# unsustainable mortgage repayment



## Flowerman (6 Feb 2020)

Hi all, I am looking for some advice, I had an agreement with my bank about my mortgage.  They offered me a split mortgage which I have been paying for a few years now, my mortgage has been sold on to a vulture fund last year.  They have to honor the agreement I had with my bank with reviews every year.  My situation has changed, I can no longer work due to health reasons and cannot see how I can continue to keep up the repayments.  My question is can I surrender my house to the vulture fund? My house is still in negative equity, if I surrender my house and they sell on the house am I liable for the shortfall? or do I make myself bankrupt?  I have no other funds or savings or debts.  I am trying to figure a way out of this without still having a debt to pay back (which I cant afford) while at the same time giving up my home.  any advice from people in the same situation greatly appreciated.


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## Jim Stafford (6 Feb 2020)

You really need to see a Personal Insolvency Practitioner who are experts in this area. There might be options open to you such as a Personal Insolvency Arrangement, "Rent a Room" scheme, "Mortgage to rent" scheme or "cash for keys" etc

Jim Stafford


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## Flowerman (6 Feb 2020)

Jim Stafford said:


> You really need to see a Personal Insolvency Practitioner who are experts in this area. There might be options open to you such as a Personal Insolvency Arrangement, "Rent a Room" scheme, "Mortgage to rent" scheme or "cash for keys" etc
> 
> Jim Stafford


I have already been down that road, PIP, MABS. As I already have a deal in place; split mortgage, they think well you have a deal so you are ok stay in your house and pay what you have to pay. I had asked for mortgage to rent when this whole process started but was told I dont qualify. Rent a room yes that's a possibility but to be honest I can't see me doing that for the foreseeable future, like I said I cant see my health situation changing anytime soon  I have been dealing with this for years and I want out of the house and the debt. Has anyone surrendered their keys back to the lender, how does that work? Thanks for your reply.


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## The Horseman (6 Feb 2020)

If you surrender the property where will you live. Assuming you are single getting housed by the council is very difficult. I would reconsider the rent a room scheme if I were you. At least you will have a roof over your head and are reducing your outstanding debt.


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## RedOnion (6 Feb 2020)

Flowerman said:


> I have already been down that road, PIP, MABS. As I already have a deal in place; split mortgage, they think well you have a deal


Hi,
Jim, who responded to your post, is a PIP. One of the best in the business. If he says you should talk to a PIP, I'd be listening to him.


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## Flowerman (7 Feb 2020)

Jim Stafford said:


> You really need to see a Personal Insolvency Practitioner who are experts in this area. There might be options open to you such as a Personal Insolvency Arrangement, "Rent a Room" scheme, "Mortgage to rent" scheme or "cash for keys" etc
> 
> Jim Stafford


Hi Jim what is cash for keys?


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## Flowerman (7 Feb 2020)

I appreciate all your replies please keep them coming. I am going out of my mind here tyring to decide what to do.  I am exploring all avenues. If I rent a room wont that affect my dole/ illness benefit? I have never been on social welfare, all my life I have worked, I have never defaulted on my repayments either, but when I do the sums after my mortgage payment, house insurance, property tax, maintaining the house and gardens, before I pay usual bills heat, electricity, bins, car and food it doesn't add up, I'm living on or below the poverty line. This is my life right now no dramatics just reality.


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## niceoneted (7 Feb 2020)

Do you have rooms to rent out yourself for the moment, to bring in some cash and give you time to make a less stressed and more informed decision.


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## fairy1 (7 Feb 2020)

If you are on illness benefit or invalidity pension it will not affect the payment if you rent a room.


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## Flowerman (7 Feb 2020)

fairy1 said:


> If you are on illness benefit or invalidity pension it will not affect the payment if you rent a room.


Many thanks thats good to know


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