reposession

[kerrymill]

We have recently been taken to court for mortgage arrears. The judge adjourned the case for 3 mths as we are trying to sell the house, on the condition that usual monthly payments are met. Thing is, we are moving out next week into a rental property because my husband has a new job elsewhere in the country. We won't be able to afford to pay the mortgage at all and it doesn't look like we'll get a buyer willing to offer enough to cover costs (and extortionate redemption penalty). So my question is; with this court adjournment, can mort company take immediate repossesion of the house, or can we simply tell them we can't afford to pay and 'hand it to them'? We have resigned ourselves to this now, but don't want to be charged council tax, water rates etc while the process takes months. Any advice greatly appreciated.

[shomer42]

The mortgage company has a duty to obtain the best price possible for the property, however they may also look for a quick sale. A court will not usually grant possession to a mortgagee when you are selling the property, but of course if you do not sell it within a reasonable period he may grant the mortgagee possession. As the Judge adjourned the case for 3 months you could use those 3 months to find a buyer or contact the mortgagee and hand it back. Remember they will look to you for the shortfall, if you cannot pay it all back you will either have to pay it over time or seek an insolvency solution.