God knows what to do

harrisc0

God knows what to do for the best
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Hi - well not even sure if this is in the right place but got no idea who we can talk to - we are mortgaging currently and keeping up payments on an interest only mortgage, with a debt agency with £34k debts and hubby is going to lose his job within the next 12 months as he works for a large organisation that is closing.

His income is our main one, I work part time and we have 2 children. Once his job goes we will pay our debts off with redundancy but then can not afford the mortgage so my question is -

Would we be better off at cutting losses now and trying to sell our house and move into rented and then when it happens let housing pay part the rent and we will top up from my wages till he gets work

Or

Stay put for now, we are about to miss our first ever mortgage payment in 10 years due to an unforeseen bill and then probably have the house repossed anyway and then look for rented?

fatbelly

harrisc0 wrote: »

...we are about to miss our first ever mortgage payment in 10 years due to an unforeseen bill and then probably have the house repossed anyway and then look for rented?

Would you be able to make the mortgage payment (priority debt) if you failed to pay the debt management company and/or the 'bill' (non-priority debts)?

You seem to assume that your OH will be unable to find another job for such a considerable period that possession and eviction will happen. Is that realistic or pessimistic? If you keep the mortgage lender informed, this is not a quick process. I see many people in court with a year or more of arrears. If there's enough income to make an offer at that point, we get a suspended order and they stay in the property for as long as they comply with the order.

harrisc0

We would be able to make the mortgage payment yes but not the debts, we missed them at Xmas time

Only assuming the worst as has income is over £2k a month and mine is £689 which will cover mortgage and council only and with 2 children (4 and 8) no food etc.

fatbelly

For now, the mortgage is more important than the dmp.

When he gets made redundant, the redundancy package can be used to pay the mortgage and buy time till he finds another job (OK-may not be so high-paid)

If you then get to a stable situation and still have some of the lump sum left, consider making full & final offers to the non-priority debts.

And today's a bank holiday - get out and do something nice wth the kids!

harrisc0

And today's a bank holiday - get out and do something nice wth the kids!

Thanks for that put a smile on my face

Memory_Girl

Fatbelly is right hon - take this one step at a time.

Tomorrow phone the DMP provider and explain about the "unexpected bill" - maybe look at adjusting your budget so that you are making provision for that bill in the future.

Pay your mortgage and make token payments to the DMP for your creditors for this month.

Im hoping that you are with one of the FREE dmp providers - like CCCS or Payplan etc. If not the peeps on here can talk you through how to transfer so that EVERY penny you pay goes towards your debts.

Pull all your information together and create your family SOA - the people on here are ahem!!! "Fair but firm" and will help you find any teeny bit of wiggle room so that you can start to build up your emergency fund. Your family project for the summer is to find ways of living frugallly and having fun - and it can be done love:)

There is a link for a SOA on a sticky at the top of the page - this is your road map to freedom:D

Then when OH gets made redundant you use his redundancy to keep paying the mortgage and the DMP for as long as it takes for him to get another job - the creditors are getting their money, but they are getting it at what you can afford and you need to make your family a priority IYSWIM.

You have your home, your kids, a hubby and the people on here to help .................. more importantly, he has got notice that he will be made redundant and it wasn't last Friday IYSWIM. Time is on your side and you are a long way off being repossed.

One step at a time- and the step for today is to pack a picnic and take your family out and get some fresh air this Bank Holiday monday - everything else can be taken care of.

MG

sunnygirls

Hi when your husband loses his job and if you work more than 16hrs you will be able to get tax credits ,do the benefits checks inputting only your wage . Do you have insurance on your morgage? this usually pays interest on your morgage for 12 months . Last year we were in similar position ,i did all of above and realised we could manage just ,but luckily my DH got another job, so hang in there there is hope . Hugs to you ((( ))) because i know its a terrible time .

harrisc0

Thanks for the info - sadly we done have mortgage protection and we pay interest only if we were to take out mortgage protection now would we be covered ? Although the fact that the company he works as a contractor at has been on the news nationally about their closure - it is a major blue chip company