Getting desperate now...

papermoney

I have posted before but I have just been given the calculations of my maternity pay.

I have a mortgage of 134k
Remdeption £6
Estate agenet and sols £5k
House is on the market £124,995
Shortfall (at asking price) 20k
My mortgage repayments are £900
My pay is going to be less than £500 from January 2009
Mortgage company said no to renting.

The property is empty at the minute as we live in my partners house.

We cold take the 20k (we hope) from the equilty in the property - it is on a self cert mortgage because he is self employed (although with the way things are going who knows if they would lend the extra 20k) That is also saying we get the asking price which is highly unlikey if not just daft to think we could.

We are looking at any buyer offering ...what 10% below the asking price...
£113k ?

Which we could not cover at all.

I have no savings, nothing.

I have loans but not in my name.

I really am doomed aren't I?

Captain_Mainwaring_2

And you haven't taken into account how expensive kids are, but then, am I surprised?

I'd suggest that "they can mess around with you, but they can't make you pregnant", but in this case, it would seem that I would be wrong.

The only advise I can give you is that you tell the mortgage company that unless they allow rental without a premium, then you will go bankrupt, and that may not be far from the truth.

Does you OH have equity, could you not live in the place that is losing for the moment and do something with the OH's place?

simpywimpy

Do you have to go bankcrupt if you allow the bank to re-possess?

papermoney

Captain_Mainwaring wrote: »

And you haven't taken into account how expensive kids are, but then, am I surprised?

I'd suggest that "they can mess around with you, but they can't make you pregnant", but in this case, it would seem that I would be wrong.

The only advise I can give you is that you tell the mortgage company that unless they allow rental without a premium, then you will go bankrupt, and that may not be far from the truth.

Does you OH have equity, could you not live in the place that is losing for the moment and do something with the OH's place?

I am aware of how much children cost. I have a daughter already. So not sure why you are not surprised.

As for your other comment - im sure it makes sense to you but i'm afraid you have lost me.

papermoney

simpywimpy wrote: »

Do you have to go bankcrupt if you allow the bank to re-possess?

As far as i'm aware they can chase you for any remaining money but you don't have to go bankrupt. Although this was from another website and I could have read it wrong.

papermoney

I should have mentioned that we can not live in the other house as it is too small. We did try it and try to sell OH house but his is in a 'not so good' area and would probably have worst chance of selling (it was on the market before).
We have thought ways round it but the bottom line is we have to live in OH house and sell the other.

Captain_Mainwaring_2

papermoney wrote: »

As far as i'm aware they can chase you for any remaining money but you don't have to go bankrupt. Although this was from another website and I could have read it wrong.

No, quite right, you don't have to go bankrupt and it won't help you if you do, except get rid of other debts. They can still come back after a goodly few years and have a go so really the options are more limited.

The OP already has a daughter, so at least she can budget the additional costs into her calculations. I was a bit lost with all the equity stuff, but I assumes she means her partners place.

papermoney

Sorry - yes the equilty is in OH house not mine. As stated I have a mortgage of 134k and the house is on at 125k (just under) so definitely no equilty there.

Captain_Mainwaring_2

papermoney wrote: »

Sorry - yes the equilty is in OH house not mine. As stated I have a mortgage of 134k and the house is on at 125k (just under) so definitely no equilty there.

But you cannot sell it without the lenders permission unless they have sufficient security elsewhere. Am I missing something?

papermoney

Probably not missing anything at all. We have 2 options of either taking equilty out on the property we live in or getting a loan out another way. Which would cover the shortfall. The mortgage company (after a recent phone call) have said that if we sold we'd have to provide the solicitor with evidence of how we'd make the shortfall up. But it does not stop us selling the property at a lower price than what the mortgage is for (aslong as we pay all monies owed).

simpywimpy

So are you saying they will allow you to set up a payment plan for the rest or just that you would have to show you have the capital available to clear the surplus mortgage?

I must admit, I've considered getting a further advance on the mortgage just in order to get back the deposit I put in, then if it doesn't sell, just letting them take it back but the warnings of being hounded to the ends of the earth (or thereabouts) cancelled that idea!

My problem is that I am more or less on the point of being able to sell and be clear but would lose what I put in to it (thats presuming of course that I could find a buyer at the price offered)

If as the market predicts, prices fall again, then I will be getting less than I paid for it. I am still able to pay the £450 a month mortgage but wonder for what? I'm paying into a bucket with a hole in the bottom. I might as well burn the cash and be done with it. There surely must be a better option than this?