Brendan Burgess
Founder
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I have always recommended to people with unsustainable mortgages, that they should try to sell their home with the agreement of the lender. This converts the mortgage shortfall into an unsecured loan. They can then apply for a Debt Settlement Arrangement. I am presuming that the lenders will pay less attention to a DSA than they will to a PIA.
What happens if a homeowner voluntarily surrenders the home to the lender and allows the lender to sell it? At what stage does the shortfall become an unsecured debt? Is it when they hand back the keys? Is it when the lender sells the property, which might not be for a year or so?
What happens if a homeowner voluntarily surrenders the home to the lender and allows the lender to sell it? At what stage does the shortfall become an unsecured debt? Is it when they hand back the keys? Is it when the lender sells the property, which might not be for a year or so?