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if my house is reposessed and in negative equity what happens?
Comments
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Some lenders now a days will agree to what is called short sale in "exceptional" cases. Short sale is where the borrower is in negative equity and the lender still agrees for the property to be sold and the sale proceeds used to pay down the loan. Any loan amount in excess is written off by the lender. However they will agree to this only if they know that you don't have any other way to pay off the mortgage. If you genuinely don't have any money, then foreclosing a property is not in the best interest of the lender - it involves time, effort and cost and more importantly repossessed property will sell for less than if you as the owner sold it. Overall the lender will get more cash by letting you sell the property.
Given you had a disabled senior person in the family and children they should be more willing to listen to you.
Hope things work out for you.0 -
Is FIL up to date with HMR&C?
If not they probably control the outcome.0 -
If they are all joined together is there any sensible way they could be split? If so then you can get the freeholds split off. If you do this you can then remortgage each part separately and maybe sell one of the parts off to reduce the mortgage on the remaining sections. If you could split off one bit in this way then it might be the answer to the problem.
Is it possible of one of the families to move in with another and then rent out their bit for extra income if you can't split them off? It might be crowded for a while but until mortgage rates fall or income increases I don't see another solution.
Also talk to the CCS to see whether they can suggest another solution. There will be a way out of this.0 -
I'm thinking could one property come free for renting out in school holidays as a holiday let? Or two properties?
One set could move in with another and leave the most holiday rentable free. Or could you all move into the 5 bedroomed place and rent out two of them?
6 weeks school summer holidays plus christmas/new year and easter - even without half terms, you might almost be there.0
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