Negative Equity, Reposession, renting and Bankruptcy

NoMoreExcuses

Morning all

Please can someone help before me and dh kill each other.

We were stiffed by our FA and now have an extortionate mortgage with an order to reposess if we do not pay every month on time. Our mortgage is £2900 pcm including arrears. We cannot obviously afford to live and have £70k of unsecured debts and £8k of secured debts.

We know we cannot live in the house anymore, but we have 3 children and a dog. We had to find a house that could fit us all in. We found one yesterday for £1600 pcm. Perfect. However, national debtline said the OR will say its too extravagent...I urge any of you to find a house localish thats big enough for that same price that will accept pets.

My dh also lost his job last week [eek] but has interviews for 4 jobs , 3 of which look great and he should start soon.

We have £10k from my inlaws and need to give this house an answer this morning. We just dont know what order to do everything in... We have opened an account with Co-Op, and reclaiming charges etc.

What is the best way to deal with our house, we are £20k into negative equity.

Do we put a deposit on this house now? Will they find out we are bankrupt when we file? Do we just hand our keys back? What order do we do things? My head is spinning and dh has to go for 3rd interview in 2 hours, and the letting agency want an answer... Please help!!!!!!!!!

NoMoreExcuses

Please help me. I feel really suicidal today. National debtline are useless.

Red1708

Hang in there, I'm sorry but I have no experience of housing issues but just wanted to say somebody will be along soon to help you.

Only thing I can comment on is about landlords & that it seems to depend on the individual OR as to whether they find out. My OR did contact my landlord but there are many here who's OR didnt, so that seems to be down to the individual OR.

The rent does seem quite steep, are you sure there is nowhere else in your area that you would be able to rent?

Richard_S

NoMoreExcuses wrote: »

Morning all

Please can someone help before me and dh kill each other.

We were stiffed by our FA and now have an extortionate mortgage with an order to reposess if we do not pay every month on time. Our mortgage is £2900 pcm including arrears. We cannot obviously afford to live and have £70k of unsecured debts and £8k of secured debts.

We know we cannot live in the house anymore, but we have 3 children and a dog. We had to find a house that could fit us all in. We found one yesterday for £1600 pcm. Perfect. However, national debtline said the OR will say its too extravagent...I urge any of you to find a house localish thats big enough for that same price that will accept pets.

My dh also lost his job last week [eek] but has interviews for 4 jobs , 3 of which look great and he should start soon.

We have £10k from my inlaws and need to give this house an answer this morning. We just dont know what order to do everything in... We have opened an account with Co-Op, and reclaiming charges etc.

What is the best way to deal with our house, we are £20k into negative equity.

Do we put a deposit on this house now? Will they find out we are bankrupt when we file? Do we just hand our keys back? What order do we do things? My head is spinning and dh has to go for 3rd interview in 2 hours, and the letting agency want an answer... Please help!!!!!!!!!

NME,

I've only got time for a quick post. I think the NDL is probably correct in what they say about the O.R and I don't think it's necessarily in your best interests to take the property at this point. Has the Repossession Order actually gone to Court? If not, you've got months for the Bank / Building Society to be able to evict you. We didn't pay our mortgage for over a year and still got to keep the house.

If your inlaws are prepared to lend you £10k for housing then don't pay it into any of your bank accounts if you're considering bankruptcy.

Ring the letting agency and tell them that you can't make a decision until after the Bank Holiday. That will give you more breathing space to make a considered decision. I'm not saying "don't go for the house" but if you do then you may well find yourself having to look for another one if you declare bky.

Richard

Richard_S

NME,

I've just sent you a Private Message

Richard

lovinit

sorry unable to help with the order to do things but just wanted to say i simpathise, its extremly difficult finding the right property for your family as no matter what you want the best for them. it does sound a lot pm but dont know where you are or the size of the property? you are in the best position to know that and i personally would do what you feel is.i go for what i want and if it works out its ment to be if it doesnt then it isnt not much use but works for me. can you realistically manage that amount of money each month? is there anyone who could mind your dog for a while to give you more options in the sort term? all the best am sure someone will be along sortly with some good advice

Conor_3

Just a question: Is this the South East? £2900 a month mortgage and £1600 a month rent? Are these figures real? No wonder people are struggling.


Ever thought of moving? My brother moved back up here from Letchworth. He works for an agency that supplies temps to council Housing Benefit departments. He earns more up here as a bog standard claim assesor than he did working in Brent Council, even with the London Weighting Allowance, as a manager of the equivalent department. My other brother moved from London up to Sunderland. He's far better off.

Up here, Driffield - E.Yorks, a 4 bed house with garage in a nice area is £550 pcm. My in-laws have just rented a very nice 3 bed town house for £460 pcm. You can get 3 bed ones for under £400 and we don't have any !!!!! areas in my town. I was trying to find a house in my area that's the equivalent rent and the best I could find was £1200 pcm which gets you:

A most attractive Grade II Georgian house standing in mature landscaped gardens. The spacious accommodation provides a wealth of character and charm and includes: reception hall, drawing room, sitting room, snooker room with table, study, kitchen, utility, conservatory, 5 principle bedrooms including master suite, two attic rooms. Double and single garage, outbuilding, greenhouse and potting shed. Extensive private gardens including: lawns, large pond, terraces and wild flower garden.


Wages may be less "Oop Norf" but they're not 5 times less however more importantly, the cost of housing is which means that after you've paid your rent/mortgage, you've got far more disposible income. 2 minutes from my house and you're surrounded by countryside and rush hour simply doesn't exist. In fact it's busier on a weekend during the summer ,as we're 10 miles from the nearest coastal resort, than during the week. Jobs wise, how many would you like? There's not exactly a shortage around here. 30 miles travel gets you to York or Hull and as I said, it's not that busy.

And contrary to common misconceptions, we have electricity and motor vehicles too.

NoMoreExcuses

Thanks for all your replies. We have told them we will be there at 3pm (estate agents).

We are in prime commuter area, and I feel like I should apologise for that, but we worked so hard for what we have (have not?). we had our own company 2 years ago that we owed £93k by a company that liquidated. We got a VERY dodgy mortgage deal, and have been to court 3 times. They now have a suspended possession order. I am loathe to pay another £3k of mortgage when it could pay 2 months rent.

We have thought of moving but both kids are settled in their schools and doing really well despite our messups. I have a Post Natal Depression Consultant here and a psychiatric nurse that I see on a regular basis. My Mum lives fairly close by and helps me on the very low days (she is on her way over).

I have to speak to cccs at 2pm today.

I cannot believe the useless information that NDL and The Insolvency agency gave me....suggested we stay and continue to pay the mortgage??? I got really upset.

Husband at interview and baby wailing. i feel so low. i just cant take anymore. Why isnt there anyone that can really help? its so hard to explain stuff over the phone.

Richard_S

NME,

I've got more to go on now, and I'll have more time over the weekend to post. We've been where you are now in very similar circumstances and you can turn things around; keep logging on and ask questions or just a "shoulder to cry on" there's more than enough support to go around.

Richard

Rikki

I don't have any advice but I just wanted to give you a (((((BIG HUG))))).

Richard_S

Go and view the house, and I take your point about paying any more of the mortgage if you've got to the suspended repossesion stage, I would still try and delay a decision on the rented property until after the bank holiday if you can at all.

If I was in your position and you absolutely had to make a decision about the rented property and you're sure you can meet the rent then I'd probably be inclined to go for it.