Reposession, help..

Discussion in 'Joining Up - Royal Navy Recruiting' started by stealthmode, Apr 5, 2007.

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  1. I am due to start basic training in June (i'm going in as ETME(SM) ) but I am having great difficulties selling my flat. If I were to stop paying the mortgage once I have completed basic training and let the bank reposess the property would this have any effect on my career?, I know I will have had a credit check as part of the security clearance but do the navy take a dim view towards people in less than healthy financial situations once serving?

  2. cant you let it out via a agency.... then your flat gets paid offf fr you while your away...
  3. Rent it out, don't be a feckwit and get it repossesed,reposet,oh **** it, you know the word ;)
    I will have an effect on your whole life, not just the RN

    taken off you :)
  4. Why sell, think of all that growth in its value that you will miss out on!

    If you cant get enough rent to cover your mortgage on a repayment basis then switch your mortgage to interest only to reduce your costs and ensure that any rent that you get is sufficient to maintain your mortgage payments in the interim whilst yuor salary takes a dip. Go to your lender and request a consent to lease, most lenders dependant on circumstance will agree to this. IN your circumstance I would think it was a dead cert.Bear in mind switching to interest only and the consent to lease might set you back an admin fee usually between £100 to £200 quid but its alot less than they will charge you if you go down the route of repossesion

    Avoid repossesion at all costs it will f**k your credit rating for years and will mean any mortgage or loan in the future will cost you a fortune.

    If you need any help feel free to PM me. When Im not RNR'ing it Im a mortgage advisor/financial advisor in civvy street and can point you in the right direction.

    Good Luck!
  5. You'll have to explain to the Mortguage lender that you intend to let the property. Its fairly easy--there's a lot of people who actually buy to let anyway.
    Then look around for a reputable letting agent-----most have the same terms but some aren't so particular regarding accounts and general looking after the place during letting.
    You may have to get certain safety certificates prior to letting so you may need money up front.

    Main thing is not to stop paying the repayments---- if they repossess then sell it at auction if the price obtained doesn't cover your initial mortguage loan then you will still be in debt!! You can do a deal---like pay less each month if you explain the circumstances.
  6. Seems like everyone on this topic is in agreement.
    Go to your mortgage lender and explain the situation. tell him that you would like permission to rent it out so that the payments can be assured. then go to several estate agents and see which ones will give you the best deal for handling all aspects of renting your flat. Even if you don't get the full mortgage paid by the tenants and have to pay some yourself at the end of the day you will own the flat.
  7. janner

    janner War Hero Book Reviewer

    Well done stealthmode, you have managed a first, well from my memory this is the first time a thread has stayed on topic, loads of good advice given, make sure that you go to a reputable agent for the letting agreement, you may pay a bit more but it will save you hassle in the future.

    Mods close the thread quickly!!!!!!!!!!!!!!!!!
  8. silverfox

    silverfox War Hero Moderator Book Reviewer

    Satisifed customers?

    We should have them stuffed....
  9. Stealthmode

    For once I can talk knowledgably about this topic, being a lawyer and someone who was in a similar position.

    A simple letter to your lender confirming the reason why you need to rent the property out, explaining the urgency of the situation. You will get an answer pretty quickly. A visit to a letting agency and voila - problem solved. They deal with people who are abroad all the time, they can have almost complete control.

    Like WM - PM me if you need further legal advise.
  10. Stealthmode
    Why not ask your lender if they will extend the term of your mortgage i.e from 25 to 30 years this would bring the repayments down. I believe some lenders are now offering 50 year term mortgages OUCH.Wouldn't want that!!
    The other thing is to ask for repayment holiday of say 6 months when they will just add what is owing onto your mortgage.
    Whatever you do NEVER hand over the flat.
    Hope this helps
  11. I will just echo all the advice already given, what ever you do do not allow the bank to repossess the flat. Letting could be a good idea, but have you found out why it is not selling, perhaps you can solve that problem and get a sale.

    Remember allowing the bank to repossess the flat is defaulting on a loan, and will seriously damage your credit rating, you will not be able to get any new credit for some time escept at usurous rates, and the bank will sell at any price to shift it and if they do not cover your loan they will still chase you for the balance, so you can end up with no credit and still a big debt.

    Good luck.
  12. Ninja_Stoker

    Ninja_Stoker War Hero Moderator

    Some excellent tips already, especially general all round common sense stuff. In short getting your property repossessed is never a good idea, but another couple of points regarding a service career: You must have a bank account in order to be paid. (Not easy if bankrupted) You could be hoofed-out for "financial irresponsibility" if the RN becomes aware that creditors are chasing you. :cry:
  13. Selling seems to be your preferred option, however before you do sell think about how long it took you to actually get on the property ladder. If you sell you will no longer have a property and so next time you wish to buy you are effectively a first time buyer.
    My advice is try to keep your property, rent it out through a reliable agency then sit back and watch your asset increase in value with someone else paying for it.
    The property market is volatile. however in the past 40 years there have only been two periods where property has devalued and left the owners with negative equity. The property in both cases recovered it's value within five years.
    Bricks & mortar is the safest investment that you will ever make.
  14. Oh b*gger, you've got me agreeing with you again Slim, this must stop or people will start talking about us.

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