Another potential mortgage rescue failure.........

fatbelly

dancingfairy wrote: »

I thought that going through mr was best to do before BR becasue then you don't have a mortgage - you pay rent to the housing association and may be able to claim housing benefit and then any extra you owe onthe mortage if you are in negative equity becomes an unsecured debt and you can then include it in any bankruptcy. I know AngiePane has been through this the other way around and went bankrupt first and then tried to go through the mortgage rescue which seems to have caused no -end of problems.
Are you in negative equity?
Also do you know what sort of rent your house would fetch? if you had a a rough idea of what you might be charged you could look on the entitled to website and hopefully it would give you an idea of what amount of housing benefit you could get to help with your decisions. I think there is are rules on how much rent the housing association can charge you as a % of the market rental value but I'm afraid I don't know how much this is.
Firstly you need to wait and see what the rules are for the mortgage resuce scheme and whether you'll be able to apply or whether you think you will be eleigible in the near future I would have thought. If this looks like an option then persue it, if not then I think I would be inclined to save up for a new rental place and then look at going bankrupt (this is my personal opinion and I am in no way qualified so please don't just go off what I'm saying) - I am sure others will be able to help you far far more.
Good Luck
df

I think this is good advice and I also stand by what I said previously.

Under MRS, the rent is set at 80% of an 'open-market' rent

sillygirl73

Thank you all for your good advice. Am not going to rush into anything and will research all options once we find out what happens at the spending review.

Just as an aside, I have just input my details into the DirectGov benefit calculator and it says that we MAY be entitled to an extra £200 a week!! Does anyone know how reliable this is? Have not been claiming JSA as was dismissed from job in May, but should now be able to now. Does this cause other benefits to kick in? There is also a possibility that we could get help with the support for mortgage interest scheme (although not holding my breath;))

Thank you for all your comments on this thread and the other few I have created.........it is wonderful having such a wealth of knowledge and common sense available:)
Anyway............things could maybe looking up.

Angiepange

Really hope things are looking up for you now.

I don't have much experience of the benefit system but your CAB adviser will find out exactly what you are entitled to.

Wishing you all the best and keep us updated with how you get on xx

fatbelly

fatbelly wrote: »

We're expecting some sort of announcement in next week's spending review. Personally I'm an optimist and I hope the mortgage-to-rent option survives, though it may get tweaked.

So my suggestion is wait for next week and, if it's not killed off completely, give it a good push.

Optimism rules! MRS is not dead yet:

I believe that we have secured a package that will help deliver the homes this country needs over the Spending Review period. Despite the fiscal constraints, the Government is still investing nearly £6.5 billion of taxpayers’ money in housing, with £4.5 billion to fund new affordable homes over the Spending Review period. As part of this investment we intend to provide £200m so that the Mortgage Rescue scheme can stay open to support vulnerable homeowners threatened with repossession and £100 million to bring empty homes back into use.

Full text from the Housing Minister as a word doc here

lib1958

I been informed that My MRS will not be going ahead,despite contacting my local MP Shelter and Local Council.It appears that the North West has a capped amount of £135.000 my house was valued at £170.000 in Feb this year.I've 4 children.It seems that one Housing Association doesn't want to because it would cost £35.000,to put right the defects in the property another Syndicated won't because it's not in the area they want.Going to start ringing the council and Shelter on Monday as I've seen 1 go through.I've got the Survey and the full structeral survey these were sent to me.I've ran my own business for 14 years nothing fancy just enough to live on and pay the bills etc becasue the Industry I work in has fallen apart.This has left me in the position I'm in.My Husband managed to get a job 39 hrs a week minimum wage.Still not enough to pay the mortgage and secured loans on ther property.The amount outstanding is £105.000 the mortgage and £35.000 secured loans.I t appears to me that if the property doesn't fit the criteria no one wants it despite being told by Shelter the children are a factor for it going ahead.To say I'm stressed is an under statement just had one of stressful years of my life.I was ill at xmas and into new year with a septic life threatening condition,one of my older children lost their baby at 18 weeks into the pregnancy,my mothers cancer galloped on and appeared in her brain,sadly she died 5 weeks ago inbetween running my business which running at a loss now I nursed her everyday.Just feel like I could scream the place down.I've lived in my house 22yrs and only bought it 6yrs ago under right to buy.So I was a council tenant for 26years.Wish I'd never done it now.I know my local council have had one go through and 2 others were waiting.It's just where to turn to now.