Need Advice - How do I get out of this house!

SkintStokie

Hi - My partner and myself have managed to get ourselves in a sticky situation and need a little advice.

We rather stupidly took out a mortgage from Kensingon two and a half years ago - we now understand that if the devil himself did mortgages they would be with Kensington. This mortgage was originally for £38000 and is costing us £350 per month

We even more stupidly took out a secured loan from Welcome finance to 'consolidate our existing credit' which was for £20000 and is costing us £390 per month.

We could just about manage but unfortunatly the company I was working for went bankrupt and because of this i missed two months payments on just about all my creditors.

Now Payplan are sorting out the unsecured credit for us, however we cannot afford to pay back the arrears on the secured loan and mortgage and the interest etc is starting to get riduculous.

We dont really like the house so we have looked at selling it and moving back into rented accomodation for a few years until we get straignt. The house is valued at £80000. We are looking at selling it with quicksale. They are looking at £62000 as an offer. My questions are:

What if we want to sell the house but the amount we get offered does not cover the mortgage and secured loan (once they have finished adding charges etc) - does this stop us selling the house?

What if we just hand the mortgage company the keys - how does this work regards the secured loan. We dont want any money from the house we just want out.

On top of this the mortgage has us locked in until november we have wrote and asked them to waive this as we are selling but I doubt that they will help us.

We cant really go through an estate agent as we dont have time - kensington are already talking about reposession.

Any help from anyone who has been in this situation would be very helpful.

tomstickland

My main thought is that you could sell a house quickly if you priced it right with a normal estate agent. Valued at £80K, why not try selling at £70K for quick sale?

CLAPTON

as tomstickland said, go see several estate agents tomorrow. try to get their valuation in writing

dont even think about walking away.

kensington will be at a disadvantage if you are already in the process of selling.

tomstickland

I think that these people will try to harrass you, but they know that any legal proceedings are a long and costly process, so any method whereby you pay them back within a matter of months is preferential. So don't be bullied by them; sell the house via an EA and get a decent sum for it, rather than some accelerated sale where you don't get the market value.

Wickedkitten

A mortgage of 38000 and its 350 a month??? Can you not remortgage with someone else? Even if you had to pay an early repayment fee your mortgage would be LOADS less.

Wonder_Girl

May i ask a few questions please?

How much go you owe on the mortgage and secured loan altogether?

How much do your unsecured debts add up to?

How much are you currently paying into your DMP?

Do you really just want out of the house and not bothered if you get any money out of it?

WG xxx

Bossyboots

I would be very surprised if either of the creditors agree to you selling the house at below market value if they are not going to receive their money back out of it. They might consider it more financially viable to repossess the property and market it themselves, passing any consequent costs on to you as well.

They might negotiate with you on figures if you sell at the market price, but not several thousand pounds lower.

Also, November is not that far away. Think very carefully about timing the marketing of the property to see whether you can stretch to then to avoid any fees.

Dr.Shoe_2

Should be able to. Even with an "instant" sale it can take 6 weeks for a sale to complete...

CLAPTON

having re read the thread i think you ought to post a full SoA giving the full financial situation.

are you for example paying anything on your unsecured debts? is it possible to get the mortgage and secured loan payments up to date even if it means paying nothing on un secured debts.

do not 'hand in the keys' ... you will still owe the balance of the mortgage and secured debt and the house will almostly certainly be sold for less that you could get on the open market.

Skint_Entrepreneur

Companies like Quicksale look usually for around 20% below market value (BMV) when purchasing property. The upshot is a lot of them will take you on as a tennant, the downside is you let your house go for a song. The other upside is your neighbours needn't ever know....if that bothered you.

SkintStokie

Thanks for all your help. I'll post a little more information. I'm waiting for full estimates but I think that we owe around £38000 (still) on the mortgage and £23000 approx on the secured loan (we let ourselves get suckered for loads of insurances etc)

If we didnt pay payplan we could afford to pay £150 to each, trouble is they are putting on 50 quid a month to our account so we are only paying 100 to each effectively. Therefore it would take 10 months to clear the arrears and they will have reposessed us by then. + all the unsecured creditors will be after my blood.

Hopefully Quicksale will offer enough to pay all the debt off and then we can get out of the house. We have found somewhere that we really like nearer to where i work (i am paying £50 a week in petrol costs) so hopefully things will fall into place.