MARP & 1st year has expired: How do we surrender our home?

A

Alwyn

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Some months ago myself and my wife met with our bank manager to discuss our current financial difficulties regarding our mortgage. We left the meeting with high hopes. :eek: We obviously spoke too soon.

We have heard very little from our provider since that meeting and we were denied further access to MARP.

We have come to the conclusion last night that we are going to surrender our home.

How do we go about this?
 
This is a question for your bank to answer - I'd request another meeting with your bank manager. You cannot just walk away from any shortfall if you hand back the keys so if you are able to maintain a level of repayments you should do that and at least try and stay in your home.
 
Yes the first year has run out. We are paying just below interest payments each month. The bank are now refusing to deal with us and will not return our letters. Bankruptsy seems the only way out.
 
Michael3 said:
This is a question for your bank to answer - I'd request another meeting with your bank manager. You cannot just walk away from any shortfall if you hand back the keys so if you are able to maintain a level of repayments you should do that and at least try and stay in your home.
Click to expand...

Hi Michael, we have fought tooth and nail and feel we are on a losing battle with staying in our home. We are paying some money each month. We are in approximately 200k of negative equity.

The sad part of all this is, the bank asked us to prove that the property was in negative equity before we could be allowed into a MARPS agreement. We had to fork up money we did not have for a full on valuation.
 
That was a strange request from the bank - you dont have to be in negative equity to be in the MARP process, you just need to be in financial difficulty. Have you tried calling the bank and requesting another meeting with the manager?
 
My experience was everytime I satisfied a condition of entering MARP they threw another one at me unfortunately, they are a law unto themselves and until a Government has the balls to put manners on them the Banks will continue to do whatever they like.... or don't as the case may be
 
Hi BoomtoBust, Ive expanded your title some what. Let me know if the new title is ok.
aj
 
Title is perfect AJ. Thank you.

Just to give some background on the story - myself and my wife were both self employed. Our business was struggeling and we were unable to keep the company solvent.

We immediately informed the bank and they put us on part interest/part capital payments for a period of time. Our situation disimproved again and they put us on interest only repayments.

Roll on a couple of months later and we are called in for an update meeting with the manager. After spending an hour going through our finances they came to the conclusion that we were bankrupt. Their words not ours.

At this point they said they were going to introduce us to MARP but only on certain conditions. I can only remember part of these conditions now but the ones I can remember are:

A) For four months pay a % of your mortgage. If this cannot be met than MARP would not be introduced to us. We paid and were finally given MARP documents to sign.

B) If your business has ceased sell the commercial building it was operating from and if there is a profit from the sale this must be signed over to the bank immediately on receipt of payment. As the commercial property is also in a large sum of negative equity we had to ask the mortgage prrovider of that property could we sell it and put the N.E into a personal loan. They turned us down.

I believe it was on these grounds that our main provider turned us down for an extention on MARP.
 
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