living in 1 bed flat with 14 month old baby possible mortgage rescue? any experience?

needs_a_miracle

Hi Guys this is my first post and I am really after some reassurance or advice to stop me feeling stressed up to my eyeballs
Here's my story in brief;
Live in a 1 bed flat with my 14 month old, havent returned to work after maternity leave, have lived here for 5 years have a part mortgage on a 25% share & rent the rest. Tried to sell but unfortunatly the valuations are same to or roundabouts my outstanding mortgage & do not have a spare grand or 2 for all the fees solicitors, estate agent, leesehold etc

The housing association will not buy back my share and i read technically as it's is 1 bedroom we are classed as overcrowded but i literally cant afford to sell, i have no savings.

Trying to be responsible to keep up with mortgage payments and rent and a big loan i have had to borrow and go without the neccessaties in life, my child never goes without but i am living so basic it's been a miserable year with money worries and stress.

Went CAB this week who advised they could help with loan by writing to my bank and offering a lower payment etc, they said to me if i stop borrowing money then obviously i wont afford mortgage payments if that happens i will get a default notice possible court action but mortgage rescue would then be able to help by doing a rent back scheme so then i would be free to move on with no ties as its just rented and i could finally moved into a much needed 2 bedroom house.

I have been to pride (not too proud to go without or borrow but too proud to miss certain payments of mine) with the budget planner cab have done with me it does show i have more outgoing than incomings as i am just on income support and housing ben / tax credits etc and it has really hit home.

Any one been in a situation where you literally cant afford to sell but need to move? how my future is looking over the next few weeks is looking to get my loan payments very much reduced if possible and then obviously stop borrowing which will mean defaulting on my mortgage and so on. I have realised i have lost alot of money on this property but right now i am scared confused and niave & wish i could just leave the keys and walk away with my baby of course , if i default on payments to mortgage is mortgage rescue a long drawn out affair would it be speeded up due to being overcrowded. i dont know what to do anymore feel like i have kept up a front to long and nows the time it is all going to crumble i just want this black cloud to dissapear. I was hoping to have won lotto by now but no chance!!:o Thanks in advance to any replies

barrowc

I think your post will probably get the most answers in the Debt-Free Wannabe (DFW) forum which is at http://forums.moneysavingexpert.com/forumdisplay.php?f=76 You might want to post it again over there and read the DFW Newbies Guide at https://forums.moneysavingexpert.com/discussion/562271

Good luck

flexrider

how does your share sale work

can you include a BTL or have a right to who lives there if you could move out form what you have stated so far if the housing more share then you you technically are stuck (sorry) and i agree with above u need to move this over at the other part of the website you get more replies

happycamel_2

I agree with posting on the DFW board. If you post an SOA (list of income and outgoings) people are very helpful.

Is it impossible for you to return to work or would you be less well off doing so? Childminders work out a lot cheaper than nurseries. Are you receiving maintenance from the child's father?

You won't get council help if you make yourself intentionally homeless but if you can't pay the mortgage and are in negative equity anyway then eventually it might make sense to let them go down the repossession route, which will take ages.

I agree that a DMP for unsecured debts while meeting your secured debt obligations and also looking for ways to raise your income would be the best combination. Could you get consent to let and move in with friends or relatives?