Living month to month because of huge debt: sell house to get back to 0?

LannieDuck

I only read this quickly earlier because I was at work, but I think it's clear from your subsequent posts that your parents are definitely selling the house!

Returning briefly to the idea of selling things - if your parents are going to move in with you for a while, they might welcome the opportunity to sort through their stuff.

adebt

LannieDuck wrote: »

I only read this quickly earlier because I was at work, but I think it's clear from your subsequent posts that your parents are definitely selling the house!

Seems that way!

LannieDuck wrote: »

Returning briefly to the idea of selling things - if your parents are going to move in with you for a while, they might welcome the opportunity to sort through their stuff.

Yes, that is an excellent idea. My only concern is that I read here that sometimes a house can be harder to sell if it's not being lived in when people have viewings. I was thinking if we leave in furniture and stuff but get rid of all the other personal possessions (either storage (or sold as you suggest, if they have value)) that might suffice.

LannieDuck

adebt wrote: »

Yes, that is an excellent idea. My only concern is that I read here that sometimes a house can be harder to sell if it's not being lived in when people have viewings. I was thinking if we leave in furniture and stuff but get rid of all the other personal possessions (either storage (or sold as you suggest, if they have value)) that might suffice.

I only know about the best way to sell houses from TV progs (!), but they suggest that reducing clutter helps (although I agree, you wouldn't want to clear the house completely). I guess it depends how much your parents have in the house to begin with...

jayII

LannieDuck wrote: »

I only know about the best way to sell houses from TV progs (!), but they suggest that reducing clutter helps (although I agree, you wouldn't want to clear the house completely). I guess it depends how much your parents have in the house to begin with...

I think the amount of furniture they leave in the house will have an impact on council tax liability while the house is empty.

I can't remember the exact details, but in some circumstances the council will waive or reduce council tax for a few months. They also need to speak to their insurers, some are more accepting of empty houses than others are.

techspec

darren_clarke wrote: »

some times it is best to go bankrupt and start again, there is a lot less stress, plus, how long will it take to sell the house, if one of them got ill could they survive, as you say they are spending 90%-100% of there wages on debt,

my advice would be to go bankrupt and start again, they might not even have to sell the house, put if they go bankrupt then the receivers will make sure they pay there mortgage and have money to live on,

I've always belived you can't go bankrupt and keep equity in the house.

smancslad

Can your parents not sell and buy something cheaper using the equity? The reduced mortgage payments would give them some wiggle room and it means they don't have to rent.

leicestersq

Hi,

I just read through this thread and I realised that there was one thing that was missing for the readers. What we dont know is the interest rates on all the different debts that your parents are paying. That could have a large impact on any advice that is given.

For example, if there was a credit card debt at 30% of say 50k, and you had 50k of equity in the home, I would say sell the home because it frees up so much cash on the amount you pay each month. However, if all the interest rates are very low, then it changes the decision.

Can you list each of the debts, the amount owing, the amount being paid each month and the APR?