Northern Rock Selling House 55k under asking price!!!

Durhamborn

Sadnewmum wrote: »

My home has been repossessed, and Northern Rock have put it back on the market 55k under the asking price... can they do that. I have only just found out from looking through our local paper. It would leave me 60/70k in debt if they do that - will costs etc.

I feel suicidal.. I don't know what to do.
Please help

OK,firstly your OH has no tie to the debt.He can walk away.He just lives there.The debt is on the people who bought the property,and borrowed the money.ie you and your mum.
Your mum isnt your mum in this.She is simply one of two people who bought an asset with debt.The house is not relevant.Its the debt.
If you go bankrupt the bank will chase your mum for all the debt.The debt isnt secured on her house,but the bank will apply for a charging order on it instead,so then it will be.
If you owe 70k and she has 70k equity it will become theirs.They can proceed to repo your mums house then at any point they choose.

So as your mum has assets i presume are larger than the 70k the debt will need to be re-paid.

As you stated you had no other debt in my opinion bankrupcy is not an option.It would achieve nothing.

What you need to do is accept the debt needs paying,or your mother will at some point lose her house.You have 3 living with her.I think you all need to agree to pay say £200 a month each ie £600 a month to clear the debt.Offer this to the bank once the final debt is established.This should hold them off putting a charging order on your mothers house.

If you dont between you do this im afraid they will in time repo your mum.

Hard but the fact is you and your mum borrowed too much in the hope youd make money,that the house would rise more than the price of the debt.

It didnt.You failed to pay the mortgage and so its a repo.The remaining debt is yours and your mums.Im afraid the only way out without your mum ending up with a repo of her own is to pay off the debt.

Only slight option might be for your mum to re-mortgage for say £30k and offer NR that as full and final payment.

The brutal fact is,your mum owes 70k to northern rock and has assets worth that.Tax payers are bailing out all this irresponsible borrowing.She owes that money and it will be paid back because she has assets.

You must sort out a payment plan to clear the debt,or your mum will lose her home.Its as simple as that.

prowla

Walter_J wrote: »

My sympathies are with you. Yours is just one of millions of families who have been conned into believing the lie that property prices are a one-way bet.

....

Good luck.

What he said - the government and the banks have colluded to set up and perpetrate the housing bubble, and now it has burst.
Sadly, you have been conned and they don't give a monkeys.

PasturesNew

What figures are we talking about here? Incomes, mortgages, properties?

It helps with ideas if some meat is put on the bones.

devils_advocate

OP, you mentioned in a previous post that after buying the house, you had a few good years and then interest rates went up and you had to sell things to keep afloat. If this is the case, why is there no equity left in the house, as a house bought a number of years ago will still sell for more than its original purchase price.

bank_of_slate

Sadnewmum wrote: »

Ok so I have had my hot bath while OH looked after little girl. Think most of the bath water was tears, had an hour getting myself together on the bed. Spoken to my Mum and OH, they are both shocked at NR being so drastic with the asking price. They are both being lovely - but I just don't think it has registered to them how much trouble I am in.

My Mum simply said 'they can't get blood out of a stone' but I'm sat there thinking.. Mum they could take your house, your car... everything you and my Dad worked so hard for. (My Dad sadly passed away a few years ago).

Jaggers my situation is we moved in with my Mum last January, to try and save money so we could pay the mortgage, we made the final payment in May. So poor Mum has a house full, and I am married, with child.. living in my old bedroom with a looming debt that could potentially take my Mum down with me.

I've emailed CCCS as still can't get through on the phone, heard nothing back yet, but no doubt there busy

Thanks again everyone - you really don't know how much your messages mean x

Hi sadnewmum and welcome to the forum,
1, keep trying CCCS, the fact that they are SO busy means that there are thousands of people in a similar situation to you. You are NOT alone in this.

2, Get help and support from everywhere you can, email the samaritans, keep posting on here and empower yourself with the research and knowledge of your rights. Keep talking to your Mum, she'll be worried about you far more than the situation!

3, You are bound to be overwhelmed, upset, angry etc... you are effectively going through a grief period for your home as well as coming to terms with being a new Mum and all the hormones that go with that.

4, They cannot have what you have not got! keep repeating this to yourself.

5, Write down things and keep a diary to get things out of your head. It'll help to avoid all this swimming round in your mind all the time and enjoy your new baby- that's what matters more than anything right now.

Just know you will have lots of help and support on here whenever you need it!
...Linda xx

Scabs

devils_advocate wrote: »

OP, you mentioned in a previous post that after buying the house, you had a few good years and then interest rates went up and you had to sell things to keep afloat. If this is the case, why is there no equity left in the house, as a house bought a number of years ago will still sell for more than its original purchase price.

In jan 2008 the standardised average house price was 196 thousand, now in jan 2009 the standardised average house price is 164 thousand (Halifax figures) this may be the reason.

Mistymaid

I'm not going to offer any financial practical advice - but, since this whole financial mess (not just yours) has basically had a political foundation, isn't it possible to contact your MP and scream, PRESS!!!!! into his earhole should you not be able to sort things out?

I say this because it's all like watching a nasty re-run of the early '90's for me. We nearly lost our house, and not because we'd bought out of our price range, nothing like, but because the interest rates had crept (dashed?) upto 15%.
My sister wasn't as lucky, she had a separation to deal with at the same time and the mortgage company came after her and not her partner. Her house ended up being sold at auction for half what she'd paid for it - and after she'd done extensions and renovations.

It was a killer for all involved, but she played the game, contacted all the right people, made all the right offers etc. Nothing really worked and she ended up declaring bankruptcy.

That aside, she did recover, although it was a terrible couple of years, and she recovered from the bankruptcy thing. But it always occured to me that playing the game, playing by the rules, never really got her anywhere.

NR have caused an awful lot of people an awful lot of misery one way or another - and you can, and I have, argued that some people got themselves into a very silly situation, but since I've been there, done it, bought the t-shirt (read the book, had a bit-part in the film!) found that support and constructive advice are more important.
Plus the banks and politicians are complicit in this mess and they need to start earning their money rather than just talking a good fight.

A woman and her mother cast into the depths of indebtedness by a 'would-be' bankrupt bank ... sounds like A1 publicity for you and a major headache for the powers that be!

Sir_Numpty

The position I believe is as follows.

After the sale of the property Northern Rock will look to recover the shortfall from the guarantor (your mother). They may well seek a charging order against her property therefore your mother will need to make an offer based on her income and other resources to pay NR over a period of time. Interest is frozen. It is very unlikely that a court would give the chargee the right to sell the property from underneath her unless the home is considerably in excess of her needs.

Therefore your mother may have to drain some of her savings to help pay the NR and then make a reasonable monthly payment out of her income to deal with the rest.

If she at this stage diverts her capital to put it out of the reach of her creditors technically this can be overturned. However as she is not going bankrupt it would be difficult for any forensic analysis of her finances to take place.

In the last recession a friend of mine and her partner were repossessed and some 4 years later the mortgagees caught up with her and they owed £57k between them.

The mortgagees were not keen on monthly payments and settled for £5k in full and final settlement. I don’t think this will apply in this case because of the guarantor but the idea of a government controlled bank making thousands bankrupt would be seen as little less than spiteful and therefore is not going to happen.

AJL_2

Don't do anything stupid! You have your family and health, everything else is a secondary consideration. This is, after all, only about money - money which banks create out of thin air so they haven't even earned it. There will be light at the end of the tunnel and things will get better even though it may be some way off.

You need legal advice if you haven't already got some. Are you in the North East? If so, I can point you in the direction of free legal advice and maybe even getting your case dealth with for free.

Sadnewmum

Morning everyone,

Ok so spoken to CCCS and the story is

1) They cannot force my Mum to sell any of her assets of enforce bailiffs
2) They cannot force my Mum to sell her home OR repossess it
3) They cannot place a charge order on the house if we are making some kind of repayment back to them every month...

YEEEEEEEEEEEEEEEEEEEY!!
My Mum's home and assets have been the main worry, as long as the don't touch her then I'm happy!!