Where do they stand?

taplady

Hi ! my friend and her husband took on a huge 100% mortgage about 2 years ago and now they've had a big drop in income and can't afford to live there anymore. I know for a fact that they lied about their income to get the mortgage. I'm pretty sure they have other loans and credit card debt too!
well to cut a long story short they arranged lower payments for 2 months then put the house on the market hoping for a quick sale then moved into a rented house - getting another loan to pay the deposit:doh: they have been pretty much living on the credit card as well!
I recommended this site to them and also the CCCS but they've not done anything about it yet:mad: :wall: I just dont know what will happen if they cant sell the house
Anybody have any ideas where they will stand if they cant sell?

black-saturn

It will go into the property of the building society/bank and they will auction it off to pay the debt. They will have to seek other housing.

taplady

black-saturn wrote:

It will go into the property of the building society/bank and they will auction it off to pay the debt. They will have to seek other housing.

They've just moved into a rented house £500 a month compared to £1000 mortgage but they left a beautiful housing association house (rent£75 a week) to do this!!!

They will still obviously be left with debt after the auction so are they likely to be made bankrupt if they cant pay? or will they be able to make arrangements to pay?

dudleyboy

Hi taplady. Unfortunately i'm sure there's many people in a similar boat. It seems the only way for first time buyers to get a foot on the ladder nowadays is to take 100% mortgage and to lie about their income (I certainly know estate agents have hinted heavily towards exploiting / turned a blind eye to this self-certification loop hole - it seems to be how they've managed to maintain overinflated prices for the last 3 years )

It does sound like they could be in trouble if they don't become more proactive... and I think it's the fear of facing their debt problems that's keepin their heads in the sand... not the fact they're not acknowledging they have them.

As unethical as it may be... it might be worth entering their email addresses into the subscription form for Martin's weekly email... then telling them afterwards that you've done it. If they haven't taken your advice about coming here then hopefully the direct approach will have more of an effect. I'm sure they'll thank you in the long run.

taplady

Thanks dudleyboy! I hope they see the light ! My friend has been talking about seeing the CAB for the last 3 weeks but doesn't seem to see the urgency. The two months lower payments ends at the end of this month so they might have to face it then when they have rent and mortgage to pay. lets hope they have their lightbulb moment soon!