mortgage to rent - is shortfall wtitten off?

[garden]

Does anyone know if the shortfall between selling price and mortgage value is written off fir anyone entering a mtr agreement?

In this case the mortgage holder has been unemployed for 5 years, and is in receipt of jsa and mis. The mortgage is about 165k and the house value is 75 to 80k.

 

[Brendan Burgess]

Hi garden

It would not usually be written off. The Housing Authority buys the house from you, and you still owe the shortfall.

If you are on JSA, maybe you should consider bankruptcy or a Debt Settlement arrangement.

If you complete the following information, you will get a more comprehensive answer

Standard Format for mortgage arrears and negative equity case studies

Brendan