Totally Stuck!

SiV1981

ok

for a bit of background, my dad has just been diagnosed with terminal cancer, he doesn't have good family support where he is and we have his only grandchildren and just, well, NEED to live closer.

BUT....

we have huge negative equity, zoopla gives us a value of 76K, mortgage is for 96K (we overextended, 125% mortgage in 2007, stupid but we don't have a time machine). we also have modest arrears from husbands redundancy and being messed about by DSS over that period (enough arrears for adverse credit but we are in and upholding a good arrangement at the moment). Needless to say we are not allowed to sell and remortgaging is totally out of the quetion!

STUCK!

next port of call was looking at possible rental income... similar properties in our area are fetching just under 500pcm, our mortgage is for 600 plus you'd have to factor in paying an agent as we would be moving out of the county and maitainance, which as we know would be moronic to overlook... all this on top of rent for a new place... sorry our earnings aren't/wouldn't be good enough to support a money hemorrhage of that size...plus we would need permission to let because as covered above remortgaging is a no-no.

STUCK!

ok... so the only option that i can see left to us, is total financial suicide.... "handing back the keys".
we understand that we will not get the full market value and we would still be liable for the probable 40K debt... but i think i'm right in saying it no longer classes as a priority debt.... but to me it looks like 12 years of financial and legal hell...

talk to me guys, what am i missing... i know in a ideal world we would sit tight and try to overpay on the mortgage/do up the house.... but that is just not an option anymore.... any comments would be hugely appreciated!

thanks!
xx

kj*daisy

Could your dad move nearer to you? Sounds likes a horrible situation you are in, but I would do anything to avoid the handing the keys back scenario as it will hang over you for a long time. Take care.

BitterAndTwisted

"Handing back the keys" just isn't an option. Well, not an option which would enable you to walk away. Having a repossession on your credit-file will have a very seriously adverse effect, so the idea of going into rented accommodation may not be an option. Few landlords would be interested in renting to you without a guarantor, if at all.

If you want opinions about having a mortgage-lender be able to pursue you for twelve years for that £40k debt and it being being non-priority perhaps you could ask your question on the Debt-Free Wannabe part of the forum.

Is there any reason why your father could not move to where you are?

SiV1981

i can totally see from an external point of view that that would seem like cut and dried solution but my father does have a good social network where he is, and obviously has medical prefessionals who know him and his condition. plus good medication routines. I don't think pulling him to somewhere without any contacts or friends would do him any favours in the long run.

we are looking for a way to get us out of the corner we are backed into, not to traumatize my old man further,

i know its a doozy of a problem... was just hoping i was missing something.

desperation doesn't even cover it.... its kinda hard to just take lying down that you can't be there to help a dying parent!

currently my best bet is the lottery.... and lets be honest..... thats worse than no hope!

hazyjo

Will you be in the same jobs if you move nearer or would you be looking for new employment too?

Could you all move in with him for a while? Or one of you? Or sort out some sort of rota?

Without being too blunt, have they given you any indication of 'how long'? Are we talking years, months or is it something that's likely to get progressively worse?

Any chance of carers going in every day (there's masses of support out there - use it!), and maybe you spending weekends there?

(Sorry to hear of your news, btw. I'm in the same boat - my dad was diagnosed terminally ill last week. Thankfully my mum's still there, and we're all near enough to help.)

Jx

BitterAndTwisted

Would it be possible for one of you to move to Dad's and the rest of the family to remain where they are? I don't wish to be callous but any arrangement you may come to is inevitably going to be temporary. It might not be good idea to uproot the children from their schools, friends and familiar surroundings for what could be a short period with rather a lot of sadness attached to it.

SiV1981

timings are unknown..

it seems quite aggressive but he is responding really well to the radiotherapy so far.

we would be seeking new employment, which isn't as horrific as it sounds as it's one of the locations where finding employment is SLIGHTLY easier, and i have a good skill-set for the area.

moving in with him, would be possible if not ideal on a very short-term changeover basis or using it as a crashpad, for job reasons, while loose ends are tied up.

he is living alone and while he is doing ok mobility and stuff wise at the mo... as you know it's a very unsure business.

something just has to give!

SiV1981

i see your point bitter and twisted,

but the truth is it would be a nicer locale for the whole family, so if we did this it would be permanent not just to watch the deterioration and demise of a loved one. we would actually like to live there as well..... just to you know, add mud to these already murky waters.

waveneygnome

This is well outside my area of expertise, but..................

To ask bluntly, does your father own his own house? Would it be prudent to assume you would inherit the estate in the future?

Essentially is there a way of using fathers existing 'wealth' to help aid you moving closer by to help out.

Options could include:
Father raises small loan on house, you use loan to help pay rent on new house nearby. You rent out old house to help cover the costs.

Father raises mortgage on own house, you pay off all debts, sell old house, move closer - either renting or buying.

All loans/mortgages would then be repaid once your father has sadly passed.

We were in a simialr position to you 10 yrs ago (but reversed) - we raised money on our house to repay mother-in-laws mortgage as she had to stop work while being treated for breast cancer. This was the best thing we did for her - it took lots of financial stress away and gave her secuirty in her house.

10 yrs on and she's still with us and we have a great relationship (we don't begrudge the money and never even mention it although she has written into her will that our loan is to repaid first before the rest of the estate is distributed amoungst the other beneficaries)


Good luck for Dad.

Pricivius

It seems to me that you are stuck in your property. You can't sell it, you can't rent it out and you can't walk away - at least, you could, but with serious implications for your future finances.

To me, it would make sense for one of you to move to be with dad. You will be able to live with him so hopefully come to some arrangement to keep living costs low (depending on his circs), whilst also starting a new job and being able to build a life for the family in the new location. Tighten your belts and save save save to get yourself out of the property issue and then they can come join you.

It would be lovely to have what you want NOW, but it just wouldn't make sense in the long run. I had to drop everything to move 200 miles to be with an ailing parent - job, flat, friends etc... It would have been lovely to have an option or to have had time to sort things out, but these are the things you do for your family. Good luck with everything.

ognum

OP sorry you are in this position but as you say you so seem to be stuck.

I guess your only choice would be too hand back your keys to your mortgage provider.

this will mean you will be unable to get another mortgage for a long while and due to bad debt you are unlikely to get rental property.

You could move in with your dad, do you have other siblings because sadly when/if your dad dies if he has a mortgage or the property needs to be split then you may become homeless.

Could one of you stay in your home and take in lodgers to overpay your mortgage.

Could your Dad lend you the money to get your house back into a positive state and then you sell

Sorry unless you can sell and pay off your mortgage I think you are stuck.