Repossession.

Sammy3008

Hi all, firstly we are new here, so hello to everyone :hello:
Ok we have had our property on the market for the past 7 months, we are so desperate to move from here, and our last resort is repossession.
The reason's behind the move, well there are a number, we are struggling to meet mortgage payments every month (on Interest only for one year now aswell :rolleyes:) my hubby works in Derby, and the commute is just getting far to much, we HATE the area, and don't fit in at all well, we've had our recycle/garden bin set alight, which took some of the hedge with it!! We've had someone trying to break in at 3am in the morning, neither of us, have slept well since we've been here, its just a nightmare!!! Money 'is' going to have to be spent on the house i.e, needs a new kitchen/bathroom, but its liveable at the moment! and to top it off we have a mortgage on it for £75028.00 and the house was valued at £65000 last wednesday

Because of the position we are in, regards what mortgage we have on it, our limit for offers is £79000 and in the current climate, who is going to pay that!!
So we're after all the advice/help we can get....
If I'm right, with a repossession, we will end up with the shortfall, but we're already with a Debt Management Company, for loans etc, have spoken to them, and we may be able to put all our debts (inc shortfall) onto a IVA.

But all advice appreciated. Thanks.

LindsayO

You might be better dropping the price and selling it for way less, you would still have a shortfall, but you wouldn't have a repossession, so that might make getting finance in the future easier

Sammy3008

LindsayO wrote: »

You might be better dropping the price and selling it for way less, you would still have a shortfall, but you wouldn't have a repossession, so that might make getting finance in the future easier

If we were to sell the property for £65000 or there abouts, the trouble is, we'd still owe around £10,000 on the mortgage, surely Northern Rock wouldn't sign the property over to a new owner when there's still money outstanding on the mortgage?

Pee

It would effectively be a personal loan to you that you would continue paying back.

You need to think carefully about this, as it will effect your credit rating and it is possible that banks will refuse to lend to people who have had properties repossessed in the future.

Have you looked at your income and outgoings and any benefits and seen whether you can make any savings there?

Would the rent closer your OH's work be manageable?

Sammy3008

Pee wrote: »

It would effectively be a personal loan to you that you would continue paying back.

You need to think carefully about this, as it will effect your credit rating and it is possible that banks will refuse to lend to people who have had properties repossessed in the future.

Have you looked at your income and outgoings and any benefits and seen whether you can make any savings there?

Would the rent closer your OH's work be manageable?

Hi,
Thanks both for your replies :-)
Regards our credit rating, that has already been affected as we have defaulted on loans we have, but they are being sorted out by a Debt Management Plan that we are on.
We have looked at our incomings/outgoings and we are most definately spending more out, than we really have coming in!
As for checking benefits, I'm not really sure where we will find this information, I have looked on the Direct Gov website but don't really know where to go from there!

Desperate_Housewife_2-2

Hi sammy3008, welcome to the forums! Sorry to hear about your predicament but I agree with other posters, try and avoid reposession as it will affect your future credit rating. Also the house may get sold for way less than what you can sell it for yourself.

The way I see it is...
option 1 stay where you are wait till the market picks up then sell at a profit.
option 2 stay where you are and try and sell even at a loss and take out a personal loan to cover the shortfall
option 3 allow repossession which I would avoid.

In the meantime, why not post a statement of affairs on the debt free wanabee board and see if the guys over there can give you tips to reduce your outgoings. Could you take in a lodger to help pay the rent or save up some money? Could you do overtime, get another job, it all helps. Cancel old direct debits, unnecessary outgoings (sky tv/ mobile phone stuff etc) change utility suppliers. The guys over there will help, they are very nice.

It may help to do a budget anyway and try to project your income/outgoings for a year and do a short and long term plan. Things may seem 'do-able' if there is an end date, even if you don't like where you live it won't seem as bad if you have a 'get out' plan.

Good luck and let us know how you get on

Sammy3008

Thank you so much for all your advice.
Just a little update, I have contacted our lender this afternoon (Northern Rock) and explained the situation to them, i.e the property only being valued at £65,000 and if they can't help us, we may have to look at going down the voluntary repossession route. I am waiting for a call back from there shortfall payment team, within the next two days, and they will talk me through what they can advise, or help us with :T
Oh I do hope there'll except that the property is only worth that, and agree for us to sell at that, and arrange a payment plan, so we could pay the remainder of the mortgage back to them....Fingers crossed, will update when I know more

Sammy3008

Desperate_Housewife wrote: »

Hi sammy3008, welcome to the forums! Sorry to hear about your predicament but I agree with other posters, try and avoid reposession as it will affect your future credit rating. Also the house may get sold for way less than what you can sell it for yourself.

The way I see it is...
option 1 stay where you are wait till the market picks up then sell at a profit.
option 2 stay where you are and try and sell even at a loss and take out a personal loan to cover the shortfall
option 3 allow repossession which I would avoid.

In the meantime, why not post a statement of affairs on the debt free wanabee board and see if the guys over there can give you tips to reduce your outgoings. Could you take in a lodger to help pay the rent or save up some money? Could you do overtime, get another job, it all helps. Cancel old direct debits, unnecessary outgoings (sky tv/ mobile phone stuff etc) change utility suppliers. The guys over there will help, they are very nice.

It may help to do a budget anyway and try to project your income/outgoings for a year and do a short and long term plan. Things may seem 'do-able' if there is an end date, even if you don't like where you live it won't seem as bad if you have a 'get out' plan.

Good luck and let us know how you get on

Mfi3 no. 88:
Balance Jan '06 = £63,000. :mad:
Balance 08.06.09 = £7,500.
'All that is necessary for the triumph of evil is that good men do nothing' Edmund Burke

Hope for the best, plan for the worst.

How have you got your balance from £63000 down to £7500 in the space of 3 years?

Floxxie

This is the mortgage-free wanabee board where there are several challenges running, one of them to clear your mortgage in three years. If you click on Desperate Housewife's name, and then 'view other posts' (or similar words) you'll be able to read DH's suggestions and ideas of paying off her mortgage. It is very impressive.

Desperate_Housewife_2-2

Sammy3008 wrote: »

Mfi3 no. 88:
Balance Jan '06 = £63,000. :mad:
Balance 08.06.09 = £7,500.
'All that is necessary for the triumph of evil is that good men do nothing' Edmund Burke

Hope for the best, plan for the worst.

How have you got your balance from £63000 down to £7500 in the space of 3 years?

Well, how long have you got?!

Its been a long project, first we had to clear up some old credit card debt, then we tackled the mortgage, bit by bit, chipped away at it, no saving was too small. I did a bit of carpetbagging back in the good old days of building societies, then stoozing using 0% credit cards of around 45 grand to get the balance down. I got rid of my car and got a bike, cut down on everything we didn't need, did some extra hours, meal planning, grow our own veg, charity shops, jumble sales, car boots, quidco, pigsback vouchers to pay for toiletries, joined the mfi3 challenge which ends next March. Changed utility providers, bought a remoska to cut down on energy costs, used freecycle, changed my mortgage provider and basically stuck at it.

Could I make a suggestion? How about trying to get some financial advice from someone other than your mortgage provider? They will be thinking of their own business before yours I reckon and it may help you make a more balanced decision if you got some impartial advice.

Good luck

StuartGMC

DH - excellent progress and breif summary of a sustained action focused plan

Sammy - do you and your OH have a complete and very detailed breakdown of all your expenditure and anticipated costs. This has to be the basis of understanding where you are now, and what you can look to improve upon. Knowledge is power, and if you can gather the data you are much better placed to discuss with various stake holders than to have guesses at the baseline. If you haven't got a spreadsheet for that, send me your e-mail address by PM and I'll send the household budget spreadsheet I've shared with others here.

Best wishes in your next steps, but take them carefully and as advised by the others above, do so with input from people who can guide you.