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

Sadnewmum

Hi Everyone,

I am so concerned with the advice from CCCS after reading through everyones posts (thank you). I am without a doubt going to get further advice from the National Debt thingy (sorry I can't remember name - but its on this site somewhere) Anyway I will be calling them first thing Monday and will let you all know what they say. It's thrown my head again.

People are saying I have been a bit sketchy with facts, sorry about that, I literally don't know if I am coming or going at the moment.

So my story in full, warts and all...
Bipolar sufferer with daughter of 4 months has had house repossessed with no equity in it, after vacating it months earlier to save money to make the mortgage each month until hopefully it was sold, but we had no offers in 7 months and couldnt stretch anymore.. literally sold every thread in there, every engagement ring to make a payment, honestly held hands upto Northern Rock. House repossessed in October, now back on the market at 95k when 3 independant estate agents valued it previously at 150k. The house is in immaculate condition and finished to the highest standard. Only names on the mortgage is mine and my my Mums. My Mum put her name to it so me and my husband could secure the mortgage in the first place (long story of ex's divorce mean't we couldn't put his name on). Mum has own house, with equity in it.

God only knows I wish I could turn back time and not accept the offer of my Mum, who was only trying to be helpful. Now I could take everything from her, everything she has ever worked for. I will do anything possible to prevent this. So please any further advice would be great before I lose my sanity!!

Thanks all xx

gizmo111

tomterm8 wrote: »

The problem is the law is changing with regards to charging orders, so that even if a payment arrangement is in place, in a couple of years time a charging order will be obtainable.

2. You need a qualified solicitor to investigate the terms of the guarantee. English law is complicated, and you should not assume the guarantee is legitimate. There are cases where guarantees have been invalidated because the correct advice was not given at the time the guarantee was made.

quote]

It is not a guarantee the mortgage is in the mums name, so the OP going BR would not help the mum.

post #27

My husbands name isn't on the mortgage, just me and my Mum. My Mum has a lot of equity in her house, but I couldn't bare them to take that from her.

Sadnewmum

The mortgage is just in mine and my Mum's name.
You know they haven't even contacted her at her address, which I find odd.

neil9327

Sadnewmum wrote: »

God only knows I wish I could turn back time and not accept the offer of my Mum, who was only trying to be helpful.

You have fallen.
You will rise again.
You've both lost £65,000.
Chin up.

Durhamborn

nova wrote: »

Thanks, thats a really bit of useful advice. l know you dont want to hear my sob story but OH used to earn the funds to cover these things no problem but now, we're on benefits (hopefully short term) as he's got to have an unexpected op.Obviously lm willing to work to take over as it were, but thats easier said than done at the moment, its not that we dont want to pay its just finding a solution for the moment when hopefully things will pick up.

In that case keep them informed.Pay just above minimum.Contact is key.As soon as your fiances improve phone them and tell them your now about to resume normal payments,or higher payments than you are now.
It gets tricky when you have equity but no income.Thats tempting to them to place a charging order before others do.or before the equity goes.
In your case i think youl be ok.You want to pay,and will when your finances improve so that suits the creditor for now.
The ones who get stuffed are the ones who think sod them im not paying then find the debt is secured on their home.
This will happen more and more as its a very misunderstood part of debt law.

Again i think youl be ok for a good while but my best advice would be first dont miss any of the lower payments,and when finances improve inform them straight away and pay as much as you can afford.

tomterm8

gizmo111 wrote: »

It is not a guarantee the mortgage is in the mums name, so the OP going BR would not help the mum.

post #27

Oh, there have been other posts where she described it as a guarantee. In any case, my advice is still to get qualified legal advice as to the terms of the mortgage. There are still a lot of permutations as to what rights, if any, they have to go after other assets. Some mortgages are recourse, but some are not. The worst a lawyer can do is confirm the posters mother is liable... in which case, they will have to look at their options.

These options include bankruptcy, IVA, a debt repayment plan and / or negotiating a final settlement. They may also include a right of action if the bank intends to sell at below fair market value. I'm not convinced that the bank is selling at below fair market value, since the house was on the market for 7 months prior to reposession.

In any case, it's not impossible to minimise the damage caused. But getting legal advice is a vital first step ( and not necessarily from the debt charities, you need a solicitor).

gratefulforhelp_2

Sadnewmum,

you are under huge pressure and with such a little baby, you need to go easy on yourself. I disagree that you don't need hugs, this site is excellent for moral support, and you need some of that too, in addition to the cold hard logical kind of factual advice that you are getting.
when it comes to choosing a solicitor, there are solicitors fab and solicitors mediocre, and frankly we have had one that was a liability, choose carefully!

Good luck.

nervousmother

Bankruptcy is not really an option for sadnewmum. Yes she could go BR but then all of the debt would fall on her mum, as her mum has assets (her own house) she would loose everything she owned.
Take legal advice. I think your best bet at the minute is just to wait until the house has sold, Saving like made meantime (as you have stopped the mortgage payments) Once it has sold offer northern rock a sum as 'full and final settlement'

barnaby-bear

Sadnewmum wrote: »

God only knows I wish I could turn back time and not accept the offer of my Mum, who was only trying to be helpful. Now I could take everything from her, everything she has ever worked for. I will do anything possible to prevent this. So please any further advice would be great before I lose my sanity!!

Thanks all xx

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml
A £65k mortgage over 20years at 5% will cost £430 a month - if NR converted the negative equity to such a loan against your mum's house this is the kind of level of repayment they'd be seeking. If you are living there on a peppercorn rent in time and with inflation it's likely you'd be able to make significant overpayments. It's a large debt but the repayments might well be manageable and it might be worth exploring the monthly costs of servicing the debt so they are not forced to pursue the lump sum. If you and your partner met the payments between you then your mum wouldn't lose out on her equity.

Bf109

What does OP mean when she says the house in on at £55k "below asking price"?

Who decided on this asking price and when?