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Mortgage shortfall and arrears-charge over second home??
confusedlittlebunny
Posts: 82 Forumite
Hi All,
I am new on here so excuse me if i put this dilemma in the wrong section. I will keep it to the point as i tend to waffle on under stress.
I bought house No1 about 9 years ago, lived their for approx 4 years then moved out (rented it ever since) when i bought house no2 approx 5 years ago.
I still live in house No2 (that I jointly own) and have it on the market to sell.
I am currently in mortgage arrears with house No1 of approx £12k (due to rent void periods etc), I know if i try to sell it I will get a shortfall of approx £60k.
My dilemma is:
1. Can the mortgage company of house No1 put a charge over house No2 to secure the arrears and/or shortfall even if i agree to pay the arrears and/or shortfall if the inevitable repossession happens?
2. House No1 mortgage company are knowledgeable of House No2, can they apply for a charge (they do not know im trying to sell house No2) to secure my arrears and at the most drastic the shortfall BEFORE house No1 has even been repossessed and all the final figures are finalised?
3. I'M not 100% sure house no1 mortage know about house no2, so if they ask me, is it an legal requirement to be honest?
4.I have worked all my life and the only money i have effectively is the equity in my house No2 (that i live in now, which is on the market), can i sell it (use my equity for renting a place, other debts etc), and still agree a payment plan with the mortgage company for the arrears and shortfall over a 10 years period on house No1? (assuming they do not put a charge over house no2 before i have a chance to go through with a sale)
It stands at the moment, that I have agreed to start paying the monthly mortgage plus £40 towards the arrears for six months then review it but i have a feeling i will break this agreement once again as the house is vacant and i cannot afford the mortgage out of my own pocket!
I am so desperate and would appreciate any answers to my questions. Sorry if i have talked away but just trying to give as much info as poss
I am new on here so excuse me if i put this dilemma in the wrong section. I will keep it to the point as i tend to waffle on under stress.
I bought house No1 about 9 years ago, lived their for approx 4 years then moved out (rented it ever since) when i bought house no2 approx 5 years ago.
I still live in house No2 (that I jointly own) and have it on the market to sell.
I am currently in mortgage arrears with house No1 of approx £12k (due to rent void periods etc), I know if i try to sell it I will get a shortfall of approx £60k.
My dilemma is:
1. Can the mortgage company of house No1 put a charge over house No2 to secure the arrears and/or shortfall even if i agree to pay the arrears and/or shortfall if the inevitable repossession happens?
2. House No1 mortgage company are knowledgeable of House No2, can they apply for a charge (they do not know im trying to sell house No2) to secure my arrears and at the most drastic the shortfall BEFORE house No1 has even been repossessed and all the final figures are finalised?
3. I'M not 100% sure house no1 mortage know about house no2, so if they ask me, is it an legal requirement to be honest?
4.I have worked all my life and the only money i have effectively is the equity in my house No2 (that i live in now, which is on the market), can i sell it (use my equity for renting a place, other debts etc), and still agree a payment plan with the mortgage company for the arrears and shortfall over a 10 years period on house No1? (assuming they do not put a charge over house no2 before i have a chance to go through with a sale)
It stands at the moment, that I have agreed to start paying the monthly mortgage plus £40 towards the arrears for six months then review it but i have a feeling i will break this agreement once again as the house is vacant and i cannot afford the mortgage out of my own pocket!
I am so desperate and would appreciate any answers to my questions. Sorry if i have talked away but just trying to give as much info as poss
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