Facing Repossession, please help!

moneymadman

Hello im in a right mess, first of all im posting becasuse i hope one or more of u clever people can give me advice and help me out! Im 23, my parents have been living in their home since 2001. My mum and dad both lost their jobs and now we face a third court date for repossession. The first was in 2003, the judge ruled as my father had just started a new job the Abbey ( our lender) would ansorb the arrears on our account. All was well but my father lost his job earlier this year. We had a court date in April, i paid off the arrers with a hefty interest loan but now we are in default again to the tune of £3038. I spoke to the abbey on my parents behalf the lady said they were just waiting on a free court date for a possession hearing. The only way to stop a hearing is to clear the arrears which we cannot do.

Now my father has found a new job and my mother works part time. Not the best jobs but just enough to cover the morgage.

we have a 50/50 morgage. We pay £238 rent to home housing each month
we also pay the abbey £362 morgage each month.

The morgae we took out was for £42,250

The house is approx worth £175,000 now.

So if we sold then home housing would get 50% ( 87k ish)
We would get the other half 87k. Of that we would pay the remaining morgage of 45k - secured loan of 5k but the rest would be ours.
So the property does have Equity there.

Ive tried to convice my parents to sell but they are late 50's and dont want to rent for the rest of their lives

My question is what to do!?!

1) Do we put the house up for sale (assuming i can convince my parents) then rent somewhere?
2) try to pour all the £ we have into paying the morgage + arrears in the hope the judge rules in our favour?
3) assume the house will get repossessed and make no further payments , keeoing funds for a rented place when the time comes?

Any help is appreciated as im very stressed out!

Income is as follows:

Dad wage: 600 pcm
mum wage: 300 pcm
Dad pension: 350 pcm

= 1250pcm

Outgoings:

rent: 238
morgage: 362
secured welcome loan: 135 pcm
council tax: 100pcm
utilities: 50pcm
ccjs: 30pcm
Paying nominal payments now to all unsecured debts: 20pcm
food/living 200pcm

= 1135pcm

Also does anybody know if the judge will reconise my income in addition to my parents when making a decision or just solely theirs? can i also attend court and speak on my parents behalf?

Please help! thank you! i am currently in discussions with ccs and cab

~Beanie~

I would go with option 1).

The signs are not good, your parents have only lived in thr house 7 years and have had 3 repossession orders already. The second of which was only 5 months ago and you are already over £3K in arrears again. Actually, how has that happened? If you say that you paid the arrears in April and the mortgage is only £362 then 5 months x £362 = £1810? Are you in arrears with the rent part as well?

Assuming you do manage to scrape enough money together to hold of the repossession this time, going by past history it is only a metter of time before your parents fall into arrears again. The rent / mortgage / secured loan take up 58% of your parents income before they even start looking at council tax, food, gas / electric etc.

Also you don't mention how much their unsecured debts are but it seems as though they cannot afford to pay these either.

Why don't they want to rent? Surely it is better than the stress of reposessions and debts that they have had for the last few years!

getmore4less

The key thing here is they are renting allready, don't they see that.

The evidence is they cannot afford this place, they have to keep borrowing money to pay the mortgage and rent.

Will selling(£37k less expences)clear all the unsecured debts?


Have you made sure they are claiming all the benifits they can, there should be tax credits somewhere in this.

minimike2

Sell or get reposessed. They are the only real options. Stop borrowing more money to pay it, it will NOT help.

First stop is Home Housing so they can get the ball rolling with the sale.

moneymadman

Thanks guys i know this is the right option to sell. Trouble is my parents have no assets. they see the house as the only tangable possession they have. To lose it would be very hard to swallow for them. But i think i must try to convince them.
If we decide on this route and sell the house, do u guys think it wise to save up, not pay anymore morgage so we have enough for rented place deposit?
Unsecured debts are big too but as i say we have negociated token payments so all ok for now.
the arrears are £3k because as u quite rightly say beanie, there are rent arrears also.
will the abbey stop ior suspend court proceedings if we put the house on the market?

chilli_dog

Hey Moneymadman,

Well done for helping out your parents mate!! Top man

I cant offer you any financial advise, just wanted to say good luck

mummytofour

Are they getting help with the rent part at all? They may be entitled to help.

I am very very surprised that they were able to get a second charge on a shared ownership home. I wonder, did the HA know about this and allow it? If not there might be cause to shaft welcome.

Also dont quote me on this BUT i think i read they other day that if your unemployed and is shared ownership they the ISMI will pay your mortgage from day one of the owner claiming IS or JSA this might be double checking. I wonder if they could claim retrospectively?

I would call shelter for some sound advice.

foreversummer

I agree with chilli_dog wholeheartedly.

Your parents should be very proud of you. You will all get through this together. I wish you all the very best.

Foreversummer

Ellie279

Bless you for trying to do the right thing by your parents. I hope you can persuade your parents to sell the house - make sure you dont spend all your time trying to sort this out you should be having fun at 23!

moneymadman

Forgive me but what does ISMI stand for? I dont belive we are entitled to any kind of support as my fathers small pension is always a stumbling block in that area. Tried again last night to convince them to sell, not gonna be easy! We chased off the provident collector tho meaning we have an extra 250pm to plough into the morgage

~Beanie~

Good luck, I admire you for what you are doing for your parents :T

I think you need to try and get it through to them that if they carry on as they are doing, they won't need to sell the house. It will be repossessed and they will have no house left TO sell.