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Voluntary Repossession of Your House

If you are considering voluntary repossession and handing your house keys back to your mortgage lender then you may wish to think again…

What is voluntary repossession?

Most people wish to go down the voluntary repossession route when they can no longer afford to keep up with the repayments on their home, and are generally in negative equity (the amount they owe on their mortgage is more than the value of their home). They have generally fallen behind with payments, are struggling and wish to give up the ownership of their home.

IMPORTANT: Please be aware that giving up your home to the lender will not neccessary wipe out the debts you owe and will quite possibly make matters alot worse.


What will happen to my home and what I owe if I hand my house back to the lender to repossess?

Your bank or mortgage lender will try to sell your home as quickly as possible to pay back what you owe them. Your home will most likely be sold at an auction and achieve a below market price (less than what is worth on the open market, via an estate agent for example).

You will also find yourself responsible for any reasonable costs associated with selling your home, this may include sales commission or solicitors fees. This will only ultimately be added to the mortgage debt that you already owe.

The proceeds from the sale will then go to pay off what you owe on the mortgage balance, plus interest and any arrears. Also consider that the longer it takes to sell your home the more you will have to pay as you will still be responsible for the mortgage payments and the costs associated with your home until it is sold.

Please be aware that you will be still be responsible for any shortfall if the proceeds from the sale do not pay off what you owe in full. This means you could be left with no home and still a large amount of mortgage debt that you will have to pay off.


There are other solutions

Handing back your keys and giving up on your home really is a last resort and is often done when people think there are no other options for them.

If you are considering giving up your home then please speak to us first as there are a range of solutions for homeowners who are in negative equity and are considering voluntary repossession. We are still able to offer you advice and/or buy your home regardless of your situation.

Writing a voluntary repossession letter?

Best Wishes, Susan

Author Susan Jones

Susan Jones - Ask Susan

Ask Susan is a UK based cash house buyer who purchases property quickly from those who require a fast house sale.

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