me Again..Still unsure with this whole giving my keys back :(

DEBT_23

*** Please help me im stil unsure what to do.
i should be going into the letting agents tomorrow ( tuesday) to sign my agreements nad hand over rent and bond thurs 31st ... I need to know im making right decision with handing over my keys. its the only thing i have in my life thants mine, but if i get to keep my house i also have my secured loan will the OR be able to get it reduced if keeping my house is ok ? I dont want to go BR next week and keep the house to struggle later on.. more so as i could lose my Job if they find out i have been BR. .. If that happens i wont be able to cover my mortgage ,loan and arrears
Im in a mess and in need of advice.
I will be 'better off' in the rented house my only concern is me having nothing that is mine.
I pretty much been on my own since 18 ( no family) and always had my own home, the thought of going into rent scares me. ....
Am i giving up too easy? Should i be grateful if i get to keep my house.. ?
I just dont want to agree and hand over bond this week for the OR to say u can keep ur house the week after
I hate my messed up life. i feel im gonna crack up. didnt sleep at all last night thinking how much i love this house tho i cannot afford all the debt i have:(

peachyprice

Hi Debt,

As you're in negative equity it's highly unlikely you'll lose the house because of BR.

The OR won't be able to do anything with your secured loan, it will have to stay as it is. However, you can ask your mortgage company to spread your arrears over the remaining term of your mortgage, it's not something they like doing and they will tell you you can't, but there is a case in law Norgan, vs Cheltenham & Gloucester which ruled that this is allowed, if they take you to court they will lose.

You don't have to decide before BR whether you want to give up your house, you can do it at any time you are BR.

LilyBart

Sleep deprivation is used as a torture technique, so it's hardly surprising your most recent post is peppered with anti-smilies! First things first, get some sleep. Take a pill, have a glass of wine, whatever works (in moderation, that is). Second, you seem really, really panicked about keeping the house or moving into rented and that panic is being exacerbated by exhaustion. No-one here can make that decision for you. All I will say is that you may be surprised by how "at home" you can come to feel in a rented place. Get your papers in order, and get some rest. It'll be much easier to assess what the best thing to do is when you're well rested.

edit: sorry, one last thing. Don't forget there's not much of a material difference between renting and paying a mortgage when you're in negative equity.

mazzatee

Hi Debt_23

I really feel for you particularly as its a head or heart situation.

The reality is this:

Basic Income £1100 per month

Mortgage, arrears & secured loan £776 (70.5% of basic net pay)

Rent on property £345 (31.4% of basic net pay)

Just bear in mind that you are not yet 23 and are young to look at buying a property in the future, and you will be much older and hopefully much wiser!

Whatever you do I wish you all the very best!

DEBT_23

thanks maz lily and peach, i agree with you all.
Lily your edited bit : Im also on a interest only mortgage - nether gave that consideration til you have just stated that. im actually only 'renting' this i suppose :eek: and in feb 09 when tracker deal ends if i was to go on repayment it would be atleast another £180 pm. ( my rate wont be very good either with recent arrears )
I suppose i have just answered my own Question with regards of moving !!
I have always been proud of myself for having my own home. giving that i have never ask anything ov my family . i think thats what hurts the most. i got in this mess all on my own and never thought it would get this serious .

one last Question.
with the LL wanting Bond and Rent on 31st July and me getting a removal van etc, i only have half of my BR fee . if i was to save that and change my BR date from 6th Aug to end of august ( payday) i will have my full fee.

my only concern is i already owe welcome ( secured) this months ( they knockin on door for it ) and i told her i will pay her on 31st ( payday) tho if i move that day etc my debts along welcome wont know where i am. ..my house will be empty etc. my mortgage have 28 days suspended repossession and will file for that from the 5th august ( once they realise they not been paid) as i was going BR on the 6th Aug it only a week late and not that bad but i will only be going BR end of Aug.. what will welcome do??? track me down before my BR date. by that time i will owe them 2 months.

shadowdragon

DEBT_23 wrote: »

what will welcome do??? track me down before my BR date. by that time i will owe them 2 months.

And if they found you. What could they do? Nothing really they could knock the door, you could tell em to go away (or words of that effect), or ignore them. Ballifs ect is a long way away if you only stopped paying them recently.

LilyBart

I'm with Shadow on this. Believe me, I know it is *horrible* in the last few weeks prior to court, all those awful phone calls etc. Everyone who has been through this would prefer it to be seamless and straightforward, but all the creditors can do at this stage is hassle you. If you can find the money to get your post re-directed, do. And make sure that you recognise which numbers are calling your mobile. Put it on silent if needs be. Yes, we were interest only mortgage too and we didn't clock that it was effectively a very expensive rent until we were where you are now. Especially when you add in the secured loan. I hope you're really happy in the rented place.
Lily

LilyBart

Regarding being only 23, look at it this way: by the time you are 30, you will have begun to clear up your credit rating, will have put all this behind you, will have learned an INCREDIBLE amount about how to manage money, and you will be still be a mere babe in arms compared to the rest of us! Now, get some sleep tonight!

LOUISE22_2

Hi Debt 23 I feel your pain!!!! I have just turned 26 and I am in 50 K worth of debt with my fella and just want to die sometimes. I own my own home but i cant afford it and I have a secured loan with Welcome which has put me in negative equity and I am on a suspened repossession with the mortgage. I also have a loan from a friend who took out a loan for us and I pay back. I am considering BK to get my life back but am unsure whether I will be better off. Just wanted to say I know where you are coming from and I hope you let us know how you get on!!! Lots a hugs x

DEBT_23

lol thankyou Lily.
Im hoping as my car is now one ebay ( onother thread and a long story) lol
with a no reserve that will provied the BR fee as well as a smaller engine car
Just have to sign my rent agreement tomorrow, i will have a good read of it and see what it says about BR.

How many years would i have to wait to even be considered a mortgage. ?? ( Once in cheaper rent i shall be saving for a deposit) tho maybe the OR shouldnt know that bit ?!?