Help please

Blub

Hi I am new here and am wondering if anyone can answer a question for me.

My husband and I have a property on which we had a mortgage with NRAM and a secured loan loan with first plus.

Due to long term illness we fell behind with our payments and have entered into a dmp which seems to be going well. We tried to sort out the arrears, but I found that worrying about the money was making me I'll again and so we have put the house on the market.

Our house has gone up for sale for £190k, the estate agent thinks £185k is the likely sale price and the market is buoyant in our area. If we sell at this price my mortgage and it's arrears arrears will be cleared but there will be a shortfall of £10k on the secured loan. I know I would have to speak to first plus about this and negotiate it and hopefully they will agree to the sale (if they don't allow the sale it will have to go to voluntary repossession, and they wouldn't get a penny )
My question is this (I apologise if it is a really stupid question) obviously with the sale of a property come fees (solicitor and estate agents) how do these get paid? Will these be paid from the house sale monies before funds are released to NRAM and first plus, or do I have to find the money to cover these fees. If the case is the latter I have no idea what to do as I desperately need to sell my house, but I have no funds available to pay what would probably be a few thousand pounds to cover the selling fees.

I'm so confused I don't know what to do I can't go bankrupt as I would lose my job

Please any advice would be appreciated

Meatloaf1981

Fees are normally paid once the sale settles, however some solicitors will ask for a deposit up front, normally around £250 to cover initial fees, etc. Get them to quote you and use someone reliable that your friends can recommend rather than flicking through the Yellow Pages.

Blub

Meatloaf1981 wrote: »

Fees are normally paid once the sale settles, however some solicitors will ask for a deposit up front, normally around £250 to cover initial fees, etc.

Thanks for your response

Once the sale settles does this mean they take their fees and pay the estate agents before paying the mortgage, or would the secured loans be paid first and fees to be paid from any surplus , of which there won't be any, so therefore a lump sum I'm gonna have to find. If this is the case I don't know how I can sell the house

hettiecarro

Hi
You say your house is already up for sale. How much are the estate agents fees? i.e. what %.
Also have you appointed a solicitor yet?
They will certainly take their fees first. They couldn't really be expected to pay the mortgage and secured loan and leave no monies for themselves.
Can you give a few more details about your circumstances to see if we can suggest anything?
Have you somewhere lined up to live after the sale of the house?
Sorry for all the questions when you wanted answers but would like a few more details to know what you are dealing with.

Blub

hettiecarro wrote: »

Hi
You say your house is already up for sale. How much are the estate agents fees? i.e. what %.
Also have you appointed a solicitor yet?
They will certainly take their fees first. They couldn't really be expected to pay the mortgage and secured loan and leave no monies for themselves.
Can you give a few more details about your circumstances to see if we can suggest anything?
Have you somewhere lined up to live after the sale of the house?
Sorry for all the questions when you wanted answers but would like a few more details to know what you are dealing with.

Hi
The house is up for sale and the estate agents fees are 1.2% i believe (don't have the paperwork with me at the moment)
We haven't appointed a solicitor as it has only just gone on the market although our estate agent seems confident and is saying he already has a potential cash buyer in mind (she lives abroad but buys properties to let, she already has a few on our estate) so he is trying to contact her.
This is going to be the thing I look into on my next day off. Any ideas of what this could cost? I'm selling only.

We do have a place in mind to rent and we have first refusal on it if we want it as it is through a friend and they are in no rush to let it out.

Our situation is basically me , my husband and 2 kids aged 12 and 8. We got into the mess we are in when my husband was really ill and had to spend a long time in hospital about 6 years ago. at the time we had some small debts (small loan and couple of cards ) but were both earning very good incomes. When he was ill after a while his income stopped and We took out the first plus loan to try to sort ourselves out. This worked really well for us and it was all fine however a couple of years later I had problems at work with my manager and it caused me to have a breakdown. Eventually after tribunal the decision was my word against hers and in the end they moved me on same salary so I didn't have to deal with her again. I was happy with this, but I found it hard to continue with the job because of the stress levels and in the end I took a step down) this massively affected my wage and whilst I thought we could absorb this, obviously we couldn't. We have a dmp with pay plan for a small amount of unsecured debt. our main problems are the amounts we are paying out on secured debt £850 on mortgage and £300 on secured loan. After paying this out we only just meet our other monthly bills and have no funds left over.

Because of my job I cannot go bankrupt, and entering into an IVA but not help as our secured debt would not be included. I have been though a vigorous budget planner with pay plan so we manage, but the house is affecting my mental health. I only sleep 2-4 hours per night, am on anti depressants and diazepam which obviously is not good when I have 2 kids to look after. My OH tries his hardest but I struggle to relinquish the responsibility through habit.

We have just come to the point now where enough is enough, our love for the house has gone and my kids are grounded and are happy to move for the adventure. X

Poppops

If you sell at £185,000 your estate agents' fee will be £2,200 plus VAT ( if 1.2% is right) so budget around £2,600.

Think solicitors fees are around £500 plus VAT so budget £600. Of course this may be dependent on area. House prices are quite low where I live