Please Advise Me!

KINGOFLONDON

Please Can Someone Avise Me,
I Have A Mortagae Of 168000, I Am Paying An Interest Only Mortgage Of 1200 A Month, I Also Have A Secured Load (39000) Which I Am Paying 300 Pounds A Moth For, So In Total Paying 1500 (and This Excludes Other Bills)
This Is Dfar Too Expensive For My Wife And I, We Cant Remortgage Because We Have A Bad Credit History, The Mortgage Company Cannot Help As They Longer Lend Anymore!
We Have Tried To Sell It , We Need At Leats 208000 To Clear The Mortgage And The Secured Loan, And The Estate Agents Have Now Said We Would Be Lucky To Get 190000 For It!
We Need To Know That If We Hand Them The Keys, Would This Still Be Classed As Reposseions?and If The Mortgage Company Sell It At Auction And Doesnt Get Enough Money For The Secured Laon, Will We Still Be Liable To Pay The Remanider? And Do We Still Have To Pay £300?or Can We Come To An Agreement Since It Is No Longer A Secured Loan?
Also If We Go Bankrupt, Does This Clear All Our Debts? How Do We Go About It? And How Long Before I Become Credit Worthy?
If There Is Another Solution Please Let Me Know!
P.s Renting Is Not An Option Either Because The Maximum Rent We Would Get Would Be 800, Which Means We Would Have To Pay The Difference If 700 Plus The Place We Would Have To Rent Which Would Put Us In The Same Situation!

boredofbeingathome

Sorry you are in this situation. is it worth asking on the mortgage board? I would also take advice from National debtline or one of the other charities..as it is a serious thing and you could be affected a long time by it. Also have you had a word with the mortgage company to discuss other options?
I do know that if they sell at a loss then you are liable for the rest of the monies..
Personally i would explore every option and even if you sell it yourself, then if there is a shortfall it is likely to be less than what it would be if they sold it and also they charge you other costs from what i have read..you could then make some arrangement.
Please take advice on it.

poorandindenial

Hi Kingoflondon

Welcome to the boards, sorry to hear you are having a rough time of it. The easiest way for us to give you advice is to put together a statement of affairs (SOA) there is a handy calculator for this at www.makesenseofcards.com and a button at the end that you can press which will format it for this forum. Then people can either identify where you can find the cash from or alternatively can help you make the right decision for your situation

If you don't feel like you want to bare your soul to that extent then get in touch with one of the organisations in this link: http://www.moneysavingexpert.com/loans/debt-help-plan#help
they are ALL not for profit debt help agencies, unlike private companies thay WILL NOT charge you for their services and have a higher success rate.

All the best for sorting this out

milliemonster

Even if you hand the keys to your house back this is classed as voluntary repossession so yes, they will sell the house and if there is a shortfall you will be liable for that. If you go bankrupt then this would be included in the bankruptcy but BR is not something to be taken lightly and would affect your credit worthiness for 6 years (and possibly much longer if you wanted a mortgage in the future)

You really need to get professional financial advice and in the meantime fill in an SOA and post so we can have a look to see where you could maybe cut back.

One thing though, you say your mortgage is interest only but what is the interest rate? it seems extortionate as my mortgage is similar to yours and I am interest only for £770 a month?

Lastly, please don't post with a capital letter at the beginning of every word as it makes it very difficult to read your posts

good luck!

KINGOFLONDON

milliemonster wrote: »

Even if you hand the keys to your house back this is classed as voluntary repossession so yes, they will sell the house and if there is a shortfall you will be liable for that. If you go bankrupt then this would be included in the bankruptcy but BR is not something to be taken lightly and would affect your credit worthiness for 6 years (and possibly much longer if you wanted a mortgage in the future)

You really need to get professional financial advice and in the meantime fill in an SOA and post so we can have a look to see where you could maybe cut back.

One thing though, you say your mortgage is interest only but what is the interest rate? it seems extortionate as my mortgage is similar to yours and I am interest only for £770 a month?

Lastly, please don't post with a capital letter at the beginning of every word as it makes it very difficult to read your posts

good luck!

Thank you, and I promise I wont write in capitals anymore!
I dont care about a mortgage anymore, because I want to live abroad with my wife who is czech.Bankrupcy is not nice, but if i do end up with a shortfall, i will be paying back the money I owe for the next 11 years probably, which will still affect my credit rating (but i will be paying money) where with the bankruptcy i wont be paying anything and lasts for only 6 years! what do you think?

Burlesque_Babe

Probably best to post on the bankruptcy board, there is no guarantee you won't have to pay anything back when made bankrupt. Bankruptcy should only really be seen as a real last throw of the dice to sort the situation rather than

"i will be paying back the money I owe for the next 11 years probably, which will still affect my credit rating (but i will be paying money) where with the bankruptcy i wont be paying anything and lasts for only 6 years!"