negative equity, bought a lemon, now working over seas

Dithering_Dad

blahbob wrote: »

...c)I will have to watch it fall for 4 years, and wait for 4 more to get my 15K back

Better to have to sit tight for 8 years in order to be back at square one, than have to sell at a loss, get an unsecured loan for 30k (or more depending on what you can sell the house for and how much it costs to sell - estate agent & solicitors costs) and then spend the next 8/10/15 years paying back the loan, then a further 5 yrs building up another deposit, just to find that house prices recovered and you cannot afford to buy a similar property to the one you sold.:rotfl:

blahbob

Hi All,

Just want to say thanks for all your support. The most scary thing is how I didn't see this coming. There has got to be many others in similar/worse situations and its incredible that our illustrious leaders and bank CEOs aren't being locked/lined up (it is still early days yet..). This is an outrage, I've since found out in other European countries selling mortgages beyond peoples means is simply illegal. And the concept of 'sub prime' would fall in to that category. Luckily I didn't extend my self too far and have some room to wriggle in, but I never expected things to get this tight.

It basically comes down to the numbers, selling is not an option. I MUST make the rental income cover the mortgage and expenses ASAP. Assuming an interest rate of 7.5% I need to find a 35% of my mortgage i.e. £42,000. So, 'Hi Mum, I'm coming to live at home for a while, whilst I knock 35% off my mortgage, hope you don't mind. If only I could do that, then again i don't seem to have a choice so I really might give it a go. I'd have to get a new job in Leeds/Manchester, sell car etc, take train, stay in, count pennies.... till the bears go away.

neverdespairgirl

blahbob wrote: »

I MUST make the rental income cover the mortgage and expenses ASAP.

You can't assume this can be done. What rent you can charge depends on the local market for rents - nothing to do with what you have to shell out. Have you looked on rightmove etc to see what similar rents are?

blahbob

I now have the option of getting my old job back in the UK, and maybe getting a guaranteed sales price after all, but that then commits me to buy again, but maybe this time Id be able to make outrageous offers to people in situations like my self. Then again, people don't seem to be selling up as people can afford their properties, which was not the case back in 90s.

Also, with nobody buying rents will inevitably increase.

http://news.bbc.co.uk/2/hi/business/7506036.stm

In the report, Professor Michael Ball, of Reading University, predicted that rents would rise by 10% to 15% in both 2008 and 2009.