Are house price's going to drop further?

maliah

Hi,

I'm panicking a bit as my Dh wants to keep our house and not go BR, had booked a date for 20th feb, he thinks we might regret it, and of course we owe our house with approx 95k mortgage, we are 2 months in arrears, and have been looking into rentals with a few agents and it doesn't look good as they all have credit checks.

My dad may be able to lend me 1k to help towards the mortg arrears, what i'm trying to say is are the house price's going to drop further? as to be honest i think i might not be in negative equity yet, think the house has dropped from 110k down to about 95k which is what we have on mortgage, is that classed as negative equity?

sorry for rambling but i just don't know what to do for the best guys, so confused with everything,

Thanks

DON79

Hi maliah

If you can clear the arrears up and still afford to pay any mortgage and secured loans, then you may not lose the house. If it is borderline on the negative equity, it may not be worth the OR pursuing the matter. my personal opinion is that house prices are going to continue to fall, it won't recover for another year yet at least.

Can you get an estate agent to do you an independent estimate of value? say you want it for a quick sale to know what price you would get in the current market. And tell the estate agent if the house needs work in any areas too because this will affect the value.

Depends as well whether you are still happy in your home or whether you would like a nice fresh start somewhere else?

Hope this helps a little.

maliah

Thanks Don,

House needs a little work but its purely just odds and ends like decorating, nothing major like building.

Personally i'm not happy here, but with performance i've had with estate agents regarding rental i just panicking i'd end up with no where to live once the house get's repossessed.

On the other hand DH really wants to keep the house, and not go for br , just try and work things through. i just don't know

thanks for the post.

DON79

you have to do what is going to make you happy. and I know having a cloud of debt over you does not make you happy. would it take you many years to clear it with a dmp?

have you checked the website zoopla for an estimate of value? sometimes it is accurate, sometimes not. but it might give you an idea.

according to it, we have about £4k negative equity on my house and we do need some work (new roof :eek: ) so i think we would get even less for it.

can you get someone to act as guarantor for the rent for you?

Hope you can get it sorted out.

peachyprice

Hi Maliah,

I doubt going BR would be a mistake, but I do think rushing into moving out of your house could be.

I feel that house prices will fall even more, certainly within the next year. As you're alomost in neg equity as it is you have nothing to lose by staying put. The OR won't expect you to leave the house for the first 12 months, by which time you'll be well into negative equity and the OR will have no interest in your house. They won't make you give it up if there's nothing in it for them.

As for the arrears, you don't need to clear these before BR, your mortgage is one creditor you can continue to pay arrears to after BR.

I posted on another thread earlier that we've just made arrangements with our bank to pay off £5k arrears simply by not reducing the payments we make after the recent rate cuts, so we're paying the same as we have for the last 9 months, but the extra is going towards arrears.

You really don't need to make any decisions about your house before BR, even if you do stay but find it too much of a struggle you can still give up your house at any time and any shortfall will be included, even after discharge.

It really doesn't have to be the house or BR, you can do both.

HTH

maliah

Hi and thanks

We have a guarantor but agents are still quite negative one agent in particular, who have the monopoly of the rentals in the town i want to be in. They said that Credit checks are in place because LL's want them, as they don't want to be taking risks of getting someone who doesn't pay. Even with a guarantor they is no guarantee they will pay up either !!

Can i ask if we went Br and then stayed in the house, would we ever be able to remortgage it for a better rate as our discount rate ends in sept 09.

peachyprice

I don't know about remortgaging, what is your banks standard rate? It could be lower than your fixed at the moment by next year!

maliah

Right Don,

Used zoopla and its came back at 85k, the z road index at top said 94k?

which do i go by lol :rotfl:

peachyprice

£89,500!! :d:

maliah

ha ha Peachy!!!

AGGHHHHHHHH!! why is life soooo ****!

merry christmas though xx

silvano

hi maliah
I was in arrears on my mortgage originally due to paying debts and if I had continued i would have lost my house.I decided to take action and i wrote to all my debtors including home loans etc and told them that i could only afford £1 a month to each . this gave me the funds to pay my mortgage and i went to a solicitor who took it on from there as far as advising me how to go about it.
OK if you go BR yes you get a bad name but against this you keep your house and all yor debts are gone depending on circumstances.
My debts including everything such as home loans etc and credit cards amounted to 60k .
I SUBMITTED valuations from 2 estate agents valuations at 110000 with a forced sale value of 108000 in current climate.
My outstanding mortgage was 106500 to the O.R. in august.they let me keep my bank account with abbey which had £30 in it .
The tax on my wages is paid directly to me this i pay monthly to a firm linked to the O.R. until march 2009 as my earnings are not sufficient.
In August I received a letter declaring the O.R. interest in the proprty was £558 ,also stating if i had anyone who wished to buy the O.R. interest in the property.
My mother sent a cheque to the O.R FOR£558 and a cheque to pay for solicitors fees i think £221 aprox.
In September these were cashed and the O.R. interest in property now belonged to my mother and the deeds stayed in mine and spouse name.
In September I was sent a letter for possible early discharge if i completed new form of incomings and outgoings and everything satisfactory.
On November 18th i was discharged from bankruptcy.It has been less than 5 months.
All i can say is do everything O.R. asks of you on time.If you need house valuations play down your house,talk down the price ask for price on forced quick sale.I was direct with my estate agents telling them of my bankruptcy and pushing the quick sale route.This certainly shaved thousands off valuation.