Hopefully someone can give me some guidance here.
I have lived in the USA for 6 years now. All of this time I have 'owned' a property in the UK which has been rented out. I have tried to sell it numerous times with no luck. I am now upside down on the mortgage and the rent does not cover it either (by 350 British pounds each month).
I am close to having to allow the home to be repossessed. In the UK it is my understanding that the bank who owns the property will sell it and come after me for the difference between my mortgage and the selling price. I estimate this might be as high as 40,000 pounds. The bank has my US address.
- how will they pursue me for the money? Is it a stupid idea to 'just ignore them..?'
- should I talk to them now and let them know I am no longer able to afford the mortgage? I have tenants in now, and will ensure they are given the required notice before I pull the plug of course...
- in today's economic climate, how likely is the bank to be to have a real appetite to chase me down?
- can they pass the debt to an American agency to chase me? If so, is there any real power in doing so?
Anything else I am missing..?
Thanks in advance!