Am I in trouble?????

Fleeced

Hi

First time posting on this site although have been reading for a while, so please be gentle.

Ok. I live with my husband and we have a joint mortgage on our house which is up to date. However my hubbie also owns a house in his own name which is really killing us financially. We are paying both mortgages at he moment and the other house has been on the market for what feels like forever but what I want to know is if the worst comes to the worst & his house was repossessed how would that leave us with our own home.

Hopefully it won't come to that but I just want to know what our options are, so that we can deal with it.

Thanks in advance for your help.

caracal_77

What's the LTV on the house he owns? can he sell at a lower price to get rid of it? Need to give us some numbers to work with.

silvercar

Houses will sell if the price is right. That could well mean reducing the price to a level that will generate enough interest to get a sale.

If your husband's home was repossessed, his credit rating would be damaged. This could make it difficult for you both to remortgage to a good deal with a different lender, if that is your plan.

If the repossession and subsequent lender sale, produced sufficient money to clear the mortgage there would be no other effect on your home. If however there was money still owing the lender could pursue your husband to make a payment plan to clear the debt. They could apply for a charging order on your jointly-owned property for this debt.

Fleeced

Hi

Thanks for the reply
We remortgaged our own house to buy the site and have a 118,000 mortgage on the new house. When he first started buying the site the figures did stack up but the site purchase was very long and drawn out and by the time the new house was complete the housing market had well and truly slumped . The house is valued at 200,000 but is willing to accept the 118,000 so that he can get rid of mortgage and all memory of the sorry business. The house is beautiful and people are interested but no one can get a mortgage.

Thanks again

MrMicawber_2

Things to do as well as reduce your asking price are talk to your husbands lenders and depending on the product you are on you / he may be able to increase the term or convert from repayment to interest only and both of these will reduce your monthly payments. NOTE these are only TEMPORARY measures which will reduce your monthly payments while the property is being sold.

It is likely that you will get better value reducing your asking price than being repossessed plus all the associated credit rating isues mentioned above. moutgoing lendth

Trollfever

The house is valued at 200,000 but is willing to accept the 118,000

Put it up for auction and you will have people fighting over it.

Fleeced

Hi

It was entered into an auction at the start of Oct but the auction was cancelled due to lack of interest!! Not sure if there wasn't enough houses listed or if they can estimate public interest, but the auction company still show no sign of another date.
Please understand that we are not just sitting back and letting this happen to us we are trying all possible avenues but we are met with a brick wall everytime. Hubby contacted lenders and because he is not in arrears they are not interested, so that is why I asked the question on here. If the other house does go into arrears do we stand to lose our house.

Thanks again for replies.

RobertoMoir

Trollfever wrote: »

Put it up for auction and you will have people fighting over it.

With the greatest of respect to the OP, this depends on how realistic the valuations are, how the location is doing, etc.

PasturesNew

Is there a Rightmove link to it?
What town/area is it?
What sort of house?
When was it 'valued' at £200k?

You've certainly got enough slack in your finances to be able to get ahead of the market and sell it so you can move on with your lives.

Trollfever

A current thread about property auctions:

http://forums.moneysavingexpert.com/showthread.html?t=1389477

EssexHebridean

You mention people who have been interested in the property having difficulty getting a mortgage - I assume that this is nothing to do with the property, just a sign of the current market?

Good luck with your situation, anyway.