Raising a 6 month deposit.....

woodformoretrees

After a very unproductive chat with my local council this morning about housing I am still stuck on the issues of HOW DO I RAISE SIX MONTHS WORTH OF DEPOSIT BEFORE OUR HOUSE IS SOLD!!

This is indeed the most frustrating area of the last year.

** Once our property is sold we will have (from my OHs share) the vast deposit that will soften a landlord's heart enough to put up with us.

** IP says as they have to guarantee vacant possession of house to the buyer that they MAY need us to move out earlier than moving day. (although even if they don't we won't have that money to secure a rental until the day we move)


** Mortgage company won't put our mortgage on to 'interest only' for a period of time in order that we may accrue a deposit. They have said we could plead poverty and come to a payment arrangement (This strikes me as dishonest - I would rather come to this arrangement by not pleading poverty)

** Our household income is too high to be considered the the housing list. Although they would help us find a B&B in a local seaside town. (and not the sort you'd choose to stay at)


The lady at the mortgage company kept telling me that they take action after there have been no payments for 6 months. I wasn't sure if she was being gloriously lovely and hinting at a possible solution though. 6 months seems like a very long time.

Am I missing a completely obvious solution to this situation?
(Oh, and I don't have anyone that could act as guarantor, unfortunately, so we do need to go down the deposit route)

tigerfeet2006

Can I ask why you didn't sort this before BR?

Stop making the mortgage payments and save the money for your deposit.

tiggerbodhi

Hi,
Yes think the person at the mortgage company was hinting, stop paying the mortgage, BS them and string them along as much as you can and hopefully you will be able to stay in the house until they start repossession proceedings, I found it very easy to do this with Santander.


The caveat for any repossession, forced or voluntary is do not sign anything, you do not need to and mortgage companies can be a bit sneaky to get a deed of assignment signed.


The issue I think I read from your post that you have is that any accrued unpaid interest and charges will be taken from your OH's share of the equity, therefore reducing what they get in the long run.

woodformoretrees

tigerfeet2006 wrote: »

Can I ask why you didn't sort this before BR?

Stop making the mortgage payments and save the money for your deposit.

Because we're not in negative equity. If we had stopped making payments over a year ago we'd have been made homeless six months earlier and husband would risk his share being eaten up by a very cheap mortgage company sale. (Although this is only our logic, and probably completely wrong)

Also....I didn't plan my bankruptcy. I was made bankrupt, so it wasn't the most proactive of times.

Edited to ask: If we stop making payments now, but don't get a buyer for six months.....can we then pay those payments over and stop the bank repossessing?

woodformoretrees

tiggerbodhi wrote: »

The issue I think I read from your post that you have is that any accrued unpaid interest and charges will be taken from your OH's share of the equity, therefore reducing what they get in the long run.

Is this the case? Would he pay all the extra charges from his share?

ty.

The issue is more I'd like to pay the interest each month - but the mortgage company are kind of pushing us to default, because they can't make us interest only 'in the circumstances'.

tiggerbodhi

Believe he would pay them from his share assuming it is a joint Mortgage, mortgage companies are very good at covering all bases.


If your house hasn't sold yet is there a chance it will not anytime soon? if this is the case write all the numbers down, it might be best to cut your losses and stop paying eating into your partners share of the equity...

woodformoretrees

I cannot see how letting it be repossessed can in any way be a good financial decision, at the moment OHs equity is around 50k. If we let the mortgage company sell it then he will lose all that - they'll just sell it to cover their own costs.

I just can't see a clear path to selling and moving to rented and getting a deposit together - every time I look at the options I just see a massive fuzz of a gazillion ideas/dead ends.

It's a ridiculous situation where we have a deposit tied into the house and until the house is sold we can't access the deposit, if we stop paying the mortgage for long enough to save the deposit we could end up completely losing all equity. I'm presuming that it's my stupidity that's preventing me seeing a way to untie the situation. It makes no logical sense for it to all be as complicated and impossible as it's seeming to us at the moment.

Gah.

tiggerbodhi

its a real catch 22 and you have my sympathy, guess there is no way your partner can borrow the deposit?


Thinking outside the box is it possible to do a "cards on the table" with any new landlord, explain the situation, involve your solicitor to take a portion of your partners equity on sale to go straight to your new landlord, personally wouldn't bother going via an agent, try to find a property being let directly by a private landlord.


Have you anything high value you can sell to raise deposit then replace after the property is sold?


How about a "holiday let" for three months on moving out, might be tight but a mobile home or similar could be liveable for three months.

woodformoretrees

Thank you - yes, we were wondering about a mobile home or similar.....although I would possibly never get the children to move out of it once we were there!
We were also talking today about looking at the possibility of trying to rent initially through the same agents as were selling our home - who could at least then communicate with their clients (the landlord) as to our position and possibly this may act as some form of advocacy or reassurance.
I think, because we're both new to rental we'll probably go down agent route for the first one - then when we're a little more rental savvy we'll look to cut out the middle man and rent privately. I just think that in our initial desperation and ignorance we could get ourselves in to a pickle.
I'm sure it will all become much simpler nearer the time......it has to right?! *laughs hysterically*

tiggerbodhi

"I'm sure it will all become much simpler nearer the time......it has to right?! *laughs hysterically* "


Yes it does, things fall into place, sometimes you have to jump of the cliff and find out if you can fly on the way down....