Plz help! Not entitled to benefits & kids 2 support?!

marjoriedoor

Hi - am really hoping that someone might be able to think of something to help my situation:
I have always worked since graduating in 1997 and was v successful, earning lots, bringing up 2 lovely kids etc..
In 2006/7 I moved house and the sale of my old house fell through at the last minute - I started renting it out to cover the mortgage and, unwittingly, became a landlord..
End of 2007, I put 50% deposit down on a static caravan, taking a loan for the other 50% (230pm for 7 years);
In 2008 my sister died - I went off work with bereavement, and helped family/ het 2 yound kids etc.. went back to work to be told that my old job had been shared amongst the team and was no longer available - I was put on secondment and put at risk of redundancy (nice!)
Beginning 2009, I was made redundant...
Since april 2009, I have lived on savings, cashed in any endowment policies etc and taken out bank loans to survive (believing I would soon find work).. I am not entitled to benefits as I own more than one home.
(BTW - I have an Employment Tribunal case outstanding)
I put my rental home up for sale - it is the cheapest 3bed in the area - and is NOT selling;
I had my caravan valued and discovered it was worth several thousand less than the loan outstanding on it (I sublet the van to help cover the costs of the site fees etc and can only afford to stay in it with the kids couple of times a year) - it is not worth selling, as I will be left with a debt and no van/ holiday?!
I have now run out of money, cant pay my bills, cant pay mortgage, bank loans etc and have no other assets (except for house whoch isnt selling) to sell -
I am not entitled to any help from the government - I am supposed to pay my own council tax, etc etc - as my 2nd property is classed as 'savings >16k'
I have now oput my home up for sale, which my kids and me are devastated about - except in the current market I doubt it will sell very easily...
Cant believe its come to this - I simply cant find work (for the 1st time in my life) and cant seem to get help from anywhere?? I even phoned the Welfare advice line - and was told I was not entitled to even that service (coz of my 2nd home)??
Now - if I had not been so hardworking previously, and tried to provide a future for me and my children, of the sale of my house had not fallen through in 2007/8 and so that would have sold... I would have been entitled to have my home mortgage paid, would have rceeived income support, council tax benefit etc etc - as it is, and despite being a victim of the Credit crunch and immoral employers, I am turned away at every corner!?
My Lender has given me 3 months to sort things out (joke) before they start repossession process (I evetually phoned them last week after realising that I would struggle to find next months payments - I have not actually gone into arrears yet amazungly) - they will not allow me a payment holiday or similar..
I quite literally have no cash left - I need to cancel all my direct debits for bills, mortgage, loans etc etc - but how are me and my 2 children going to live?? I really dont get it - why have we been left so totally alone with no where to turn for help?

Anyone?? x

cakey

hay didn't want to read and run hopefully someone can give you some sound advice, in the meantime, huge hug xxxxxxxxxxxxxxxxxxxx

Oldernotwiser

How much equity do you have in your properties?

karenx

Are you not getting child benefit and child tax credits? These are a benefit?
Its right what you have been told, not entitled to housing benefit as you arent renting and also you own a house.
Have you got a partner? Do they work?

marjoriedoor

Hi - no partner; I get child benefit 100 or so pm and child tax credits 99pw - my main point is that although I have so-say 'equity' in my properties, they are NOT selling at the moment - I would gladly sell if someone would buy, as I need to have cash to live. My tax credits, CHB and JSA dont even cover my utilities bills?! As for the mortgage interest payments - goivernment introduced a scheme that if you were made redundant during credit crunch they would pay mortgage for you to avoid people losing their homes - but I dont qualify coz my rental property is classed as savings, even though I cannot release the 'equity' as such, the house is not selling and any equity I do get iof hpuse sells I need to pay-off the bank loans ect I have needed to live on coz I wasnt entitled to benefits... vicsous circle

merlin68

You say you are getting jsa, child benefit and tax credit though, so you are getting benefits.

karenx

If you do sell the house and pay off the loans you will still not be entitled to help as it will be seen as deprevation of capital. In other words, you have money but instead of using it for everyday living you are using it to pay of debts. Whereas you can use the money to pay the bills and your monthly payment on loans/credit cards etc. You cannot do this and then expect the government to give you help.
Can you lower the sale price of the house?

lynzpower

Maybe your best bet is to try to reduce your bills down as much as possible?
Have you done a SOA and seen if you can get your utilities down, this really sounds like a lot you are paying if it takes every penny of your benefits

dmg24

If you really cannot sell the caravan, have you looked at one of the 'quick sale' companies? I would not usually recommend them, but if it means a chance to get back on your feet, it may be worth a call (I am not sure if they would look at caravans, but you can ask). A friend has done this, and whilst they only got 85% of what they believed the house to be worth, it has meant that they can start afresh and keep their credit rating intact.

marjoriedoor

Thanks DMG - I did converse with one re my rental property but unfortunately I have reduced the market price so much now that they couldnt offer me even as much as the mortgage on it. I havent approached re my home yet though - TBH my heart's breaking coming to terms with the fact that I am likely to lose it - been working on it years and is a real family home for me and my kids. I really did believe that I would find a job, as I have never had any problems in the past - but think by taking my ex-employers to employment tribunal (backed by union solicitors) has really damaged my reputation locally
Sad thing is - my situation is so down to wrong timing/ credit crunch/ housing market.. plus I fixed my home mortgage just before credit crsis and so am paying an excrutiating amount (4 times what I would be if in a position to get the same value mortgage now)..
Think I'm clutching at straws...

As for comment re me receiving benefits - I was referring to the inability to claim income-related benefits (which then enable you to get lots of other help re costs etc) - which I cannot get despite having no income?

Many thanks to to you all for reading/ advice x

PS - contacted my local MP who is going to look into things on my behalf, not sure what he can do though but there's always hope (however pathetic)!

Indie_Kid

Child tax credits are based on income.