract) in a few days and realise i am not going to be able to afford my bills and mortgage etc and i have not found another job yet.
I would like some advice on what to do, i have no savings, i know my house value has decreased by around 10k so selling it doesn’t seem to be an option + all the estate agent fees that i would en cur would make it worse.
Are there any such thing as being able to give the property back to the lender to sell, i have heard of an agreement of handing the keys back?
Are there companies that can take over my property? or companies that will rent out my house for me, without me being too or at all involved?
what would happen if i was evicted or the house was re possessed or if i went bankrupt?
i am only 20yrs old and i no longer wish to own my own home so i am not fighting to keep it, i am happy to not keep the house but do not wish this to have too much debt etc, i do understand that this will not be painless and i am under no illusions i just want to know what my options are?
any advice is much appreciated.
Handing the keys back is a bad idea – the lender then needs to sell the property at enough to cover your loan. If they can’t get enough for the property then you will be hit with the bill for the difference. Handing the keys back does not absolve you of any liability.
Speak to your lender and ask their advice – they may let you go onto interest only repayments for a year or so.
Repossession affects your credit rating for years to come and bankruptcy should be the very last resort.
First thing to do is speak to your mortgage lender and honestly ask for help.
You don’t say which country you are in. If it’s the UK speak to Citizen Advice first and they will help.
http://www.citizensadvice.org.uk/
Well, i know how you feel. At such an early age I know you would want to have your very own home but without dealing or thinking about having so much debt.. I suggest you check out moneyhighstreet. They give out loans and there is a great chance that they will be the one to transact with the mortgage at low interest rates.. I hope this helps. Thanks and good luck.