For serious negative equity cases as you describe above though Chris, isn’t there a set procedure the banks have to follow through the courts before repossession? The property usually then being put up for public auction by order of the Judge? The bank has the authority to chase the borrower, wherever they are, for any shortfall between the auction sale price and outstanding mortgage?
Only ever thought a bank would accept keys from an owner as long as there’s no negative equity, but could be wrong.
The rules are indeed much as you describe, but then like so much else, the rules have been thrown out of the window really.
And be the banks chasing tens of thousands of people for the money, the money they stupidly lent in the first place, and then ensure the owners comply… just won’t happen.
People don’t even bother with the keys anymore, in these circumstances they just stop all contact and leave the banks to it, and the banks have only themselves to blame.
A friends cleaner bought a €150,000 flat, with 100% mortgage that the bank knew all about, they just wanted to get the mortgage, now the flat is worth €100,000 and a monthly mortgage of something like €1,500 so my friend told his cleaner to just walk away, even if they embargo her wages in future it is only to an amount above the working minimum wage, and she gets the minimum wage.
The last I read there were 86,000 of these cases last year, in the past the bank may have had a chance, not this time, way to many people to chase.