Govt Mortgage to Rent Scheme/Will it save my house?

kepar

we will still incur a shortfall, but hopefully it will be less than £10K, rather than the potential 30-40K if repoed. The mortgage lender has hinted that they may wipe the debt, although not holding my breath on that one.

Can I ask what is your plan, it they won't wipe the debt, obviously you are going through a hard time, but what are you going to do about a shortfall?
You have a certain time to sell, house prices are falling in most areas, and if buyers find out you need to sell, they won't offer top dollar.

Why are you waiting to go bankrupt, you could find somewhere to rent, give the house up for VR and have no more worries.

I hope you can sell, but I see problems ahead.

sillygirl73

Kepar, we are waiting to go bankrupt as so far have not had any pressure from creditors yet. We have been paying £1 pm token payments to them all for the last year and have already negotiated this agreement for the next 12 months with some of them (with help from CAB). Any shortfall that we do incur will just go under the umbrella of our unsecured debt and we will be offering token payments to them also. As regards to the AVS vs VR, I believe that the house is being marketed at a realistic price given the falling market, and any sensible offer will be considered. Why do you think buyers would find out that we needed to sell quickly?
I suppose at the back of my mind, I just don't want a repo on our file as well as BR, probably silly I know.
My husband has the potential for a pay increase in the near future, and I want to be settled in a home, after having baby before we then make any steps towards BR. We have struggled to raise money for renting, so it will take us a while to find £1500 for the BR fees. We also have a car on HP that we will need to hand back once the agreement ends in Nov as won't have the £5000 we need to pay the balloon payment for that. I guess until we know exactly how much money we have in terms of salary, tax credits/child benefit (after 2nd child born) and freed up money from the car, then I will wait before going BR. It is something we have pencilled in for the beginning of next year.

Angiepange

Thanks for the update sillygirl, hope everything is going well with the pregnancy too.

One question I have about the AVS that you are doing.....

Is there anywhere in the small print of this scheme that protects the lender in anyway regarding shortfall owed, if someone was to go through an AVS and then declare bankruptcy? Only reason I am asking is, when we went through MRS, we were pressured to sign a shortfall sale form that clearly stated

"we remain responsible for any shortfall incurred on the sale"

We didn't sign, but bear in mind we were already BR, so in our eyes by signing we would be accepting liability and not be protected by our BR. I wonder if this is totally irrelevant for someone who goes BR after the AVS sale? Even if they had to sign for shortfall liability, I am presuming a future BR would wipe this debt out also?

I know you also want to find out whether having an AVS on your credit file as opposed to a Vol Repo, is a more favourable option long term with regards to a future house buy, once the BR falls off your records? Anyone know?

Thanks.

sillygirl73

Thanks Angie.......we have not come across anything about accepting liability for shortfall yet, but have been told by CAB that even if we need to sign something, once we declare BR that would be wiped. Will investigate a little more just to put that niggle to rest!

kepar

My husband has the potential for a pay increase in the near future, and I want to be settled in a home, after having baby before we then make any steps towards BR. We have struggled to raise money for renting, so it will take us a while to find £1500 for the BR fees. We also have a car on HP that we will need to hand back once the agreement ends in Nov as won't have the £5000 we need to pay the balloon payment for that. I guess until we know exactly how much money we have in terms of salary, tax credits/child benefit (after 2nd child born) and freed up money from the car, then I will wait before going BR. It is something we have pencilled in for the beginning of next year.
Not as silly as I was thanks to MSE


By the sound of it, you will have a lot of spare money. You will have just got your life back and then all the spare money will go in an IPA for three years.

Angiepange

sillygirl73 wrote: »

Thanks Angie.......we have not come across anything about accepting liability for shortfall yet, but have been told by CAB that even if we need to sign something, once we declare BR that would be wiped. Will investigate a little more just to put that niggle to rest!

Thanks SG

I thought any liability would be wiped with a future BR but, you know me!, I have become so ultra cautious about small print since being pressured to sign against our interests where the Mortgage Rescue was concerned :eek:, that I just had to ask

I really hope this option works out for you.

I do see where kepar is coming from too, in that you could go for vol repo and BR as soon as you have the funds, and draw a line under it all. But I can see you want to determine your exact situation financially, with so many upcoming changes, before/if you go down the BR route. Who knows what may happen before then!

xx

shepherd06

hi all, well i hope this works for you sillygirl, we thought about AVS but.... there are a lot of houses for sale in my town (which is small) in particular my road and adjacant one, so, even though this would be better than repo i really don't think it would sell in 6 months, also if we are to go BR any shortfall would be included. Once we have gone BR i don't think having a repo on file would make much difference, we are not EVER going to buy anything again of substantial value and get into such debt again, the biggest thing we would be spending on is a holiday.....one day.....Anyway OH spoke to Shelter who are sending out breakdown sheets for us to fill in and send back, also OH is due to speak to CCCS today but shelter have said we will have to choose one or other to help us, and as Shelter help with housing situ will prob choose them. Out of all of this i am most worried about where we are going to live! We have not paid this months mortgage payment as car failed MOT and had to get that sorted, plus we are thinking well, if we are going to go BR we need to save for that, so we are expecting letter for court soon from mortgage lender(already have suspended order) so maybe they would evict us very quickly? Does anyone know if council would see all this as making ourselves homeless? Hope not as we are on housing register and am hoping they will put more points on if they know we will get repo', so allowing me to bid on place rather than get put into hostel or something (not going to be good for my kids,also have beloved doggy) soooo many unanswered questions i have ( sorry for going on.....

Angiepange

Hi jay

Glad you are receiving advice and help from Shelter.

I don't know about the councils homelessness procedures, but someone on here will ! If you are getting no replies on this thread, you might be best to start a new thread with your questions too, hopefully you may get some more answers that way?

Lots of people have been through repo on this board and hopefully will give you an idea of possible timelines.

I remember worrying myself sick over what would happen to our beloved dog too if we were evicted and I am pretty sure someone told me there might be help with boarding fees if you are in temp accommodation, but my memory is vague on this so you would need to check it out!

Hoping you get some answers and good luck.

dancingfairy

Hi Shepherd - I haven't followed all your story but I remember so much from watching Angie go through the process that there were so many twists and turns it was ridiculous. She had to fight, fight, fight - anyone and everyone - even when she was at the end of her tether. Sadly I fear that this is the sort of tenancity that you will need.
I would chase up Moat and find out what they have dragged you so far through only to pull out, put your questions to them regarding financial viability and that the governement are stumping up the cash so what's their problem.
Get on to your MP and council and find out why people in your area are not being assisted anymore- complain to everyone in sight. It's not your fault if the criteria suddenly changed- surely that's their fault for not getting the paperwork done sooner.
I wish you luck
df

Maizy

Really pleased its all worked out for you Angie, a really interesting thread with lots of info.

Shepherd

You are in the exact same position as we are, suspended repo order, kids, pooch, not knowing where we are going to live etc, missed mortgage payment etc, maybe as suggested if you start a new thread, it may gain you more expert advice. I have already waffled on a thread but shall take some of the advice on here and look at shelter too.