House value less than mortgage?

mi-key

I dont want to be harsh here - but tell your partner to get off his backside and get a real job - he's had a go at playing at being his own boss, and it diidnt work out.

Now he needs to go and get whatever menial rubbish jobs he can - working in a factory, a shop, sweeping the streets, in a pub, cleaning - anything to get some money coming in.

The worst case scenario is that he will soon have his house repossessed, and you should be working to avoid that at all costs.

Dont move out and rent somewhere else, as this isnt going to solve any problems as your partner cant sell his house anyway. Move in there, scrimp and save and live on beans on toast but make sure you pay the mortgage each month.

You can get the house fixed up on the cheap by doing most of the work yourself - buy second hand stuff, get stuff from skips, call in favours from mates - whatever you can.

If you can get the house into a lettable condition, then rent it out and move in somewhere cheaper if this is viable, or if you can get it saleable for enough to cover the mortgage, sell it and start again.

WesternExpress

How many people who buy houses today understand negative equity, and how many think that it could possibly happen to them? Especially the ones taking 125% of the value of ther homes?

sniperpenguin

I hae to agree regarding the other half. Time for him to close the business and get some work. Anything - Bar work, menial stuff (cash in hand is a bonus, and there are plenty of people who will offer it).

As you mentioned, he has zero coming in, so time for him to go to somebody for work to make it come in!

tomstickland

Bit of a mess this. I remember negative equity only too well from the early 90s. We knew a young couple who bought a tiny bedsit flat because it was all that they could afford and prices were rising by the week. A year later their flat was worth £10K less than their mortgage (early 90s you bought a bedsit flat for £35K at the peak).

Anyway, I think moving into the house, scrimping and sorting it until it's worth the mortgage has to be way to do it. Repossesion is the other option.

johanne

he is looking for other work (infact has had 3 interviews in the past week) and has wound the business up, and contacted the jobcentre about signing on etc. He has had his "lightbulb" moment as people on DFW say.

I DO live with my partner.. and we have done what we can to the house, begging, borrowing, freecycling, calling in favours from friends, the house is vastly improved from what it was 6 months ago.. we have been living off basics of everything (never EVER been on a night out together or had a date, been the pictures or anything) even livingh off basic food staples.. and both sets of parents have been sending "food parcels" .. ie. bags of groceries with "luxuries" such as meat and non value bread whenever they can.

I didnt post on here for my OH to get a slating, we both know hes screwed up financially, now its about sorting it out... all i wanted to know what what would happen if the house was valued under the price of the mortgage.. im not having a go there, but we KNOW the solutions to getting him out of debt and improving the house on £0 budget... im just unsure about the way negative equity works, never being a homeowner myself and being 21 i missed the early 90's property crash.