Abandoned homes

[soaps]

can people who aer in debt just abandon their homes? If they do, does the debt follow them?

[hc4361]

The debt does follow them. Plus the costs that accumulate in the repossession and selling processes.
When the house is sold the money pays off the mortgage and costs. If there is not enough money the couple will still be responsible for the short fall.

[soaps]

Hc. what happens if you bought a home for 300, and now It's only worth 100, and if it's abandonee and the morgateg holders just .............up-sticked?

[BAKERS DOZEN]

Surely its better to try and get as much money as possible from the sale even though you would still be in debt. If you abandon it and it gets trashed/vandalised it will be worth nothing and you will still owe the full amount.

[soaps]

BD, if it's only worth 100, and you paid 300 ! can you just walk away from it?. I dont think so!

[venator]

Bankruptcy may be a solution, but never never never get talked into an IVA.

[soaps]

An IVA?

[karenmac60]

You can do a voluntary repossession, in that you hand the keys back to the bank/building society - but you will still owe any outstanding balance after the sale. Or you can stop paying your mortgage and continue living there till they kick you out - again you'll still owe money on it. I had 2 flats repossessed years ago, but they never actually chased me for the money (in saying that, it was only around 30/40k, not 200k). My credit rating is shot to hell though, and I'll never get another mortgage.

[jackthehat]

<<...if it's only worth 100, and you paid 300 ! can you just walk away from it?. I dont think so! >

What ?

You *haven't* paid 300, though, have you ?.....otherwise there wouldn't be any debt !?!