Urgent Help Please, Re: Housing and Repossession

David1178

Hi
been reading this board for what feels like a lfetime but only just registered.

My wife and I have been having serious money problems for a while now, which have been so stressful over the past year that I have been put on depression tablets from the doctor, and to be honest I just can't cope with it any more.

One of our debts is that we are 2 months in arrears with our mortgage. Thanks to having one of those lovely 125% Northern Rock mortgages, we owe 104k on our mortgage but right now the house would be lucky to be worth 75k

One of the factors increasing my depression is the fact that we live here with our 2 year old daughter and do not live near any family. it will take years of paying this mortage before we even break even by selling, and to be honest I can't handle another year of this pressure, so we are wanting to just pack it all in, let them take the house back, and rent somewhere back home near to our families.

What I was wondering, is how long on average would I have if I stopped paying the mortgage this month (as I have no other way of saving enough for a rent deposit) until they actually took control of the house?

bearing in mind I am 2 months in arrears already (but in an arrangement to pay 700 per month back instead of my contracted 670 per month to try and clear them).

We have no emotional ties to this house and just want out of here before we crack up and have a breakdown. But I am scared I don't pay this month and get kicked out within a few weeks with not enough money for a rent deposit.

sorry for the long post, but I am at my wit's end here and have read similar posts on here before, so hoping someone can help.

I undertsand it looks awful that I am just wanting to not pay and let them take my house, but I can't afford to sell it, my credit rating would prevent me getting another mortgage even if I did have the money, and I am just under too much stress. it is affecting my marriage and I have a baby to think about. I don't want her seeing me upset and sad all the time, i just can't handle any more of the pressure and need to get out.

I know they will chase me for the shortfall in whatever i owe, but I just need to know how long I will have until they take my house.

thanks for any help. i phoned CAB and all they could say was talk to your mortgage lender and see if they can lower payments to help you keep the house. they didn't understand that I actually want to just get it repossessed. I know there's such a thing as voluntary repossession but does that mean they will take the house faster?

David1178

also should I phone northern rock or not say anything to them?

I don't want to phone and then they've got me marked as someone who's about to stop paying and then they push the repossession through faster.

sorry for rambling but I don't know who else to talk to

NorthernLas

David - I think you need advice on this before you decide on such drastic action. It may seem the best thing at the moment, but you sound like you are under a lot of stress.

There will be people on the forum who have done just as you are suggesting, I'm just not sure which board they would be on (bankruptcy perhaps?).
Shelter have information about mortgage arrears and they have a specialist department. http://england.shelter.org.uk/get_advice/repossession/mortgage_arrears

You have an agreed payment plan to pay the arrears, can you pay this?
Why not post a SOA http://www.makesenseofcards.com/soacalc.html and the people here can suggest what you can do. I know this does not get you closer to your family, but it could reduce what you pay out over the long term

David1178

Hi

thanks,

I know it is drastic but I have been considering it for a long time and it seems my best option.

I do not want to live here any more. I cannot afford to live here any more, and I can't handle the stress that living here is causing me any more.

I have no problem with them taking the house back, I just wondered on a rough timescale of how long it all takes to go through, as I need time to save some rent money first.

podperson

I agree you need more information but I'm fairly sure that due to new government regulations they need to give at least 6 months now before starting repossession proceedings. I've finally resolved myself to voluntary surrender this month since we have just been given a court date but that has taken over a year. They definately can't do anything within a few weeks. Have you tried speaking to them and seeing if you could do reduced payments or interest only for a few months? This would mean you were still paying something towards them but would have spare left over to save for a deposit.

David1178

on hold to them just now. stupid hold music is driving me mad.

I reckon I need about 4 months to get enough for a rent deposit and first couple of months rent

then I guess I will fail a credit check for a rented place, so what happens do I just give them a few months in advance or get a guarantor?

aaah my head is buzzing with all of this.:mad:

KiKi

Hi David

First of all, please take a deep breath and go and get a cup of tea / coffee / hot chocolate and then come sit back down at your computer!

I can completely understand you just wanting to walk away - I've done that before with a flat (not in arrears or negative equity, but I've walked away leaving behind money that I could have had because the stress was too much).

And, you know, it may well be the right thing to do. However, best assess your options first. You say that your financial problems have been going on for a while, so it sounds like it's not just the house. Secondly, if you didn't have the financial problems would you still be looking to move away? Thirdly, depending on your financial situation there may be options which allow you to come out of this better off, and still without the property.

If you are determined to go ahead with not paying, it will be months before they can take the house (although I couldn't give you a number), so you have time to save for a rent deposit.

Moving to be with your family may be better for you, and renting may be a good option. But it's still expensive, and you have no investment for the future (not that houses are a guaranteed investment, but they're a pretty good option). Be aware that this will affect your future ability to get credit. And be aware that although this will take some emotional stress away, it will not necessarily solve any other financial problems you have.

Regardless of what you do with the house, you would do very well to post up your SOA (statement of affairs) with incomings and outgoings, as the fab people here might be able to help lessen any other stress you have with other financial issues. They may spot things that you haven't seen before, and that might make things seem a bit brighter.

Best of luck.
KiKi

Workie_Ticket

You definitely need advice on this from one of the debt charities perhaps? Even if you walk away from the house you are still liable for the shortfall between what you owe NR and what they sell the house for. Based on the figures above that would be £29k, more if they sell it for less than £75k, less if it sells for more.

Can you not tough it put until the housing market picks up?

David1178

Even if I didn't owe a single penny to anyone else I would still be looking to get out of this house

there are too many bad memories and it is just like a weight around my neck.

I have just read that northern rock will not begin proceedings until 6 months in arrears? I am 2 months just now so maybe that will buy me some time?

and I guess after those 6 months arrears and proceedings start, it would take a month or so to all go through? so I maybe have 4 or 5 months?

I know it won't sort my other debts, but we are totally isolated here and my depression is taking it's toll on my family. my doctor said he thinks the best thing for me would be to move back to the area I know, and be near friends and family.

Once I am sorted with that, I can then proceed to tackle my other problems in a better frame of mind, without worrying about being able to feed my baby and running out of money before payday

current rents in the area i want to go are approx 200 cheaper than my mortgage, and we will also save over 100 in travel expenses

David1178

Workie_Ticket wrote: »

You definitely need advice on this from one of the debt charities perhaps? Even if you walk away from the house you are still liable for the shortfall between what you owe NR and what they sell the house for. Based on the figures above that would be £29k, more if they sell it for less than £75k, less if it sells for more.

Can you not tough it put until the housing market picks up?

Hi

thanks for your input

I think it iwll be a long time before the house is in a position where i can sell it and break even

the house across from me is for sale for offers over 52k. I would be here forever

NorthernLas

Re-read Kiki's post - isn't it worth considering that you can come out of the situation without the house and as little debt as possible?

If you can lessen the stress of other financial issues it might help your situation in the short term. If nothing else, you are doing something positive to sort things out.