SMI shortfall-cant pay, risk of repossession

kelloggs36

welshmoneylover wrote: »

There are working couples who are struggling to make ends meet, why do you think those who are on benefits should receive more money?

Can't you ask the children's father to contribute toward the mortage to help you out?

I have been in a similar situation, although I was lucky in the end as I allowed the house to be repossessed as I moved in with my then bf who is my hubby of 13 years. However, at the time, the lenders were extremely unhelpful and rude. We tried to rent out the house as it was in negative equity - what a fight that was! The lender refused point blank, even my pleas that something was better than nothing fell on deaf ears. I went to great lengths to get the shortfall made into a 'deed of covenant' so that I could have an unsecured debt to repay after the house was sold (we had sold but because of negative equity, lender refused permission to sell). Eventually the house was repossessed and sold at auction - at a loss, so actually the lender made my personal situation worse as they had refused to let me sell when I had a buyer, yet sold the house for even less, leaving me with not only the shortfall, but all the monthly repayments due for the time it took, plus legals etc.

My ex refused to pay anything towards the mortgage even though he was liable as much as I, but as he wasn't living there, he felt he shouldn't pay. He also refused to pay child support, hence no money to pay the mortgage. I had no choice but to let it go, but looking back, it was the best thing that could have happened.

In the long term, if you can't afford to make the repayments it may not be the end of the world to let the house go and be rehoused by the council; with children you would be a priority. I'm not saying it will be pleasant or easy, but you will get sorted, and eventually you will be okay, but you have to be proactive - get on the council list so you can bid for properties. Good luck.

ManxAvenger

I thought that if you didn't pay your mortgage, that was classed as making yourself intentionally homeless and therefore ineligible for housing? I was told this when lookin into way of getting out of an mortgage with ex, who didn't want to help financially wih either house of children, just wanted to make me struggle.

Jowo_2

ManxAvenger wrote: »

I thought that if you didn't pay your mortgage, that was classed as making yourself intentionally homeless and therefore ineligible for housing? I was told this when lookin into way of getting out of an mortgage with ex, who didn't want to help financially wih either house of children, just wanted to make me struggle.

The Shelter website has good information about the definition of 'intentional homelessness' and it isn't just about point blank refusing help to those with mortgage/rent arrears but is about whether or not the person could have paid but did not, and what steps they took to prevent it.

Jowo_2

kelloggs36 wrote: »

...We tried to rent out the house as it was in negative equity - what a fight that was! The lender refused point blank, even my pleas that something was better than nothing fell on deaf ears. ...

This is actually quite sensible though obviously it didn't feel like this to you. The housing forum is full of posts from tenants who are being evicted because the owner defaulted on their mortgage and the property is being repossessed.

Also, if the landlord has a void period or the tenants don't pay, then they are still stuffed.