Last Straw for Parents - advice pls

MyMoneyTime

Basically my parents have reached the end of the line with regard to blagging their debts.

Horrific situation now is that their total debts are £80,000 (2 years left on mortgage, credit cards and loans)

They need £800 more a month to live on - impossible to achieve and have now used all their savings and overdraft limit putting off the inevitable.

My Dad now wants to use a property company that buys your house and you can therefore pay off your debts and then you rent it back from them so you can live in your own house. Once they die the house obviously belongs to the property company. He hasn't booked an appointment yet and I worry that the purchase price will be low and the rent high - my Dad is 63 so once he retires where is the rent coming from - he says he will work until he is 70 but what if he can't through illness or worse, death and leaves my Mum homeless.

I can see why he wants to do it but I am clutching at straws and would welcome any advice before he signs on the dotted line. I have also told him he must ring CCC just to find out if there is anything else he can do.

Credit Card debts are in Mums name by the way (£50k) but she owns the house too.

Bankruptcy is a solution I guess but once there house has gone where do they live?

Some basic facts would be a great help.

Thanks if you are still reading!

AlanD_3

Still reading. I'm afraid I'm not an expert on property matters but someone will be along soon who can advise. Good luck!

FRUGAL_4

Tell your father not to phone the property company until you can get independant advice. Phone the CCCS and CAB in the morning. It is quiet on here tonight but I am sure you will get plenty of help tomorrow (I bet they are watching the football and having a lemonade or something):rolleyes:

Sorry, I'm not much use, but I didn't want you thinking no-one was answering your query.

I'm sending you a :grouphug: in these difficult times.

FRUGAL

Richard_S

Hi MyMoneyTime,

Your parents' first port of call should be one of the debt charities, CCCS, CAB, National Debt Line etc, they are free to use, their advisors are professionally trained and their advice is impartial and based only on what is in their best interests. There may well be other options they can suggest but if they advise bankruptcy then post again here and you'll get all the help and support you need.

I do have some experience with property but it complicates things even more given their age and the fact that the mortgage is almost paid off. Are any of the debts secured on the house? Would your parents consider selling and moving to a smaller house? If they sold and realised some of the equity they may be able to offer their creditors so many pence in the £1 as full and final settlement but that's a hard slog.

CCCS will conduct a telephone interview which some people find more comfortable than a face to face interview. Please keep us informed as to how things are going.

Best regards

Richard

kittynortheast

Hello
I'm no expert but I've been reading these pages for ages, I agree with the above seek free advice from the debt charities first before making decisions they seem to be very good and they don't have financial motives behind their advice. I don't know anything about these property companies but what screams out to me when I see the adverts is that you probably won't get anywhere near what their house is worth and would approach them with caution as once they make the phone call I would imagine they won't let go without a fight! Get as much impartial information first then they can make the right decision for them.