Advise with unable to pay mortgage

Question

Live in Scotland but struggling to pay my mortgage now, wanting to rent wish to sell house but because of current market status may prove too long what happens if I simply hand keys back to mortgage lender????

Answer 1

It is not that simple to hand keys over to lender.. You would still be on the hook for the loan no matter what,,, If you sell the bank lender will get their money right off the top.. If the bank forecloses on the house you are still liable for the balance of the loan

Answer 2

I was in the same situation. However, you cannot just hand over the keys because the lender will try to get whatever they can from you. Depending on how far behind you are, call your lender to see if you could work out a payment plan... they may be able yo adjust your monthly mortgage for awhile for you to be able catch up. Or, if you do decide to rent, you may try to negotiate a lower monthly by saying you are renting it out for x amount and that's all I could afford to pay for temporarily. This type of situation is happening all over. I don't really know how things work exactly where you are, but my real estate agent in the states suggested doing a short sale of my house which is lowering the market value of the home in order to try to sell quickly. You won't end up with anything or much in the end but atleast you'll get rid of your house. Hope this helps.

Answer 3

Speak with the lender see what they can come up with to help you.Handing the keys back is not an option you will still be liable for the monies owed.

Answer 4

speak to building society and tell them of your problems  in paying mortgage /see what options they will give you.

giving keys back not an option /your still responsible for the mortgage debt.

Answer 5

The mortgage lender do not want your keys, they want the money which you owed them. Go and discuss with them, and tell them your problems. If they are responsible lender, they should try to find a way out of your problems. Like restructuring your mortgage and calculate a new repayment schedule for you, that tailored to your affordability, so that you can continue staying in your house.

Answer 6

You will still owe the mortgage lender I'm afraid. The house will probably then be sold for less than you would have been able to get for it had you been able to hold out for longer and at worst it may not clear the balance of the mortgage, leaving you in negative equity, having to pay the mortgage lender for the shortfall, while paying rent elsewhere.

Get advice from CAB. Don't ignore the problem, it may be better to reschedule your mortgage so that the monthly payments are reduced.

Answer 7

Talking to your lender and getting a plan together is the best thing. Sometimes the lender will allow you to do a short sale on the home. Please see the link. I am not sure if this is something they offer in Scottalnd, but they may have something similar.

http://www.nolo.com/definition.cfm/Term/...

Answer 8

Giving the the keys back is not going to get you out of your problem, you bought the house and it you they want the money off, if you have a "citizens advice bureau" were you live go and see them, they may be able to help you, if you haven't got one then go and see who you had the mortgage off and tell them of your problem, they may be able to work some thing out, all so putting your house on market won't do you any harm, the people you had the mortgage off will see that you are trying to do some thing about it.