Should I be wary of private sale?

zzzLazyDaisy

Have you spoken to the CAB?

They should be able to give you advice and information about rent back schemes, but also they may be able to help you to find a way through the debt problems.

Apologies if you have already discussed this, as I haven't read your other thread

pawpurrs

If your not working, then if you sign on to JSA, or IS then after 13 weeks, the goverment would pay the interest on your mortgage at a current rate of 6.5% for up to two years, would this help you to then pay back all your debts, get on the right foot again, and enable you to keep your home?
Another option if you have equity and havent allready done so, then in the meantime you could prehaps look at taking a mortgage holiday for a while?
This scheme is differnet to the mortgage rescue scheme.

Doozergirl

I've read your other thread and I think it's imperative that you try to find another way around this. You have equity and your mortgage is going to be less than any rental payment so in the long term i think it's better that you try to manage the debt than sell your family home and put yourself in an even more insecure position for the long term.

I don't have the advice to ffer but it sounds like other people do so please exhaust every avenue before you sell up.

homeworkgirl

Hi everyone, many thanks for your replies. Unfortunately I no longer have internet access at home as unable to pay bill, but a kind friend is letting me use hers.

Found out a few things about the individual who was interested in buying the house which I didn't like so that's gone by the wayside also now.

Also spoke to two more sell and rent back companies who surprisingly both told me that it wouldn't be the best solution for me as in effect I would only be selling for the sake of raising max of £10k to sort out debts and as they are unsecured anyway, then I should be able to get help to manage them. I totally agree but what's the alternative when you have basically run out of money? My benefits are spoken for before they even arrive and I have hardly any money left for food or anything. Equity release would definitely be my solution but I can't get it as they want the mortgage paid off first (£50k) and I can't raise enough to pay that off due to my age.

Basically if I could raise £5k it would get me out of trouble but how can I raise it if I can't get equity release and can't remortgage or afford loan repayments because I am out of work? It's a vicious circle.

And all because my beloved partner died two years ago.

Nosht

Renegociate the debt/loan repayments.
If you write an honest letter outlining your outgoings & income & offer a LOT less (something that you can easily afford, NOT a figure that they suggest) than you are currently paying then the firms should look sympathetically at this arrangement.
You can offer a lot less than you are paying as the only alternative is the sale of your home which will not raise much extra. Try to avoid an equity release as this will entail increased debt.

Regards,

N.

homeworkgirl

Nosht wrote: »

Renegociate the debt/loan repayments.
If you write an honest letter outlining your outgoings & income & offer a LOT less (something that you can easily afford, NOT a figure that they suggest) than you are currently paying then the firms should look sympathetically at this arrangement.
You can offer a lot less than you are paying as the only alternative is the sale of your home which will not raise much extra. Try to avoid an equity release as this will entail increased debt.

Regards,

N.

Hi, thanks for your reply. Not sure I understand the bit highlighted in bold though as the sale of my home would raise a lot extra wouldn't it because there is a lot of equity in it?

carefullycautious

Hi sorry to hear about your problems. Was your partner/husband not insured to cover the mortgage if anything happened? I go along with the other posters who suggest trying to pay off your debts and keep your home. Are you working, could you take on more work/ or try to get lodgers. If your near a hospital maybe student nurses if you are worried about strange men in your home. If this was me I would be trying my hardest to hang onto my home as once in private rental you could in effect be moved on. I think you would benefit from taking advice on your current debt problem and how this can be managed. Good luck

Fire_Fox

You may be eligible for a Debt Management Plan - contact CCCS or Payplan both of which are charitable organisations (free service). Hopefully you have had the same advice plus some moral support on the DFW board, they really are a great bunch over there!

zzzLazyDaisy

information about sale and rent back schemes..........

http://www.lovemoney.com/news/the-property-ladder/watch-out-for-this-massive-scam-3615.aspx?source=1000020

homeworkgirl

You will see from my thread on DFW thatI am getting help from CCCS to try and make my debts manageable rather than sell the house. They have said that because my debts are unsecured ones andI have so much equity in my house, I definitely ought to try and hang on in there even though it's going to be very tough carrying on with such a tight budget. However, my first priority is still for my daughter and I to stay in our family home and I am determined to do everything I can to avoid selling as even if I were lucky enough to be able to stay there as long as I wanted with a Sell and Rent Back Company, I would never truly feel secure and would be worried every 12months whether or not the tenancy would be renewed.