if my house is reposessed and in negative equity what happens?

Busymumof5

Hi, I have posted on another section but thought I would put one here too. We live in a shared house with Mother & father in law and brother and sister in law. My FIL has had a major operation resulting in partial leg amputation had to close his businesses resulting in a shortfall in the mortgage which the rest of us can't afford to make up. we are paying as much as we can and ahhave spoken to mortgage company who were no help. We are putting house on the market as our situation is not going to get better but as its a wierd property will not be easy to sell and we will be in negative equity.
If the house sells and we have negative equity or it gets reposessed if wee don't sell in time and there is a shortfall what then happens to that debt. We don't have any money to pay anymore as we are struggling already.
Thanks for any advice.

PasturesNew

To get permission to sell it, you'd need to borrow the money to settle the mortgage on the completion day. So at the moment it no longer belongs to you, you owe £0 on the mortgage and have a loan for the difference.

If it is repossessed it goes to auction and there will be more fees and interest to pay and you'd end up owing the difference between what it achieved at auction and the total mortage+fees etc. The mortgage company can chase you for repayment of this money for up to 12 years.

There are 6 of you in that house, 5 potential wage earners. Can you not all take on an extra job for a year or two to sort it out?

Cannon_Fodder

The mortgage company with pursue the mortgageholder for any outstanding amount.

They can take upto 12 years, I believe.

Better to sell at close to market value, although probably good to aim a bit under for a quick sale, than to let it get repossessed and they only get auction value, which could easily be 30% less than market value - they'll come for the difference.

How will 6 people afford rental accomodation if you cannot afford mortgage payments between you, is the next question, I guess, though.

Best way to play the "not making yourself homeless" game to get council assistance, also needs some thought.

Busymumof5

Its very complicated, we can afford our part of the mortgage and so can sister and brother in law, but MIL and FIL can't. Myself and my sister i law both have babies at home so by the time we paid for childcare even if we got help from the government we could not earn enough for it to make a difference. My hubby already works 6 days a week and BIL is a high school teacher so has no spare time as he has to do school work at home.
Were not trying to take the easy option here this has been going on for over a year now and is getting to breaking point where everyone will fall out.

We would be able to afford to rent and so would SIL, mother and father in law would get thier rent paid by SS as he is not classsed as disabled.

RAS

BMo5

Have responded to you other thread, but need you to check this

by the time we paid for childcare even if we got help from the government we could not earn enough for it to make a difference

If you worked and got CTC and WTC, your bnenefit entitlements may increase, you would be entitled to reclaim 85% of the childcare costs and you would pay very little tax or NI.

Please can you look at www.entitledto.com to check the situation. Ditto re mother in-law working.

You need the fill facts before you decide what to do.

maninthestreet

Busymumof5 wrote: »

Its very complicated, we can afford our part of the mortgage and so can sister and brother in law, but MIL and FIL can't. Myself and my sister i law both have babies at home so by the time we paid for childcare even if we got help from the government we could not earn enough for it to make a difference. My hubby already works 6 days a week and BIL is a high school teacher so has no spare time as he has to do school work at home.
Were not trying to take the easy option here this has been going on for over a year now and is getting to breaking point where everyone will fall out.

We would be able to afford to rent and so would SIL, mother and father in law would get thier rent paid by SS as he is not classsed as disabled.

With half a leg missing surely he's classed as disabled?

pawpurrs

Can you not share the child care between you and work part time,if you live together? Would that help? Just to get you out of this situation?

flea72

can MIL and FIL not look after the children so you and SIL could work. or between the two of you, look after each others children whilst the other works. If you an SIL both worked p/t that would equate to another f/t wage coming into the house, and i would have thought that could cover the shortfall of the parents share?

i presume the reason three sets of family decided to live together, was so they can help each other out?

Flea

Cat695

6 adults and god knows how many kids (mum of five) and you can't pay a mortgage between you all.....i dread to think the size of your mortgage

Busymumof5

maninthestreet wrote: »

With half a leg missing surely he's classed as disabled?[/quot

Sorry was meant to say is classed as disabled.

neas

Heres a thought... If two of you (mumof5 and + another) are stay at home mums in the same house... Why can't just one of you stay at home... and the other work full time to support the lack of income coming in?

Surely hard times calls for increased grind?

5-6 people sharing a mortgage, 1 can't pay and your seriously telling me you have no slack or don't have the ability to make up the difference between 5 people. Sound to me like you dont want to.. or this is a wind up post.