My wife and I were in a negative equity situation and could no longer handle the stress, so we have just handed the keys of our property back to the Halifax.

They have sent us the above form - it has set off very loud alarm bells with me (employment details, admission of liability etc). Because of this I feel I should not sign it.

The question is... how do I proceed from here?

-- Craig (craig_safc73@hotmail.com), March 10, 2002

Answers

Hi Craig,

Knowing just how the Halifax operate I believe that you should be VERY careful about how you proceed. DO NOT be pressured by them into signing anything that could later be used by them to slap an alleged mortgage shortfall debt of their own making onto you.

My advice is to take your time and read everything on this site twice over and then formulate a plan of action. I must state here that my advice is purely based on my own case where the Halifax deliberately sold my repossessed house (which they themselves had clearly confirmed as a 4 bedroomed one) as a 3 bedroomed one. The Halifax did this EVEN though they knew they had been found out to be doing so. They also sold it with 16 Cubic Yards of rubbish in it. Again the Halifax did this EVEN though they knew they had been found out to be doing so.

I have found that I CANNOT trust them to do ANYTHING decent! You should make up your own mind after reading all the info regarding their practices on this site.

Good Luck !

-- Tony Hayter (Tony@Hayter.com), March 10, 2002.

I hate to be the bringer of doom and gloom when I see these posts. The stress of negative equity may simply translate into the stress of being chased for the shortfall + horrendous costs for the next twelve years. Did the Halifax pressure you into this action? Did they not explain what would happen if you did this? If you can,I would get the keys back and sell for the best possible price you can get. Yes, there will be a shortfall but that is easily negotiated with the Halifax who will likely settle for an agreed sum and you'll be finished with them. By handing the keys back, you've created a bigger problem - believe me, I did exactly the same and am still being chased over eleven years later. It's not a good move. If you sell, you have far more leverage than if you are repossessed. Don't sign that form whatever you do; it's an Income and Expenditure evaluation to find out how much you will have to pay them every month - this is on top of your rent etc.They do not take credit cards and loans into account when they work out disposable income and the Court (if they get a MJO) will not be particularly sympathetic. I do hope that you have some time to think about this!

-- Too scared to say (iwasduped@yahoo.com), March 12, 2002.

seems lots of people understand your predicument. understand the lender must obtain the best price for the house, to not do so will render them liable for a possible action from you. the form is to find out what they think you should pay them and then they use your bullets (the form) in court against you when they obtain judegment for the shortfall of the loan. how much shortfall are we talking about?

-- tom burrows (zebra.9@btclick.com), March 15, 2002.