Paying off mortgage for a repossessed house

debtfreemummy_2

Hi all

Just found this site after being referred by a friend, and wonder if someone out there can help me? Basically it's a query about getting an old mortgage paid off after the house was repossessed quite a few years ago.

Here's the story:

My parents had some money problems about 18 years ago. Their financial advisor got them to ask me to take over the mortgage in my name (& they would continue paying it), & stupidly i said yes. Then my dad was made redundant & the dole office weren't paying the mortgage, etc, etc & the house was eventually repossessed!

The company who took over the mortgage debt after the house was re-sold (for a pitiful amount!) found me about 8 or 9 years ago which means that although it's being paid off slowly now, it's still in my name & not my parents! (I was advised at the beginning by CAB that they wouldn't transfer it back to my parents at this stage!)

Ever since the beginning they gave me the option to pay off either a monthly amount or a lump sum of £5,000. I couldn't afford the lump sum so have been paying it monthly (from £20 - £75 depending on my circumstances).

Now, though I've just had a baby and on my wages I can only afford £5 a month, but I did offer the debt company a lump sum of £1,000 which is all I can do - as a full and final settlement (this would take into account the money already paid and the £5,000 lump sum they wanted from the beginning). But they turned down both offers.

Any ideas on what I can do now?

I really want to get this settled, cannot afford more than £5 a month from my wages, and my partner & I want to buy our first home together but can't (I don't think) all the while this is hanging over our heads. It causes arguements too with us as he thinks my parents should have done more to take it off my hands at the time.

Can anyone point me in the right direction? Should I get my parents to take out a loan to offer them more of a lump sum? If so, what amount would be better do you think? Or is there any other way to get this out of my hair once and for all?

Sorry, it's so long & hope it's not too confusing! Thanks in advance for any replies.

gallygirl

Legally this is your debt, but morally it's your parents debt and to be honest I don't think very highly of them if they have let you continue to pay this over the years. I would take it up with them as a matter of urgency and ask them WHAT, not IF they're going to do about it.

With regards to you buying a house, don't know what the position would be, but tbh you don't sound as if you can afford it at the mo. You should send off for a copy of your credit file though to see if the debt is on there. I would have thought that any mortgage company would take the circs into account.

Good luck!

Kevicho

Can you find a solicitor who may be able to get you out of this debt.

In honesty it isnt fair you paying this and something along the lines of being forced into it under circumstances that you were notaware of what would happen, see if you can wriggle out of it that way

CLAPTON

i think your parents should have sorted this out for you years ago. if they can afford to help now they should so you can move on with your life.

if however they will not help and you really can't afford more than £5 per month then you should prepare an SoA showing how little money you have and make the DCA the offer of £5.
they will of course refuse to accept it. but if you really can't afford more then just pay them the £5.
this will affect your credit record which will make getting a mortgage in the future more difficult but from what you say you can't afford one anyway; but there seeems little else you can do.

they may threaten to take you to court but if you really can't pay more then they are unlikely to gain anything by doing this

but you really should talk to your parents about this, its their responsibility .

fatbelly

I agree with Clapton. But if you & your parents can hold on to the £1000 lump sum, try offering it again as f&f in 6 months. Mortgage shortfall debts are often settled for quite small amounts. As Clapton says, they may threaten to take you to court but if you really can't pay more than £5 per month then they are unlikely to gain anything by doing this. It would just be an empty threat.