If you know you cannot sustain or endure paying your mortgage, you can consider selling your estate and look for a cheaper housing instead. Voluntary surrendering property to creditor may involve costs. These costs pertain to valuation and the fees for a real estate agent.
You might also need to shoulder removal costs. If you are moving into a rented estate after selling your home, you also have to prepare expenses for deposits. It can be daunting seeing this costs at stake especially if you have mortgage arrears.
Can mortgage lender help in selling my home?
Once you’ve determined that the costs of selling your home are unaffordable for you, you can reach out to your mortgage lender. You can directly inform them about your circumstances and that you’re considering to sell your house. Your mortgage lender may extend help in selling your estate.
Additionally, some lenders may offer an assisted voluntary sale scheme. These are intended for individuals who are experiencing a financial crisis or shortcomings. This scheme gives you sufficient time to sell your home along with additional help in terms of the costs involved. Also, your mortgage lender is likely to agree in lowering the mortgage payments up until you’re closed deal in selling your home.
If your lender cannot help you in selling your home or property, you can voluntary surrender or hand over the keys of your property to them.
Before you consider this, you have to seek debt advice. We are happy to assist you in determining whether this option would benefit you best.
Besides, it’s always advantageous to sell the property rather than surrendering it. You have a better chance of getting a good price as compared to handing it back to your mortgage lender or provider.
On the contrary, if you’ve decided to hand back your keys, you need to consider factors such as:
- letting your local authority and utility suppliers informed about you leaving the property
- an alternative accommodation
- removing all your belongings granted that once you hand back the keys, you might not have the chance to access the property
- taking meter readings for utilities for the last time
Once you’re prepared, you can simply hand the keys to your lender and explain the circumstances. You can arrange this by returning in the keys at a branch or by special delivery via post. If consider postings the keys, make sure you solely incorporate your mortgage account number and not the address, for safety precautions.
What happens after my voluntary surrender?
After voluntary surrendering the property to your mortgage lender, the property will be marketed on your behalf. The proceeds mad from the sale will be given back to you. However, since it’s usually sold at an auction, you may not get the best value out of it. When your property is sold at a lesser value than your outstanding mortgage, you’ll have a mortgage shortfall. This means you’ll still be paying the remainder of your mortgage.
Generally, you’ll still be accountable for any costs until your property or home is sold. These include council tax and water rates. You must as well ensure that the buildings insurance policy is ongoing until it’s sold.
If you’re juggling to pay your mortgage or you’ve missed payments, it is an indication to seek FREE DEBT ADVICE. Our team of debt experts can help you gain control despite your shortcomings. We can help you get back on your feet by finding out which debt solutions suit your needs. You must need to act now before the situation becomes worst.