Looking for some advice....

Mummyto4terrors

I hope I am posting in the right place

I'll try to explain things best as I can; Just after xmas we had to go to court as the Mortgage company wanted to re-possess our home. The judge allowed us to stay and we have to pay extra on our Mortgage to pay off the arrears. I didn't go in with dh as it was when we had the huge snowfall and the children ended up off school so I waited with them in the waiting room as they weren't allowed in with us (Understandably)

When the judge said we were allowed to stay they said if we had any problems to contact the mortgage company. And if we missed one payment with no contact then we'd be out!

I am so fed up in this house as it needs so much repair done to it and we can't afford to do any of it. I just feel like escaping and getting a private rented house

I just don't know where that would leave us though? The house is in negative equity so what happens? I know it might be a stupid idea but I just can't cope in this house anymore.
We did phone the Mortgage company last mth as we were having problems to be met with: Tough you need to still pay us! Why tell us to contact them if we have problems if they aren't interested :mad: Luckily we managed to borrow some money but I can't do that again.

SouthCoast

Advice from National Debtline:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

Mummyto4terrors

Thanks for that. Looks like we are stuck here till the market improves

SouthCoast

And contact details for Shelter:

http://england.shelter.org.uk/get_advice/repossession/homeowner_helpline

Cannon_Fodder

Get to the debt-free wannbee forum, post your Statement of Affairs and they see if they can help with your budget.

Annisele

You might also get some helpful answers if you post on the Debt Free Wannabe board.

If you read the stickies on that board, you'll see some links to debt advice charities, and advice about putting together a SoA (statement of affairs).

It sounds as though you are really struggling to afford to live in your current house; if you post an SoA people might be able to suggest places you can make savings, or suggest benefits you haven't applied for but might be eligible for.

I'm afraid your 'escaping' plan is very unlikely to work. As SouthCoast says, you can still be pursued for the mortgage debt even after you leave - so in effect you'd be liable for both the mortgage and rent on the new place at once.

The vast majority of (decent) private landlords also require a credit check before they will let to you, and your mortgage arrears will likely show up on those checks. Private landlords will let to people in financial difficulty - even to bankrupts - but most LLs would not wish to take on a tenant who had to pay a mortgage (which they had already defaulted on) as well as rent.

Depending on your circumstances and the amount of the negative equity, you might be able to sell the house and get a loan for the shortfall. As an absolute last resort (and having taken proper advice) bankruptcy might also be an option for you. You aren't necessarily stuck in the house, but I think you should try talking to a debt advice charity before you go much further.