I bought a house in gorton, manchester 5 years ago for £19500. RBS gave me a 100% mortgage on this even though the valuation was £18500. (Yes call me stupid but I was 19).(posted 7879 days ago)I moved out nearly three years later because I inherited a ready made family, and estate agents then valued it at £6-8000. I couldn't keep up the mortgage repayments and after 6 months of being empty they contacted me to say they were changing the locks. I have heard nothing off them since relating to repossesion or how much it was sold for, but i know there have been people living there. Is it actually classed as repossessed?
I am now a housewife and my current partner is self empoyed, although he wants to stay out of it obviously.
I got a letter from unidebt collections demanding an Income/expenditure form to be filled in. I sent it back offering £10 per month as on paper I have got more going out than I have coming in. I am on WFTC. I am worried now as I have read on here not to send in these forms! Although I suppose I admit liability for the shortfall as the house could not possibly have fetched anywhere near what I paid for it.
They wrote back to me saying this was not acceptable, and I must reply within 14 days to avoid court action. I am getting really fed up over this and could not bear to be paying x amount for the rest of my life to try in vain to clear this debt.
Where do I turn now? I considered declaring myself bankrupt but as I have no other debts (apart from ongoing credit cards etc) I am not sure this would be a good idea. I could possibly get a loan for a couple of thousand to offer a settlement. But what is my first step? It would help if Iknew what exactly they were chasing me for!! Are they obliged to tell me this?
I have read the repossesion tips on this site but it all looks so complicated, eg preparing a case against the lender etc, I would be grateful for replies in simple terms if possible as I am still trying to get my head round all these legal terms!!!