advice needed for friend

[BRIGHT SPARK]

my friend took out several loans with her house as security, she cannot make the re-payments, if the house is repossessed would she be liable for any short-fall? Would she be better to make herself bankrupt, if she did this would she walk away without owing any money?

[samuelcat]

When a house is repossed it is usually sold to the highest bidder regardless of value. You can be left still owing the bank the balance of the morgage.
I dont know about the bankrupt side of things.
Your friend really must get some advice. It could be that she may not have to lose the house at all but she must talk to someone now.
There are several good sites one of which I believe is a government back one.
Help your friend by getting the help for her if it is embarrasment that is stopping her.

[chrissa1]

Repossession is the final act. As the previous poster said, she has to talk to them to see if she can come to some arrangement. If it Is repossessed and sold, then they can only take what they state they are owed + any court fees etc. If there is any money left after all that, it will come back to her. She does need to get proper advice though. I wish her luck.
Bankruptcy is the VERY LAST resort as everything will go to the Official Receiver.

[lampgb]

Contact your local CAB who will give her advice on debt managing

[themas]

Yes - go to local CAB or, if this is not possible, contact CCCS.

If she did decide on bankruptcy then any shortfall on the mortgage after repossession would be written aff as a debt in the bankruptcy. However, there are a lot of implications to this & she must take advice about the whole matter.