Should I go bankrupt?

dopester

sharkie wrote: »

Expect to loose 20-30??% of the market value if it goes to a foreclosure bid or auction

If it's loose then tighten it. Also the market value at the auction is the market value when the hammer falls. It might be a lower market value than when he bought, and see him "lose" 20-30% on the price he bought at, but it is the current market value.

Ride the equity wave? TV Culture? Gordon Brown No More Boom & Bust? It's all for idiots. In the future let's hope more people study maths and read proper books about economics as a past-time, instead of monging out at night and believing what idiots on the telly tell them.

Some landlords might prefer to not rent to a bankrupt, if they do a credit-check and have more suitable tenants lined up.

PasturesNew

So, you lied to get a mortgage in the first place, hoping it'd make you a millionaire.
It's not... and now it's worth less than you paid for it.
While out walking the dog (so presumably close by), you've spotted a bigger/grander house .... and now want to at least LOOK like a millionaire.

You will fail.

I'll say that again in case you missed it: YOU WILL FAIL.

Why can you simply not do the easiest thing and just stay in your house, work on a plan to reduce your outgoings/take on some extra work, then save EVERY penny for 2-3 years, then get shot of the place you dislike and get a fresh start with a clear conscience and knowing you are a hard worker after all.

Your children won't think it very special when they're sitting, watching the bailiffs take all your possessions from your fabulous house ... a house that you'd be forking out a FORTUNE to repair, for SOMEBODY ELSE.... only to LOSE THE LOT again in 5 years when the owner pops round and thinks: "mmmm, tasty, they did a good job, I'll turf them out and flog this".

Become happy with what you have - don't believe the shiny people on the telly.... their life isn't real life.

SouthCoast

Mortgage Shortfalls.

Many people find themselves being asked to pay large sums by their mortgage lender after they have been repossessed or have handed in the keys on their house. Often people think that once they have left the house their liability ends. However, this is not the case if the house is sold for less than the outstanding mortgage. The debt that remains is usually referred to as a mortgage shortfall. This also includes the monthly instalments and interest that has been added on to the debt until the house is sold, plus legal and estate agents' costs.

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

unknownforce

PasturesNew wrote: »

So, you lied to get a mortgage in the first place, hoping it'd make you a millionaire.
It's not... and now it's worth less than you paid for it.
While out walking the dog (so presumably close by), you've spotted a bigger/grander house .... and now want to at least LOOK like a millionaire.

You will fail.

I'll say that again in case you missed it: YOU WILL FAIL.

Why can you simply not do the easiest thing and just stay in your house, work on a plan to reduce your outgoings/take on some extra work, then save EVERY penny for 2-3 years, then get shot of the place you dislike and get a fresh start with a clear conscience and knowing you are a hard worker after all.

Your children won't think it very special when they're sitting, watching the bailiffs take all your possessions from your fabulous house ... a house that you'd be forking out a FORTUNE to repair, for SOMEBODY ELSE.... only to LOSE THE LOT again in 5 years when the owner pops round and thinks: "mmmm, tasty, they did a good job, I'll turf them out and flog this".

Become happy with what you have - don't believe the shiny people on the telly.... their life isn't real life.

WOW - don't hold back, I'm only a faceless bulletin board message after all.

I work a very hard 6 day week thank you very much and between my wife and I (who also works full time), we earn above the national average. If we stayed in our house and our incomes remained unchanged then we could save the required deposit for a countryside property in our area in (realistically) 4 years - by which time our kids will have missed the best parts of their childhoods.

I don't want to look like a millionaire, but I do want my children to live in the countryside and not on the main road we live on, where they cant go out on their bikes.

Yes, I lied to get my mortgage, many did I'm sure. At the time it was the only way I could afford a 3 bed semi and my wife was pregnant. It seemed the best thing to do, we thought we MUST have a mortgage. I was naive I admit.

YOU WILL FAIL ....? Fail in what, living? This has no foundation. Renting a property for a reduced price offsetting the cost of improving it over a period of time is not unheard of. It also means we get to live where we would like. People make all sorts of choices in life and this is what we would like to do, so I don't know why you think you are in a position to tell us this wrong.

For those that replied with helpful replies, thank you - I do appreciate it. I also appreciate the thread by Marcus with his house selling tips.

It's my fault, I was the one that put myself out there to be abused, but I suspect there are many people like me that have made bad choices in life and are now looking to sort themselves out. For those who sit day after day reading bulletin boards armed with smart comments, try and remember that we all have weaknesses, behave recklessly at times, do the wrong things and are all at different life stages. Therefore, if you are going to reply to a message, try and do so with humility.

Best

unknownforce

dopester wrote: »

If it's loose then tighten it. Also the market value at the auction is the market value when the hammer falls. It might be a lower market value than when he bought, and see him "lose" 20-30% on the price he bought at, but it is the current market value.

Ride the equity wave? TV Culture? Gordon Brown No More Boom & Bust? It's all for idiots. In the future let's hope more people study maths and read proper books about economics as a past-time, instead of monging out at night and believing what idiots on the telly tell them.

Some landlords might prefer to not rent to a bankrupt, if they do a credit-check and have more suitable tenants lined up.

You're right of course, the going bankrupt idea was flippant. I am going to sell and pay the shortfall of a couple of thousand. Thanks for jolting me back to reality - although as per my above post, please do remember that behind each post is a person

Eric1

unknownforce wrote: »

I work a very hard 6 day week thank you very much and between my wife and I (who also works full time), we earn above the national average. If we stayed in our house and our incomes remained unchanged then we could save the required deposit for a countryside property in our area in (realistically) 4 years - by which time our kids will have missed the best parts of their childhoods.

I don't want to look like a millionaire, but I do want my children to live in the countryside and not on the main road we live on, where they cant go out on their bikes.

Sorry, not convincing.
It seems "the missed childhood" is just an excuse to do what you want right now. Going out on bikes is of course nice, but your children may miss more important things later if you don't think and plan long-term.
Good luck.

unknownforce

Eric1 wrote: »

Sorry, not convincing.
It seems "the missed childhood" is just an excuse to do what you want right now. Going out on bikes is of course nice, but your children may miss more important things later if you don't think and plan long-term.
Good luck.

I don't understand your point?

What is wrong with selling a house, paying off the mortgage and then renting a property?

My mum rents, she has never had a mortgage. As her child have I missed out? (apart from when she dies of course, but then everyone should stand on their own two feet as an adult shouldn't they)

sharkie

dopester wrote: »

If it's loose then tighten it. Also the market value at the auction is the market value when the hammer falls. It might be a lower market value than when he bought, and see him "lose" 20-30% on the price he bought at, but it is the current market value.

I probably will not be auctioned, but sold of cheaply via bids through an estate agent. Probably will go to a preferred company.

A friend of a friend split with her other half, so I got tipped off. I wanted to buy it, but the agent would not even except my bid, nor would they disclose who the bank was. Found it went to a developer later on through her. It as sold for about 25% below market value.

MegaMiniMouse

Hey UKF, welcome to MSE (the site is FULL of ACRONYMS, btw)

I bet like me when you saw Martin on the telly you thought 'here's a spunky kind of guy, bit of a !!!!, but willing to wade through the small print whenever possible, maybe come up with the occasional original idea'

But trust me, the website is a BIG disappointment!

Sheep everywhere! Eating Grass...

MMM

dopester

Still trying to organise the debtors revolt MMM? There is not a lot of sympathy here for people who've spent their homes away as they fast approach retirement. Limited sympathy anyway.

The OP here is not the only victim of his actions if the Self Cert mortgage he took to buy was highly unrealistic in terms of affordability for him. Liar loans helped fuel house price inflation year after year and price out many people who otherwise would have been able to buy at more realistic prices. The past 8 years have been so punishing for many honest people with regard the housing market.

I don't know what the best course of action is for the OP. The mess is now created and he needs to extricate himself from it as best as possible. Didn't mean to give you a lecture, so good luck in finding a way.