Selling/renting/repossesion ?

Jonno_Brakesman

Hi, wasn't sure if this would be the best section for this tbh.

Currently in a tricky situation that I'll try to explain briefly.
Partner disappeared leaving a lot of mortgage arrears that I knew nothing about.
Sorted this out and was OK up until being made redundant recently.
Mortgage co went straight for the throat and have an eviction order.
The house is a Council right to buy property still under the three year selling clause.

I was considering the Sell to rent option and have been offered 25% less than the market value of the house.
Does this seem a little low?
Once the mortgage co and council have been paid back that would leave almost nothing (if anything at all)& the Ex would probably re-appear to claim some.
But this seems a simple solution to get out of the mess and keep the roof over my head.
I feel as though they have me over a barrel really.

Would the mortgage company reduce the total pay-off amount and/or waive the early settlement penalty?

Would housing benefit cover the rent of the property for long enough to get back into work? (is imminent anyway but would like a month's safety net).

Sorry for the long post and thanks for reading,
J.

saver_sam

Who has offered you 25% below the market value? I believe if its the type of company i am thinking of, they were mentioned on watchdog for doing drive by valuations for nearly £500 which was very poor value for money!

Have you considered applying to the court for enough time to sell/transfer the property as if you can prove you have this offer and it will complete in a reasonable amount of time then the judge may suspend the order. Also if you are getting a job soon and have a firm offer, could you not use this too to apply to the court for a suspension, offering to spread the arrears over a period that you know you can afford ontop of your installment?

You might have to check with HB as sometimes it has been suggested that as you have lost the house then you are making yourself intentionally homeless and therefore are not entitled to help. But if you have children they are required to accomate them.

Also consider if you need to sell the house then your OH will need to be found to complete the relevant forms too!

silvercar

singingpig.com seems to be full of investors doing BMVs (below market values). I'm sure some of the people on there could advise you on what to expect and what to watch out for.

Good luck with whatever you decide to do.

Jonno_Brakesman

Thanks Silvercar.
I'll check out that site.


saver_sam.
It was from A Quick Sale.
I have another company getting back to me as well so I'll not agree anythign until they've offered something as well.
Not that i'm going to rush into it if I can help it.

I will be applying to the court for more time but it's only a few days away now.
I need to get it suspended as if I can get another 4 weeks I have far less to pay back to the council.
Which could make or break me tbh.

I really don't want to stay with my present mortgage company anyway as they are the most ignorant, unhelpful bunch of 'people' I've ever had the mis-fortune of dealing with.
At the moment I'll be stretched with expenses anyway as it's a new business that may not give much income for a while. So the risk is there, lessening that risk by renting back the house may be the easiest solution.

The HB was a worry.
No children at home.
I do find this system very odd though.
If I had the mortgage over ten years they'd help.
If I am unemployed for more than 39 weeks they'll help.
If I was already renting, they'd help.
If I leave my present home and rent another place they said they'd help.
But if I try to stay in my home of the last 14 years they don't want to know.

And I hate the way they class it as being 'intentionally homeless' as though we think it's a good idea/plan.
I will need to check that out though.
Do you think asking the buyer for a few months rent free would work?
With the low offer they've given I think it might be worth a go at least.

I do now have a way of contacting the OH and they seem agreeable on the house sale.
Not sure what paperwork I need them to sign though.


Thanks for the help so far.

clutton_2

"""I will be applying to the court for more time but it's only a few days away now.""" -

a court will generally only give you more time if you can present them with documentary evidence of how you plan to repay the debt you owe your lender. One way is to produce a solitors letter saying that you have a purchaser - this tactic can buy you another month. I helped a man to get a 6 week extension from the court, as he got a signed tenancy agreement from a letting agent which showed that he would have somewhere to go in 6 weeks time (he had 2 children) - the judge granted him the extra time.

Judges have very little legal discretion in delaying repossessions, the law actually allows lenders to apply for repossesion after arrears of 2 months mortgage payments !!!

good luck

lynzpower

speak to shelter about IH decsions and how this may effect you

Jonno_Brakesman

Cheers.

I'm off to see the baillif shortly with the suspension application.
I have a letter from one company with an offer to buy.
And am waiting on another.
Hopefully this will be enough to get me a 5 or 6 weeks as the date for purchase was pencilled in for 20th July.

Still concerned about the HB though.
Do you think getting some rent free months would be a better option?
I think that may help as I won't ned to claim HB and it will give me time to get the new business running properly.

Jonno_Brakesman

Are all of these companies the same?
You know the ones, those offering to buy your house.
They come and have a look, agree a price, then not long after ring back offering a ridiculously lower offer.
Knowing that you are in no position to wait too long.

I suppose I'm asking too much that they actually try being honest and up-front about anything. but why make an offer they know they'll be lowering once they leave your sight.

They are offering 30%+ BMV.

/dismayed.

Doozergirl

Companies aren't the only people that would be able to buy your house quickly. If you were prepared to actually move out, you'd be able to get a much better price and hopefully end up with enough money in your pocket to cover a few months rent.

If you were to contact an Estate Agent and ask them to market the house at "offers over £(insert the best price you get from a quick sale company!)", you can absolutely guarantee that your house will be crawling with prospective buyers within the week and you should have a bidding war on your hands. Every person out there currently looking for a property is out for a bargain and for many people that may only be 5-10% off market value and there WILL be someone who is able to complete quickly.

Negotiate hard with the agent too as it should be money for old rope for them to get you sold quickly if you're compromising on your price.

clutton_2

i know of several companies who can buy property very fast, and it is a cut throat market, thats for sure. Some of them are totally ruthless, and dont care about the vendor, or his family, but there are others who try to do their best. I do know that if you buy a house Very fast, it can cost you much more than thru the normal channels - solicitors and mortgage brokers often charge you a large premium for fast work, and insurance policies are sometimes bought instead of waiting for searches etc. To buy and sell a house within a short time can cost 10% of the purchase price in fees, disbursments/estate agents/solicitors costs/mortgage brokers fees/stamp duty etc etc etc If a good company works on a 5% profit, they can only offer 85% of the asking price - then there is redecoration to be done before putting it back on the market.

Some companies can prevent repossession - and that, can be priceless in terms of saving families from CCJ's, bankruptcy etc, which can ruin lives for many many years.

Buying and selling houses fast is a trade, like any other buying/selling business, but it does impact heavily on peoples lives and is a very emotional subject.

Like all business, there are good and bad. In my limited experience A quick Sale Ltd has a good business ethic, and will often pay all fees for the vendor, whilst National Homebuyers do seem to charge a great deal for valuation survey fees, without necessarily always buying the property.

Jonno_Brakesman

Thanks both.

One problem is that I really want to rent back at least for the time being.
I need that time to see how the new business goes and to plan where would be best if I move.
Also the pets do take a high priority and having a place for them is important.
Which is a reason for getting soem time to organise things properly.
That and the fact I have nowhere to go in such a rush.


AQS are one company that have offered a very low price and a reasonably high rent.
another has offered slightly more and a lower rent.
But neither pay off the whole mortgage which is what I really need.

It would only take another £3k on the offers. Do you think this is a likely prospect?
Seems they are being ruthless because of the situation.

If I have to move out then I may as well let them reposses and see what price that gets. Or is that a silly idea?

Either way the court hearing is tomorrow and so is the eviction date.
If you never hear from me again you'll know why.
So thanks for the help :-)