accepting help from parents and limiting their losses

mysuni

hi,

i have got a mortgage for about £63k and a secured loan for £73 on my property. The secured loan is through first national/GE Money and the current apr is 12.5% and the amount i owe is now much greater than i started with 4 years ago. This has led us to fall 6 months in arrears with both payments.

I have finally had to come clean to my parents as i decided to sell the house and pay both lenders off. my parents feel that it would be better to limit my losses for them to buy the property and then i can pay them £600 a month. Both lenders have agreed that they will give us 3 months to sell the house. Now as i feel bad that my parents could end up with a big fat loss on their hands i need advice.

The house is in not in great decorative or working order at the moment due to lack of funds. would i be better off getting estate agents in with the house looking its worst for low valuation and then go back to lenders with that as requested and see if they will accept a full and final settlement for a slightly reduced amount? to complicate matters i have £40k owing on ccs which have all been defaulted.

any helpful comments would be appreciated.

RAS

What is the house worth?

have you taken advice from a debt charity?

You may for instance be able to go BR and stay in the hosue, if the debt payments are low enough.

How much would it cost to rent similiar locally?

mysuni

cccs told me i had a monthly deficeit of £829 a month. they suggested that the only way out would be to sell the house and to contact them when things changed as until they couldn't suggest anything else. the neighbours house which is smaller but in better decorative order has just gone on the market for £215k.

local rental properties of a similar size would be approx £900 pounds.

what debt payments do you mean? sorry to be dumb and thanks for the reply.

Fire_Fox

Can you actually afford to pay your parents £600 a month, every month, for ever after? Really what you are doing is taking out a consolidation loan, albeit with your parents as banker. I am guessing from the size of your loan, plus the Credit Cards you have consolidated before and it's not been successful? Can you post up a Statement of Affairs so we can see a fuller picture?

RAS

mysuni wrote: »

local rental properties of a similar size would be approx £900 pounds.

what debt payments do you mean? sorry to be dumb and thanks for the reply.

how much is the mortgage and how much does the secured loan cost per month?

better to do a full SOA so we can see what the issue is. see here http://www.makesenseofcards.com/soacalc.html

System

I think selling the house to your parents is not a bad idea so long as you can afford the repayments? That way it stays in the family. But only if you can afford to repay your parents. What is the value of the house?