Will we lose our home?

RAS

silvercar wrote: »

I don't see how going bankrupt will help. Your mortgage would not be part of the bankruptcy, so you would still have that debt. Given that I assume you are prioritising the mortgage over other debts, all bankruptcy would do would be to get rid of the other debts - it wouldn't pay your mortgage and that is what you are struggling with.

Selling and renting is an option IF the rent would be less than the mortgage. Though selling property takes time and you don't seem to have time to sort yourself out with already 6 months arrears.

If it won't then the arrears will get worse and it won't be long before the lender is taking you to court for a repossession hearing.

The correct advice is that if you go bankrupt, your unsecured debt is cleared, that may free up enough money to cover the mortgage debt.

If you go bankrupt and the house is repossessed, any shortfall in the money received from the sale becomes unsecured debt and is covered by your bankruptcy, as long as you do not sign any letters from the mortgage provider after bankruptcy, which make you liable for the shortfall.

silvercar

RAS wrote: »

The correct advice is that if you go bankrupt, your unsecured debt is cleared, that may free up enough money to cover the mortgage debt.

Except that OP should already be prioritising the mortgage and not paying towards other debts. With the mortgage in 6 month arrears clearly there is not enough money without the secure debts so bankruptcy may not be the answer.

If you go bankrupt and the house is repossessed, any shortfall in the money received from the sale becomes unsecured debt and is covered by your bankruptcy, as long as you do not sign any letters from the mortgage provider after bankruptcy, which make you liable for the shortfall.

I agree but OP appears to want to keep their home, in which case the mortgage shortfall won't fall into the bankruptcy as they will continue with the mortgage payments.

jinky67

sleepless_saver wrote: »

Using capital to pay off non priority debts in full is not a good idea. For HB purposes they could well be treated as if they still had the money, as they would have chosen to pay back more than the minimum required instead of using the money for living expenses.

I may well stand corrected then, as I wasnt aware of that

poormummy_3

Thank you to all those who have tried to help me with my situation. Unfortunately, I feel just as confused as when I first posted (and also quite shocked and hurt by some of the comments). Although people have suggested some different options, I am still not sure what is the best way forward for my family, and I have found it difficult to pick out the helpful financial advice amongst the unhelpful comments about issues that I didn't come on here to discuss.

With mental health problems it is difficult to focus on financial matters, particularly when having to make such important and highly-emotive decisions.

dmg24

poormummy wrote: »

Thank you to all those who have tried to help me with my situation. Unfortunately, I feel just as confused as when I first posted (and also quite shocked and hurt by some of the comments). Although people have suggested some different options, I am still not sure what is the best way forward for my family, and I have found it difficult to pick out the helpful financial advice amongst the unhelpful comments about issues that I didn't come on here to discuss.

With mental health problems it is difficult to focus on financial matters, particularly when having to make such important and highly-emotive decisions.

So what help are you asking for if you know that you are not able to process the information given? For that matter, why is your husband not dealing with this?

Oldernotwiser

poormummy wrote: »

With mental health problems it is difficult to focus on financial matters, particularly when having to make such important and highly-emotive decisions.

Then surely your best bet would be to let your husband do most of the fact finding on these issues and for him to take a lead in finding the answers to your problem?

poormummy_3

I am dealing with our finances as I feel our situation is my fault, and so it is my responsiblity to find a way out.

I am able to process information, but I find it difficult to focus - particularly when there are so many different views and consequences to weigh up. And every post that doesn't come across as being helpful and courteous makes it more difficult to see clearly and just contributes to me wanting to slit my wrists.

jinky67

have you posted on the DFW board about your situation as well?

Frogling

poormummy wrote: »

But long-term, I can't help wonder if we would be better off waiting for that notice of reposession so we could be eligible for the mortgage rescue scheme and have a housing association buy our house, and then rent it back. It would feel a bit more secure than renting privately, and we would pay 80% of market rents.

Why on earth would you want to have the stress of waiting and wondering when the reposession order is going to be served on you? Your comment that I have quoted makes it sound as though you are happy to drag your feet and not take positive steps to getting yourselves out of the hole you are in. Why would you want to let things get that far down the line?

I am not going to comment on your mental health, other than to say that I wish you all the best and hope that you are getting the support and help that you need to guide you through your depression.

I would suggest a visit to C.A.B. and also getting some financial advice from somebody who is qualified, and with whom you can give full disclosure so that they can help you find solutions to your problems.

dmg24

poormummy wrote: »

I am dealing with our finances as I feel our situation is my fault, and so it is my responsiblity to find a way out.

I am able to process information, but I find it difficult to focus - particularly when there are so many different views and consequences to weigh up. And every post that doesn't come across as being helpful and courteous makes it more difficult to see clearly and just contributes to me wanting to slit my wrists.

If you cannot focus, you cannot process information. You are not helping yourself by a) dismissing good advice and b) trying to sort out something which by your own admission you are not capable of handling.

You have a very simple option - tell your husband that you are unable to deal with your finances, and that he will need to deal with it.

Finally, if you feel like slitting your wrists, you should be presenting yourself at A&E or contacting your Crisis Team, not talking about your finances on here.