advice to brother

princess295

my brother has asked me my opinion and advice and im torn i dont know what to think.

he has a two bedroom house, not in good state no water in kitchen has to use the bathroom to wash pots etc, damp in number of rooms.neighbours are a nightmare can never sleep as they noisey, they have rubbish all over the street. he works odd times as he works on 24/7 call out so the odd time he is home he cant sleep due to the noise. he bought the house for £70k but will never get that price if he sells the lady further down street has hers for sale for 2 years at £50k and it didnt sell, the area has gone right down hill since he moved. he is struggling to pay the morgage, he has had to lend money of me to pay the morgage on odd occasions. he is considering not paying the morgage so the house will get repossed and he can rent a flat.

he can rent a flat nearer his work which will save him alot of money as he often gets called to work 6/10 times a day going backwards and forwards costing alot in fuel, he will be able to get rent for slighlty cheaper than morgage so will save slightly. he will get away from neighbours so might be able to get some peace and sleep which is really affecting his pyshical and mental health.

i can see the benifits of him getting a flat but dont know if its the right then to purposely get house repossed but on other hand i think it will do him the world of good being away from his house, he would never be able to sell it though and wouldnt be able to afford estate agents fees.
i know it will likely affect his credit rating which is already rubbish as he has lots of debts, he works every hour he can and yet he still cant afford to live:(

dont know what to say to him for the best

holly_hobby

If the house is repossessed he will incur the lenders admin and legal fees associated with the possession process (which will generally commence after 3 mth arrears have been incurred, with no positive mediation or engagement from the mortgagor).

This will then be added to any shortfall the lender realises on sale - of which he may be pursued for upto 12 yrs (regardless of the adverse data falling off his credit record after 6 yrs, at which point some lenders also choose to cease continued pursuance )

Additionally, he must disclose if asked, in any future mortgage/financial application that he has previously been the subject of a repossession order - regardless of how long ago it occurred. How that would affect the application at the time, will depend on several factors.

As long as he is aware of this, then if he just wants to jump ship, at least he knows the consequences.

Hope this helps

Holly