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Massive arrears and shortfall sale
Zulu187
Posts: 9 Forumite
I currently have a mortgage with Kensington which has massive arrears, my credit rating is shot to hell so I have no real prospect of getting a cheaper interest rate from them or anybody else.
Purchase price back in 2007 - £135,000
Original Mortgage amount - £121,500
Interest rate 7.85%
Expected Payment amount at £930 odd
Current property value - £82-85,000 (as per valuation by Colleys)
Current mortgage balance - £144,000
Arrears of £24,000
Current Expected payment amount £1050
I survived an eviction today by agreeing to pay them, £5,000 + £3,000 next week, + £3,000 (most of which is being borrowed from family and friends) next month in February and subsequent payments of £1,250 per month in order to clear the arrears.
Obviously the property has massive negative equity and it is just not feasible for me to try and maintain it at this cost.
What I want to do is sell the property at a shortfall and be done with it. The only hitch is, its a family property which we've had for nearly 30 years and I want to keep it in the family thus, I'd want to sell it to a family member, something I can't guarantee if I let it go to eviction and auction. I managed to get a written offer backed up with solicitor details and proof of a mortgage offer to confirm that the sale would go through at £90,000 (£5-8k above market vale) with a £20,000 cash deposit thus the amount being borrowed from the new lender would only be £70,000 thereby not affecting the new lenders interest in the property.
The problem is that Kensington are not letting me do a shortfall sale. I was told:
"sorry but with the arrears on your account we cannot consider a shortfall sale. You must either make an arrangement to clear the arrears off or we will go down the repossession route"
No option of me discussing possible payment plans to clear the shortfall difference whatsoever. just simply the above ultimatum ,that's it.
What I want to know, is how can I convince Kensington to allow me to do this shortfall sale??
Purchase price back in 2007 - £135,000
Original Mortgage amount - £121,500
Interest rate 7.85%
Expected Payment amount at £930 odd
Current property value - £82-85,000 (as per valuation by Colleys)
Current mortgage balance - £144,000
Arrears of £24,000
Current Expected payment amount £1050
I survived an eviction today by agreeing to pay them, £5,000 + £3,000 next week, + £3,000 (most of which is being borrowed from family and friends) next month in February and subsequent payments of £1,250 per month in order to clear the arrears.
Obviously the property has massive negative equity and it is just not feasible for me to try and maintain it at this cost.
What I want to do is sell the property at a shortfall and be done with it. The only hitch is, its a family property which we've had for nearly 30 years and I want to keep it in the family thus, I'd want to sell it to a family member, something I can't guarantee if I let it go to eviction and auction. I managed to get a written offer backed up with solicitor details and proof of a mortgage offer to confirm that the sale would go through at £90,000 (£5-8k above market vale) with a £20,000 cash deposit thus the amount being borrowed from the new lender would only be £70,000 thereby not affecting the new lenders interest in the property.
The problem is that Kensington are not letting me do a shortfall sale. I was told:
"sorry but with the arrears on your account we cannot consider a shortfall sale. You must either make an arrangement to clear the arrears off or we will go down the repossession route"
No option of me discussing possible payment plans to clear the shortfall difference whatsoever. just simply the above ultimatum ,that's it.
What I want to know, is how can I convince Kensington to allow me to do this shortfall sale??
0
Comments
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You do seem to have a payment plan in place already:
"I survived an eviction today by agreeing to pay them, £5,000 + £3,000 next week, + £3,000 (most of which is being borrowed from family and friends) next month in February and subsequent payments of £1,250 per month in order to clear the arrears.""You were only supposed to blow the bl**dy doors off!!"0 -
Perhaps its time to consider going bankrupt?0
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What I want to know, is how can I convince Kensington to allow me to do this shortfall sale??
You are not in a position to. If you default then Kensington can do as they wish.
The family member could approach Kensington once you've defaulted. As the transaction would be a matter between them.0 -
24K in arrears at 900 per month does stretch the credibility of forbearance. I don't know how Kensington make their profits. I presume by exploiting the rest of their remaining customers,with sky high mortgage rates.
J_B.0 -
RenovationMan wrote: »Perhaps its time to consider going bankrupt?
Some reading.
What will happen to my home
http://www.bis.gov.uk/insolvency/Publications0 -
Before doing anything to do with bankruptcy take proper advice. Bankruptcy is for unsecured debts and yours is secured. If you are repossessed and have a shortfall you need to make sure this would form part of any bankruptcy so timing is crucial. No point in going bankrupt only to find the debt is not part of it.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Is that not 2 years worth of non payments!!! It is not surprising they don't want to help.Don't Panic - and carry a towel
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if you are a serious poster (which seems maybe unlikely) then you are simply throwing money away (which isn't yours .. family and friends)
default completely; stop paying them and go bankrupt
get advice from CCCS or payplanEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
I am a serious poster. I'll try the CCCS see what I can get out of them, the only thing stopping me from defaulting totally is like I said ee've had the property in our family for 30 off years and mum is very attached to it. I just wanna know the factors that would lead the lender to consider my proposal over the option of a repo0
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Your proposal fails to address how you intend to repay the £54K shortfall if you sell the house for only £90K with a current mortgage balance of £144K."You were only supposed to blow the bl**dy doors off!!"0
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