Desperate and need some advice please.

DTD_2

Not sure where to begin but i'll try, really at the end of my teather

6 years back we were left some money and we were advised to invest in a property abroad we are UK based (I know you can here the groans). The advice was from a family member which we trusted.

We invested 40% of a holiday villa abroad the rest to be mortgaged, but the plan was to sell once built and make a decent profit. Of course no one could have predicted the Global Economic Slump and the property was worth much leass by the time it was built, so we took it on the chin and decided to furnish and rent it out until the markets picked up! last year was the first full year and we only managed to rent it out 3 times whcih did not bring in any income and we are struggling.

We can't even afford to visit it for a holiday as we can't afford the flights because we are paying the mortgage on it each month. (talk about ironic)

We also have 3 young children so any spare money goes on them.

We have never had any debt before except for out UK Mortgage and a car loan, always had jobs from College/Uni and paid our way!

Now 3/4 months ago, my wife became ill and we found out she has a Tumour on her brain and is unergoing tests right left and center and an operation looks likely.

She has been off work and our income has be reduced conciderably, so i have not paid the mortgage on the villa in a few months, and now i am being summond by the bank to pay! quite frankly i am scared, i ahvenoit told the wife as she is to avoid any stress so i keep on smililing feeling sick to my stomach inside every day. -

I need some help, any help anything to focus us out of this mess

Thanks for reading.

Boris_Allen

Sell the villa asap

wannabee_in_credit

I agree... get rid of the villa asap.
My mil had a brain tumour a couple of years ago and it's stressful enough dealing with that without the added stress of debt and money etc.
Cut your losses before they get any worse, and good luck to you and your family.
Do you have any kind of critical illness cover to help with finances while she is off work?

JustinCredibleGillespie

Selling looks like the only option. Start looking into the fee's etc to get it sold, it's not worth having when your wife is ill & you have 3 small mouths to feed.

JCG

xx

debtfreewannabe321

i'm sorry to hear about your wife - i agree with the other posters though, sell the villa. Have you checked to see if you are entitled to any extra benefit whilst dw is off ill ?? Sorry i can't be more help. Perhaps posting a SOA on here might help you cut back a bit. But i'd say the best bet is to cut your losses.

DTD_2

Thanks for the replies,

Yes selling the villa was the first thing i thought of, but we would not have enought to cover the mortgage if we sold as the proces have been slashed.

The mortgage is with the bank in Cyprus, what would happen if you just did no pay, would we lose the villa? or would they come after more?

TBH I areally watch our spends, we always watch the boards on here for the groceries and bargain buys and ways to save money, we really are as cut back as we can be.

We have around 60% equity in our UK home, and we have thought to sell and downsize to cut the mortgage right down here.

Also i have been trying to come up with some sort of raffle idea for the villa, you know sell 3000 x £5 raffles and the winner wins the villa all paid for and we would be debt free and there could be some moeny in it for a charity. - Anyone know where i could start on this?

*zippy*

Found this, but it dates from 2008 so you would need to do further research and find out the law in Cyprus

http://www.telegraph.co.uk/finance/economics/houseprices/3172563/Home-owners-who-raffle-their-properties-risk-criminal-offence-says-Gambling-Commission.html

http://www.telegraph.co.uk/finance/personalfinance/borrowing/3065422/Cant-sell-your-home-Why-not-just-raffle-it.html

I wish you and your family well, hope you can get out of this quickly x

LoulaBelle

Have you spoken to any Estate Agents where you have the Villa to see if people are buying at the moment?

[Deleted User]

I don't know Cyprus well at all, but could this be rented out right now whilst you are making some arrangements?

Where in Cyprus is the villa and also what is it near to, what do you charge to rent this out per week? Do you have a site that you use to advertise.

I can see why people are saying to sell, but as you clearly know it is not viable to sell due to the negative price.

Did you say you had been in contact with the lender and explained the situation, just so they give you more time to start with?

I was very suprised to learn that you could not rent this out, even at a bargain price this will surely help!

Boris_Allen

DTD wrote: »

Thanks for the replies,


The mortgage is with the bank in Cyprus, what would happen if you just did no pay, would we lose the villa? or would they come after more?

Sell the villa and stop paying the mortgage. Let them default you, as it won't harm your credit rating here in the UK and there's nought else they can do.

*zippy*

Could you go with an agency that will rent it out for you or offer it as a long term rental rather than a holiday let?