Sticky Situation - Any Advice / Its Happened to you?

shaunc196

Hi All,

Under my current circumstances, its looking like I am going to have to sell my property ( its a very long story, beleive me ) so my wife and children can be housed by the local Authority. Basically because she is on the mortgage, they won't help with housing her ( not me, we are seperating ) . If we take her name off the mortgage, then she is making herself intentionally homeless.

Here's my dilema. The house payments, and secured loan payments are upto date, no one arrears in 9 years. I can afford to keep the house, but cannot afford to pay for house for me, and my excisting house.

Now if I was to sell the property, there is negative equity, quite a bit of it to be honest. My only option would be to sell, move in with parents, to build up a deposit for rented house. What happens to all the negative equity? Does the secured loan company ( as they will be the ones that loose out ) change it to an unsecured loan, and sting me with massive interest rates?

I don't have anything else they could possibly secure it on.

Any advise would be very greatful. I don't want to sell, as in 3 - 4 yrs time, the NE will be swallowed up.

Thanks in Advance

MJMum

You are in a similar situation to my hubby when he separated from his practice wife. House was in negative equity, so she took a removal van to it when he was at work (I'm sure this won't happen to you!) to get anything of value, then she got housed by a housing association because she told them that he had thrown her out. (And yes, they had a joint mortgage \ ownership of the house). So your wife may be able to get housed but this probably isn't the best board to ask - perhaps post over on the benefits board?

shaunc196

MJMum wrote:

You are in a similar situation to my hubby when he separated from his practice wife. House was in negative equity, so she took a removal van to it when he was at work (I'm sure this won't happen to you!) to get anything of value, then she got housed by a housing association because she told them that he had thrown her out. (And yes, they had a joint mortgage \ ownership of the house). So your wife may be able to get housed but this probably isn't the best board to ask - perhaps post over on the benefits board?

Where was the Ex Partner staying at the time. Wife is still living her with our three children. Local housing told us, well her, that I cannot throw her out, as she has every right to be living there as well as I do, and not that I would EVER do that, let alone say it

Thanks

silvercar

selling a house in negative equity is very difficult. the secured loan lender would have to agree to move the loan to unsecured. generally they are unwilling to do this , as they lose security. You can't sell a house unless you have sufficient funds to repay all charges.

shaunc196

silvercar wrote:

You can't sell a house unless you have sufficient funds to repay all charges.

Thanks I knew this, just trying to tell the wife the same thing, but she don't wanna listen:mad: And when you think about it, after you pay the first charge, then all the fee's, the second charge are left with Nada, so why would they let me sell the property

MJMum

She had gone to her mothers.

BTW, he didn't actually throw her out!

realwildone

This is why IO loans and negative equity are really bad. I suspect they won't allow you to sell the house making you stay with it and find a way to pay. If you can't it may force you into bankruptcy.

I suspect they would rather do that than swap to an unsecured loan.

shaunc196

realwildone wrote:

This is why IO loans and negative equity are really bad. I suspect they won't allow you to sell the house making you stay with it and find a way to pay. If you can't it may force you into bankruptcy.

I suspect they would rather do that than swap to an unsecured loan.

I did think of that, but then they would end up with even less, as the OR would want his cut also. So I have investigated, if I was to go BR, then the OR would actually let me stay in the house, continue payments, then when the house value had rose enough to clear the debts, then they would FORCE me to sell.

If I was to stay in the house, then there would be no BR and I could sell it in 3 yrs anyway and clear the debt.

MJMum wrote:

She had gone to her mothers.

BTW, he didn't actually throw her out!

If she done that, then the housing people would not house her, as they see this as having a secure roof over her and the childrens house

Catch 22

silvercar

So I have investigated, if I was to go BR, then the OR would actually let me stay in the house, continue payments, then when the house value had rose enough to clear the debts, then they would FORCE me to sell.

if you did go bankrupt you could probably buy the beneficial interest from the OR for £1.

shaunc196

silvercar wrote:

if you did go bankrupt you could probably buy the beneficial interest from the OR for £1.

Hmm, I am intreaged. I have seen, sooty0404 post this on another thread. Something similar anyway. Can they STOP you going bankrupt, even if you are employed and have a half decent wage?

Mrs_Optimist

Would it be possible to say your wife has thrown you out and made you homeless so that you can be rehoused? IT would be easier for your LA to house a single male than housing a mother and kids surely? If you can afford to pay the mortgage PRESUMABLY your wife would be entitled to benefits, WFTC etc if she isnt working and living on her own, which may help financially. I'm thinking short term just to enable you to have a roof over your head, your children to stay settled and to bide your time until the house is out of NE. Or am I missing something? (Probably, its been a LOOONG day)