Can I avoid losing my home?

luckymillie_2

My house is worth approx 100,000 in joint names with myself and my ex husband. The outstanding mortgage is 47,000 and we have a secured loan of 46,000. My ex husband is now refusing to make any payments towards the secured loan and as my income is only 12,000 I cannot afford the monthly payments. (The loan is 565.00 per month over 10 yrs). I have two children and I have lived in this house all my life so I really do not want to lose it. I am considering selling my home to a company that will rent it back to me. However as I wont get full market value I will not have enough money to pay off the secured loan in full. Will the loan company agree to the sale as long as I agree a payment plan for the remainder of the balance? I really will be devastated if I have to move, I dont know where I would go, can anyone advise me?

CLAPTON

it must be a very distressing time but you do need to take a very serious look at the financial options.

if you were able sell and rent back, can you afford to run the house on your income...in addition to the bills you will be paying rent and the debt repayments...you need to write down a proper detailed budget to see if you could even afford to live there after a sale. if you go this path and find you can't afford it you may be forced to move anyway.

such a deal usually means you get much less than if you sold yourself. maybe you should bite the bullet and sell ..at least you will then be left with no residual debt and you can rent a new property and start again.

as a start, find out how much the house is actually worth, and how much a buy and rent back would give you and how much they would rent the house to you so you can start working out the pros and cons each option.

luckymillie_2

Thanks, I think you are right I probably do need to bite the bullet once and for all and sell up. I dont really think i have much choice, i think i am just scared of the whole process and not knowing where to start or where to go.

lynzpower

First up You need to check out whether your husband CAN stop his payments, and what the recourse is for him and you.

Second,if you do decide to sell, you CAN do it very cheaply, I sold my place for under 1200 including sols fees & estate agent fees, and that included "doing up" I begged borrowed niceties, lamps etc and generally tidies the place up. I used house network which will sell your place for 500 ( 200 upfront, the rest after the sale. theres quidco.com cash back too ( although I havent got mine yet!)

Get 3 estate agents round to do a valuation. then you take the average of those 3.

Do you want to do a statement of affiars for us to look at ( read southern scousers sticky FIRST TIME POSTERS)

Dont worry theres a million experts who will help you through whichever path you choose, here.

CLAPTON

i would also suggest you try too persuade your ex to continue paying until the house is sold. if he doesn't, its possible/likely that both your credit records will be damaged and anyway the underpayments will come out of the net balance of the sale.

go to the CAB and ask their advice about whether you would be entitled to be rehoused by the council once the house is sold... it may not be an option but worth finding out.

presumably he has moved out.. you should be eligible for reduced council tax as a 'single' occupier.

luckymillie_2

Yes, my ex husband has moved out but they wont let me claim single person council tax discount as he wont prove to them where he is living! He is living with his mother and has just chucked his job so he has no money. i think he knows what he is doing and is taking the easy way out to avoid his debt. Thanks to you all for replying.

lynzpower

have you appealed this decision? Its not your fault is it that he chooses to evade his duties so why do you have to pay for the privelidge. As you know hes at his mums, let the council know this. they can go round and door knock him.

Why SHOULD you have to bear the brunt of it- appeal!

TOBRUK

I am definitely no expert, but reading through I would be concerned that you would just sell up. The reason for this is that you have two children and after selling where will you go - renting a place could be just as expensive as your mortgage (depending where you are of course) and you would never get to buy another property on your salary - you are working aren't you?

luckymillie_2

Yes i am working but i think that because the loan is secured and i cant afford the payments they will force me to be repossesed. i darent tell the loan company yet that he wont pay because i am scared that they will just go for repossession straight away, i really am uncertain what to do at the moment. i would prefer to sell and rent back my own house but i dont know if the loan company will allow me to sell this way, or even if they have a say in it, as if the house sold for less than market value i will not have enough money from the house sale to completely pay off the loan in full.

TOBRUK

I really think you should go to CAB as soon as you can so that you know exactly where you stand. As your mortgage is in joint names if you were to sell half of what is left after sale surely your ex would receive half although he is now refusing to make any payments. You really must go to them and not put it off any longer, I'm sure you will feel better when you know where you stand and what your options are. Good luck to you and let us know how you get on.

silvercar

the loan company are unlikely to repossess if they know that they won't get repaid. If they start threatening to repossess, make sure they understand that, in a force sale situation, the mortgage will account for most of the proceeds and there will be little left for them.

The mortgage company have more to gain by repossession, so that should be your priority debt.

Are you getting maintenance from your ex? If not you need to get tough with him, CSA if necessary.