Dead End? Young Couple fighting Loan

platelicker

we are offering voluntary surrender cos our sollicitor said we should - is this a bad idea?????

We tried to sell our own house (different one) to help but its been on market for 18months now and only almost completed once. We had the other houses valued with a view to putting them on market, only to find they were worth much less than we paid for them.

I think what Im really hoping for is that someone here will tell me that the banks will take them off us, our credit ratings will be screwed, and at worst, we will have to pay off maybe 10k more.........

any chance?????.........


Thanks for all the help guys btw

CH27

You will have to pay the difference between what you owe & what you sell the houses for.
Plus you will have to pay interest accrued on missed payments etc.

platelicker

Am I right in presuming that the banks will sell the houses for whatever they are offered, ie nowhere near their value?

Would it be standard practice for the new payments after all this to be setup as a new loan ( ie much smaller instalments?)

CH27

platelicker wrote: »

Am I right in presuming that the banks will sell the houses for whatever they are offered, ie nowhere near their value?

Would it be standard practice for the new payments after all this to be setup as a new loan ( ie much smaller instalments?)

Yes to your first question.

I don't know about your second. Sorry.

platelicker

Thanks guys, I really appreciate your help.

Im frantically looking through the forum to see if I can help anyone in return, but its way outside my area of expertise.......... Ill keep looking though..........

MrsTinks

Northern Ireland might be different to England but there should be a debt charity that covers it... Please make sure they are a charity and not a profit company! Ask their advice on the options
If it's like the UK I would have thought you could go for bankruptcy if the equity in the 3rd house does not cover the shortfall in the second two. However you need a LOT more discussion before you consider this option...

redpete

platelicker wrote: »

Am I right in presuming that the banks will sell the houses for whatever they are offered, ie nowhere near their value?

Their value is what someone is willing to pay for them, not what you hope they are worth.

platelicker

redpete wrote: »

Their value is what someone is willing to pay for them, not what you hope they are worth.

Fair point, although when I talk about their value, I mean the lowest of 4 valuations from different estate agents - we are under no illusions in that way.......

geoffky

Get rid of your crap solicitor.....you may well have a try at selling the houses yourself...and boy what where you thinking messing around with property in the biggest housing bubble in history..good luck...

dancingfairy

I would suggest you talk to the debt charities - I'm sure National Debtline, or CCCS must have a Northern Ireland section? Also do you have anything like the CAB? they might be able to help?
Also I can't see how you expect to be left with 10k to pay? the houses are apparently worth 25k less than the loan and you might not get that price so that is going to leave you with more than 25k debt. Also do you have other debts?
How much equity is in your current home?
df