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

Busymumof5

This is def not a wind up post and I am not a troll. If you check on my history you will se that I have made posts before about having debts and am trying to sort them out.
I came here because we are desparate for help with this and feel that I am being persicuted and not understood.
My father in law and his wife paid a huge chunck of the mortgage and the other 4 of us paid the rest, that was the agreement when we moved here. As thier share is so big we cannot possibly make it up, don't automaticly assume that we just can't be bothered and haven't looked into it, like I said earlier this has been an ongoing thing for over a year now and we are not taking it lightly.
Myself and hubby have debts that we are already struggling with but are trying to sort.
I would have expected a little more sympathy but I guess thats not the case. Thank you to all the people who have given good advice and not been judgemental.

Willsnarf1983

can you not give us figures and then maybe the people that you believe arn't helping may understand more?

neas

You should come here for help and advice not sympathy,hugs or kisses.

Can you quote some figures so we can get things in perspective (rough figures).

I.e... this house of your fathers it MUST be huge.

Ok questions you should provide everyone here to help you:

House Size (how many bedrooms):
House Valuation (Roughly how much do you think it is worth now-ish)
How much is the mortgage for? (this will allow people to see how much equity is left in the place... you don't want to bury head in sand and lose any equity it has... best would be to keep morthgage going being paid, 2nd best is to sell it to keep equity for your FIL and 3rd and final is to get it repossesed as most likely FIL will be pursued for the rest of equity.

Mortgage Payments required per month: i.e 1000/month

How did your FIL pay the mortgage and someone else cannot, was he a high earner?


Just still can't understand... if he was doing an average job then a couple of people working overtime could produce similar earnings as him.

Not trying to 'attack' you, just it seems hard to understand that 1 person loses income and the other 5 in group cant produce his share.

Obviously if the mortgage was 4000 pound a month... with a big mansion and your FIL had a 200k a year job then that would've explained it. But we need figures to see how realistic a solution would be.

Busymumof5

Off the top of my head here are the figures.

We purchased house for £330,000 just over 4 years ago, was an old woolen mill with main house and another already there and the woolen mill itself needing to be converted.
The conversion took just over a year and cost a lot more than expected so we had to take equity to cover the costs, which at the time we were told we had.
We now owe £500,000, house was valued just over a year ago at £650,000 so plenty of equity. With house prices falling and the fact that the house is very different we had 3 valuations done and were told that we would be lucky to get £400,000. All in all the shortfall each month is well over £1000.
The house is huge, and FIL was a big earner as he had his own company and a restaurant, this operation was because of a hospital blunder and has put a huge strain on the whole family, we did all we could to keep both businesses going for as long as we could but in the end it was impossible.
I did not come here looking for hugs and kisses I came here because I have heard such good things about the site, and have reccomended many peolpe for the same reason.

Busymumof5

Forgot to say that my part of the house is 5 bedroom SIL is 4 and FIL is 3. It is over 200 years old and has taken a lot of time and money to get to the standard we have it now, so none of this has been taken lightly and none of us want to leave, but for the sake of quality of living I would rather live in a 3 bedroom council house without the stress and worries, I am not a snob happiness is much more important to me than owning my own house (which is now worth nothing).

tattoed_bum

is it possible to ask to extend the term of your mortgage or even ask the bank for a payment holiday .are all the finances shared equally if you club together finances and shop together and eat together you may be able to get some of the money .
or you could ask to go interest only payments for a while so you all can get on an even keel

GDB2222

How many of you are actually on the mortgage?

Busymumof5

Were already on interest only, we asked mortgage company for a payment holiday and they said no won't do anything until we are 3 months in arrears then send out a debt counsellor and charge us £100 for the privallige. The shortfall is way too high for us to make up, we wouldn't be trying to sell if there was any other way.
We have been financially independant since the age of 22 are now mid 30's, financially this house has been the worst decision we have ever made.

flea72

i dont see how 3 substantially sized houses would only be worth £400k - yes, if tried to be sold together, as there are few people wanting 3 properties at once. but individually, they should be worth more than £130k each? Put it this way, even in the current climate, i dont know of any 5 bedroom converted mills, that go for this price

Also, if your dad was such a high wage earner, the business' were obviously making money, so why didnt the rest of you lower wage earners take over the business? Losing a leg, wouldnt mean your father, couldnt give the mental knowhow to continue running the business' successfully to maintain the incomes, even if the rest of the family had no idea on what needed doing

Flea

Busymumof5

There are only 4 of us on the mortgage as FIL would not have been able to get one.