We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Losing my house
samqu
Posts: 12 Forumite
Morning,
New to the forum but heard its very helpful when seeking help from those in a similar sort of situation. Here's my summary below.
I do have some credit card debts but they are being paid off as a result of agreement with the relevant companies.
My financial issues relate to losing my job. I have good qualifications and held some good job positions over the years. I am in my mid fifties and finding it very hard to get new work but i continue to seek jobs every day of the week etc. Age aspects do seem to influence choices available in the eyes of potential employers. I do know that I will have NO money available to me whatsoever in 4-5 weeks. Absolutely NONE.
THE BIGGER CONCERN IS AS FOLLOWS..
I have a home which is valued considerably higher than moneys I owe which is a positive. We tried last year to sell our home for a fair price. There was little interest as there are a lot of houses for sale in our small town.
I know that if i approach my mortgage company they will ultimately seek to repossess if I end up missing 3-4 payments. I do know that there wont be enough endownment available to pay off the mortgage in 3 years when the mortgage comes to an end.
THE MAIN QUESTION IS AS FOLLOWS.
Do mortgage companies who subsequently trigger the sale of the house forward any profits (whats owed versus what they sell for) end up giving me the difference (profit from owed against sale price) or do they literally try to agressively sell the house at a price they know will get a quick sale plus cover the moneys owed to them or do they look to get a fair price that does subsequently help someone like myself.
In a way clearing the house and paying the cards perhaps gives me a new start. Hopefully a new job allows me then to be free from debt and look to long term rent as my credit rating wont be good as can be imagined.
Desperate for advice on these aspects
Thankyou
Sam
New to the forum but heard its very helpful when seeking help from those in a similar sort of situation. Here's my summary below.
I do have some credit card debts but they are being paid off as a result of agreement with the relevant companies.
My financial issues relate to losing my job. I have good qualifications and held some good job positions over the years. I am in my mid fifties and finding it very hard to get new work but i continue to seek jobs every day of the week etc. Age aspects do seem to influence choices available in the eyes of potential employers. I do know that I will have NO money available to me whatsoever in 4-5 weeks. Absolutely NONE.
THE BIGGER CONCERN IS AS FOLLOWS..
I have a home which is valued considerably higher than moneys I owe which is a positive. We tried last year to sell our home for a fair price. There was little interest as there are a lot of houses for sale in our small town.
I know that if i approach my mortgage company they will ultimately seek to repossess if I end up missing 3-4 payments. I do know that there wont be enough endownment available to pay off the mortgage in 3 years when the mortgage comes to an end.
THE MAIN QUESTION IS AS FOLLOWS.
Do mortgage companies who subsequently trigger the sale of the house forward any profits (whats owed versus what they sell for) end up giving me the difference (profit from owed against sale price) or do they literally try to agressively sell the house at a price they know will get a quick sale plus cover the moneys owed to them or do they look to get a fair price that does subsequently help someone like myself.
In a way clearing the house and paying the cards perhaps gives me a new start. Hopefully a new job allows me then to be free from debt and look to long term rent as my credit rating wont be good as can be imagined.
Desperate for advice on these aspects
Thankyou
Sam
0
Comments
-
Hi Sam, welcome to the boards. I'm not too sure on this but someone will be along who knows more about it. I have a feeling that the mortgage company will sell to recoup as much money for themselves as they can. Say your house is worth £150,000 and you have £100,000 mortgage, I think they will quite happily sell for the amount of the mortgage. The problem is as well, the market is a bit stagnant just now, so they might well be glad to get shot of it for well less than it's worth! The other thing as well is, if they have to sell for less than the mortgage left on it, you will be liable for the balance. As I said I'm not 100% sure, I might well be wrong on that.0
-
Thanks for this Marisco.
Yes I need some clarity regarding the Mortgage Company and how they would potentially approach the house sale. This is a key consideration I need to be aware of. Hope others can advise please.
S0 -
This link may explain it - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls
Basically the mortgage company can sell the house at whatever value they see fit and chase you for the remainder. Obviously the amount they see fit still has to be fair and obviously this is a subjective price.
Mortgage company wants the mortgage paid and they will get that whether it sells above or below the amount on the mortgage.
You get the best deal if you sell the house, not them.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
You are always better off doing a sale yourself. If the lender does it, they won't care about getting best value, although they are supposed to. Plus, with the lender not caring and the equity being so high, there is a lot of scope for the Estate Agents mate to make an offer which covers the lenders dues and hand the Estate Agent £5000 on completion. Estate Agent meanwhile fobs off any and all potential buyers.
If you go down this road, you should get a mate to mystery shop for your property and see whether the Agent is running and open market. More about this in some threads over the last few months on the Housebuying board.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
not sure what you mean ref this0
-
Sorry DVardysShadow,
I meant I was a little unsure what you were suggesting. My apologies. Hopefully I will get it soon ;-)
0 -
I do have some credit card debts but they are being paid off as a result of agreement with the relevant companies.
Do you mean you are on a debt management plan?My financial issues relate to losing my job. I have good qualifications and held some good job positions over the years. I am in my mid fifties and finding it very hard to get new work but i continue to seek jobs every day of the week etc. Age aspects do seem to influence choices available in the eyes of potential employers.
Do you mean that you have lost your job?I do know that I will have NO money available to me whatsoever in 4-5 weeks. Absolutely NONE.
Are you entitled to any benefits? - check here www.entitledto.com.
Can you explain your circumstances and we may be able to help more effectively?THE BIGGER CONCERN IS AS FOLLOWS..
I have a home which is valued considerably higher than moneys I owe which is a positive. We tried last year to sell our home for a fair price. There was little interest as there are a lot of houses for sale in our small town.
I know that if i approach my mortgage company they will ultimately seek to repossess if I end up missing 3-4 payments. I do know that there wont be enough endownment available to pay off the mortgage in 3 years when the mortgage comes to an end.
Hi if you tried to sell it at a fair price and it did not sell, it may be over-priced for the area but see VS's comments above.THE MAIN QUESTION IS AS FOLLOWS.
Do mortgage companies who subsequently trigger the sale of the house forward any profits (whats owed versus what they sell for) end up giving me the difference (profit from owed against sale price) or do they literally try to agressively sell the house at a price they know will get a quick sale plus cover the moneys owed to them or do they look to get a fair price that does subsequently help someone like myself.
In a way clearing the house and paying the cards perhaps gives me a new start. Hopefully a new job allows me then to be free from debt and look to long term rent as my credit rating wont be good as can be imagined.
Desperate for advice on these aspects
Thankyou
Sam
Sam
Starting point.
If you are not working, then you need to sign on, urgently. Even if you do not get contributions based JSA and are not entitled to income based JSA, this means that you NI contributions protected.
You may also be entitled to other benefits, depending on whether you live alone or with a partner. Your mortgage interest payments will also be covered after 13 weeks.
You have recieved a lot of good advice re the responsibilities of mortgage providers dealing with a repossesion. You will definately get more selling it yourself than if you let it be repossessed.If you've have not made a mistake, you've made nothing0 -
Sorry DVardysShadow,
I meant I was a little unsure what you were suggesting. My apologies. Hopefully I will get it soon ;-)
If you go over to the other forum, you may find a thread about a lady who recently sold her house at a very low price.
It seems that her estate agent, the solicitor he recommended and the purchaser were in cahoots and defrauded her of £10000s.
She put her house on the market and there was very little interest. Having not sold a house before and knowing the market was slack, she trusted the EA to do as much as possible to sell the house.
It appears that because she was not pro-active in chasing them to get a sale (and perhaps because there was no mortgage), they delibarately failed to find her a buyer at the market price so they could profit from the eventual low price she accepted.
This is why DVS is suggesting you ask a friend to pretend to be a potential buyer, to find out if his interest in the property is forwarded to you.
If you want to sell the house, you need to de-clutter, think like a buyer and make it appealing.
The folks on the housing forum will help, although they will be very honest with you about the deficits in the house. get it right and you might make a tidy profit.If you've have not made a mistake, you've made nothing0 -
And yet other threads about people trying to view repos and never being allowed to view or having their offers stonewalledIf you go over to the other forum, you may find a thread about a lady who recently sold her house at a very low price.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards