Redundancy and repossession all in one week

Stressedcat01

I'm new to MSE and just signed up yesterday. I desperately need help - on Tuesday I was made redundant and as if that wasn't bad enough, when I returned home my flat had been repossessed and the locks changed.

Help! I know that I've got myself into a big hole and didn't realise how bad it was until the repossession. I feel so ashamed about it.

I've contacted my mortgage provider and they're saying that the only way I can get my flat back is to pay all the arrears & legal fees - that will come to about £10k. My redundancy package is more generous than some, so that will cover the arrears. However, I'm worried about this option as if I take back the flat, use most of the redundancy money and then can't find another job, I'll be in a worse position.

Can anyone help? I've contacted CAB and have a call back on Monday as they've said that they think I should be able to take back possession without having to pay all the arrears in one go.

Am also frantically searching for another job...Is it better to give up the flat, find somewhere to rent and have the redundancy money to tide me over while I find a job and to pay my overdraft off.

Thanks
desperately Stressedcat01

Emmzi

how much eqwuity is in your flat? I might be inclined to pay arrears and then sell it myself.

Stressedcat01

Thanks - I'm not sure - I need to check with the mortgage company. There should be a fair amount as I bought it quite cheaply and since then they have done major regeneration and built a new train station with access to London.

Emmzi

if there's any money in it, sell it yourself and fast, assuming your redundancy pack can buy you time. You will still have to repay any shortfall the lender has, and they may make many charges for selling it.

getmore4less

I think more information is required for people to comment on before you decide the best action to take

Any other debts?

Why were you repossesed?

If you could not pay the mortgage when you were working how will it be any different even if you get a job immediately.

bendix

getmore4less wrote: »

If you could not pay the mortgage when you were working how will it be any different even if you get a job immediately.

Couldn't, or couldn't be bothered?

How on earth can someone get into this pickle in a job and with interest rates at 400 year lows?

I'm sorry, but it's hard to have sympathy here.

Jayne070

He may have fixed his mortgage before the interest rates went down, some of us did ...

mrs_moneyspinner

Can I suggest that you find out about CAP money management courses through your local church - many now run courses - I recently went on one and have learned to budget - they won't make your debts disappear, but they will guide you in how you manage your finances and you will find genuine caring people who want to help you to help yourself. p.s.CAP means Christians Against Poverty

kiwi_sheila

Hi Stresscat01,

I don't know where you have got to and whether you have decided to pay the arrears, etc but when reading you post I recalled reading an article in the Big Issue about people who'd had homes repossessed following on from redundancy...

Banks often charge completely unreasonable (i.e. fictional) 'penalty' interest on arrears and it is possible to dispute this (and have it refunded if you have already paid out). I am not sure where you could get advice about this - the Financial Ombudsman might be a good start - or other people might be able to help ...???

islandboy_2

Try not to be such a Stressed out Cat! How you doing? Hope your situation is better than a few wks ago. Keep on searching for another job as from what I reckon you need something coming in. Who knows what a new dawn will bring? You may get a new job, have the redundancy money to pay off the arrears and still have some left to get down to Cornwall for a holiday before your new job and chill!! But the arrears are not going to go away are they, so you'll have to settle them eventually and I reckon the longer you leave it the more interest you will have to pay. Remember Martin Lewis advises 'pay off debts before you start saving' Have you got any family or friends who can help you out? You did a good and positive thing getting onto this website as MOST people are helpful and sympathetic. Very best of luck!!!