Can anyone help me please....??

chocolates

Hi everyone
My parents have recently split up and my mum has left the marital home. My Dad is still in the property but is struggling to meet the mortgage payments of £740 per month. He is now in arrears of £500 and the bank wont look at my Dad taking on the mortgage until this is cleared. However how does it work, does my Dad have to lend more money to pay my Mum off?? there is aroud £40,000 equity in the house and They owe £98,000 I just dont want to see the house reposessed and my dad homeless
Thanks in advance

dimbo61

You ned to sit down with dad and look at all his bills and how much he earns.
He needs to cancel the sky and look at every bill he pays and see where he can cut back or get a cheaper deal.
When was the last time he changed gas,elec,phone,insurance etc
Has he got any junk he could sell on E-bay
He may need to put the house on the market and sell to give Mum her share but right now he needs to clear the arrers

Annisele

First of all don't panic. If there is £40k equity in the house, your Dad has explained the situation to the lender, and he is trying to pay what he can, then the lender will be relatively slow to repossess. (On the other hand if he just stops paying the mortgage the lender will be quite a lot faster).

If your parents are getting divorced, then the court will take into account all your parents' assets (including pensions) and all of their debts. The starting point is that each party will take 50% - but the actual figures can be a long way from 50%, particularly where there are dependent children involved.

So, if the house is their only asset and the mortgage is their only debt and there are no children under 18, then I'd expect your Dad to have to pay your Mum about £20k (half the equity).

What does your Mum want? If your Dad couldn't pay the £20k straight away, would she want to force a sale?

How much does your Dad earn? If he's struggling with a mortgage of £98k then presumably he'd also struggle with a mortgage of £118k, so there may in the end be no option but to sell the house. However, before you take drastic action see if you can persuade your Dad over to the Debt Free Wannabee board to post a SoA (there are stickies there as to how to do that). The DFW peeps are pretty good at finding ways for people to reduce their expenditure.

chocolates

Annisele wrote: »

First of all don't panic. If there is £40k equity in the house, your Dad has explained the situation to the lender, and he is trying to pay what he can, then the lender will be relatively slow to repossess. (On the other hand if he just stops paying the mortgage the lender will be quite a lot faster).

If your parents are getting divorced, then the court will take into account all your parents' assets (including pensions) and all of their debts. The starting point is that each party will take 50% - but the actual figures can be a long way from 50%, particularly where there are dependent children involved.

So, if the house is their only asset and the mortgage is their only debt and there are no children under 18, then I'd expect your Dad to have to pay your Mum about £20k (half the equity).

What does your Mum want? If your Dad couldn't pay the £20k straight away, would she want to force a sale?

How much does your Dad earn? If he's struggling with a mortgage of £98k then presumably he'd also struggle with a mortgage of £118k, so there may in the end be no option but to sell the house. However, before you take drastic action see if you can persuade your Dad over to the Debt Free Wannabee board to post a SoA (there are stickies there as to how to do that). The DFW peeps are pretty good at finding ways for people to reduce their expenditure.

Thankyou so much for your reply. My mum wants to sell the house becuase she wants money for a new start however she is also happy for my dad to takeover the mortgage but wants paying off.......
I have sat down with my Dad and he would struggle to pay the mortgage on his own and thats without increasing it. He just wants to stay in the family home and he will not be able to get another mortgage on his own. I think the best thing would be to sell but its getting dad to agree to this. And dad hasn't got a clue when it comes to using a computer so he wouldn't come on here but i could sit with him and help him. Do you think the bank would increase the term?? My dad is 50 but does have two war pensions............

chocolates

dimbo61 wrote: »

You ned to sit down with dad and look at all his bills and how much he earns.
He needs to cancel the sky and look at every bill he pays and see where he can cut back or get a cheaper deal.
When was the last time he changed gas,elec,phone,insurance etc
Has he got any junk he could sell on E-bay
He may need to put the house on the market and sell to give Mum her share but right now he needs to clear the arrers

Thankyou for your reply........my dad doesn't have sky or internet etc etc
Howeveri am helping him try and cut bills and he's now having a water meter fitted. And yes possible junk to sell on ebay

dimbo61

Good Luck to you and your dad and hope he can get sorted out