Advice please for My MIL selling her house

marshmallow79

Doozergirl wrote: »

She's not going to lose everything. If her house is cheaper, other houses are cheaper. Admittedly she would lose out if she's downsizing but she won't lose everything.

She's on a fixed rate at the moment which runs out next spring and she knows that she can't afford to pay what they'll ask for when it does run out if the rates just stay where they are at the moment (how unlikely is that!!!). Basically if she doesn't sell up before then she will end up losing everything!
She is looking to downsize and have no mortgage so she won't have to worry about having to meet payments.

Doozergirl

marshmallow79 wrote: »

She's on a fixed rate at the moment which runs out next spring and she knows that she can't afford to pay what they'll ask for when it does run out if the rates just stay where they are at the moment (how unlikely is that!!!). Basically if she doesn't sell up before then she will end up losing everything!
She is looking to downsize and have no mortgage so she won't have to worry about having to meet payments.

She has a £60,000 mortgage. She won't lose everything and you know you wouldn't let it get to that point anyway. I'm not saying it wouldn't be hard or that she wouldn't be worse off, but she won't lose everything. Even if the house was repossessed (which it won't be) it's going to sell for more than £60,000.

marshmallow79

I also get the impression she's living off her credit cards at the moment which is never a good sign!:eek:

Rabiddog_2

How old is she ? Why cant she afford a mortgage of £60,000 I mean, thats nothing in todays world? Even if she went out and got a little job for £15k she could probably afford it? Maybe instead of preaching to her, get an Estate Agent round (even if they are an actor friend ) to tell her the real price. or bung her a few grand, after all she is your Mum.
Or even suggest a few of YOUR friends to rent a room from her, she wont mind them will she?
Whats the Dire rush to pay off £60k? And what about a lifetime mort from the Pru?
Lots of questions...

marshmallow79

Rabiddog wrote: »

How old is she ? Why cant she afford a mortgage of £60,000 I mean, thats nothing in todays world? Even if she went out and got a little job for £15k she could probably afford it? Maybe instead of preaching to her, get an Estate Agent round (even if they are an actor friend ) to tell her the real price. or bung her a few grand, after all she is your Mum.
Or even suggest a few of YOUR friends to rent a room from her, she wont mind them will she?
Whats the Dire rush to pay off £60k? And what about a lifetime mort from the Pru?
Lots of questions...

She's in her late 50's so has to pay off the £60k in the next 8 years or so which is why she's struggling. She's paying it on her own and does have a job but she's been over stretching herself for a while I think (bought a brand new convertable last year!:eek:). I've not been preaching to her at all I've just been trying to find a why to explain the market to her but she's one of these people that thinks every one else is wrong and she's right!:rolleyes: She has the house on the market with 2 EA's as well as me trying to sell it and we're all telling her the same thing but it seems to be falling of deaf ears!
I don't have any money to give her to help her and I have a child to think about so I'm not willing to push myself deeper into debt to help her I'm afraid.
As for renting to a friend all my friend own their own places so that's a non starter.

Nenen

Have you pointed out that if the BS do repossess then they will sell it for whatever they think fit... she won't have any control over the price they set and it could be a lot less than you're suggesting!

Would your mil listen to the BBC? There's a lovely graph here if you scroll down the page:
http://news.bbc.co.uk/1/hi/business/7336010.stm

You could point out that's from April and things have got much worse since then!....

Then hit her over the head with this one pasted onto a large brick! :eek: http://news.bbc.co.uk/1/hi/business/7495561.stm

Seriously, I'm sure you are only concerned for her wellbeing but she is not a vulnerable old lady but a woman in her fifties, holding down a job etc and presumably of sound mind. The purchase of a new convertible makes it sound as if she is a bit of a big spender having a mid-life crisis who will waste any money she releases anyway. If she wants to go on a course of financial self-destruction then there's not a lot you can do. Just protect yourself and your own finances and make it clear you won't bail her out.

Rabiddog_2

Boody Hell... The only convertible I've ever bought was a Sofa that converted to a bed. STill got it actually.
Rent a Room to a (known) friend, was my point. (iTs tax free, up to £80pw)
50yo woman? Young vulnerable Student ? Its a win-sin situation...In the end your Mum still has to live somewhere?
Nick the Keys, sell the Motor on Ebay, pay the money off her mortgage and tell her to get the Bus everywhere. Convertible indeed, How very much dare she! :smile
(Nick the Keys is the name of a Car dealer on the old Kent Road)