sell house and rent back

cfubar

Hello , we are in quite a bad situation and debts are piling up , as is morgage arrears , Im considering as an option selling my house to one of the companies ive seen that rent back to you.

Im not even sure if i can , i bought the house from the council 18months ago and regret it now , i love my house but just cant afford the morgage. I really wish id just carried on paying the council rent. we are paying £600 a month morgage at around 9% interest with southern pacific, our fixed rate ends in march next year and ive no idea if it will go up or down, currently arrears stand at around £2000.
we also have a 5 year secured loan (4 years left) with welcome finance - we are paying £30 per week on that.
also other debts include council tax arrers from up to 3 years ago (these are now under control and am paying an extra £10pw)

McKneff

You could sell your house but you would have to pay the council some of the discount back.

Selling houses to these companies is not recommended as they will give you way below market value. There is also the risk that

A. They can ask you to move out at their will

B If they stop paying the mortgage or go bankrupt youre out on your ear.

Why not post a SOA on here to see if folk can help you keep your house.

opinions4u

Don't forget you will probably have to repay some of the council discount offered under the RTB scheme if you sell.

AlwaysWorking

Hi. The type of companies you mentioned generally only pay around 70% of the value of the property and as McKneff mentioned, they can ask you to leave after your lease runs out if they want to sell the property and make their profit....so not to be recommended.

You would be best to contact the council to see how much discount you will have to pay back. If selling on the open market would give you enough money to pay your mortgage, pay the arrears and the council you could consider that route and then rent.

If you post your SOA on the 'Debt free Wannabe' board they will help you to see if there is anyway you could cut back to allow you to get things sorted.

Good luck!

Mrs_Bumble

Contact the council that you bought from they may be able to offer some assistance, as I believe that they can in extreme circumstances.

Also have a look at this leaflet and contact the agencies in here for advice

http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

Start with the council though.

**Upsy_Daisy**

Make an appointment to see a Housing Options Adviser at your local council

Ask the council if they will buy it back - or get a Housing Association to buy it back for you

They may do this especially if you are going to present as homeless and have children - it's generally cheaper than rehousing you

Alternatively ask about Mortgage Rescue Schemes

Contact the CAB - to access MRS you will need a referral from CAB

Contact Shelter

I would seriously NOT recommend these buy/rent back companies to anyone - you will be homeless and quite likely deemed intentionally homeless by the council once they kick you out (as they surely will)