# HELP Repossession Advice



## Shawsie (28 Jan 2011)

Hi There 

This has probably come up loads of times but can you help with some advice on legal grounds. 

Like everyone we bought a house in 2005 at the height of the boom for 375K. I lost my job had trouble with repayments but kept then going. We both got better jobs in the UK so moved 6 months ago. 

We still have the house and are just about paying the mortgage by sending money back to Ireland as well as having a tenant in the house. The money we are sending is going into a big money pit which we don't see the end of.

The house is now worth below 300K and we are thinking of contacting the bank and handing back the keys and walking away. 

*My question is, what comeback dose the bank have to come after you for the shortfall, and if someone has experience with this do they chase you even into the UK?   

I know by doing this we blow out credit rating in Ireland out the water, would it affect our rating in the UK as the bank we deal with is  RBS Ireland??* 

All advise is welcome

Many Thanks


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## maureen (28 Jan 2011)

well I guess we the UK taxpayer mightn't mind picking up your tab for you! As it's a British bank I guess they might be able to keep track


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## Time (28 Jan 2011)

If they find out where you are in the UK they will chase you for the shortfall.


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## maryb (28 Jan 2011)

How much is outstanding on the mortgage? Could you contact the bank and ask them if you can sell the property and come to some agreement re the balance? 
The bank can chase you. They could sell your debt to a debt recovery agency.
Other option is for you to go bankrupt in the UK, after you hand back the keys and the debt becomes unsecured. This will affect your credit rating for 6 years.


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## Time (28 Jan 2011)

> They could sell your debt to a debt recovery agency.


 I think that term is meant to scare the life out of debtors. It just means that some vultures have given the bank some easy cash so they can hope to get more form the OP debtor. 



> Other option is for you to go bankrupt in  the UK, after you hand back the keys and the debt becomes unsecured.  This will affect your credit rating for 6 years.


Depending on the size of the shortfall it might be a wise move.


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## Lululubelle (30 Jan 2011)

Hi Shawsie

My credit record is blown in Ireland from my AIB credit card.  Got listed on ICB for 5 years.  I live in UK and AIB UK have nothing to do with AIB Eire I have been told.


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## Time (30 Jan 2011)

There is nothing to stop them suing you in the UK and getting a County Court Judgement which will destroy your UK credit rating.


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## The Viking (30 Jan 2011)

Shawsie, 

On the face of it, are you sure you've evaluated all of your options here? You've managed to make 6 months repayments; and your property is only 25% underwater; and you have a tenant. 

Are these repayments at the lowest possible amount - interest only, stretched as long as the bank will allow? Because if you go the bank, explain you've left for the UK but are willing to put enough in for 5 years to keep the mortgage ticking over, then the bank might say yes and agree something for 5 years. 

Being forced to sell at a loss - with all that brings - seems what you should try to avoid at all costs.


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## Bronte (31 Jan 2011)

Shawsie said:


> We still have the house and are just about paying the mortgage by sending money back to Ireland as well as having a tenant in the house. The money we are sending is going into a big money pit which we don't see the end of.


 
You say you have two good jobs and you are able to pay the mortgage, the the best advice is to continue doing so.  And the money is not going into a bottomless pit.  The sooner you get down the negative equity to zero you can sell the house and be rid of it.  Each payment is a step in the right direction.  And make extra payments if you can.  Those fastest out of the negative equity mess will be the fastest to progress.


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