Please help me :-(

Mummyto4

Anybody ? Xx

TheGardener

Hi - It is quiet on this board the weekend, don't worry someone will be along to continue your conversation.
Have you sought any advice yet? StepChange, National Debtline? the are free and very good - StepChange have a debt remedy tool online to be going on with - arm yourself with as much info as you can dig out of the sideboard and fill it in, it was the game changer for me and after living as you are for several years - seeing the advice 'Bankrupcy' on screen - although a shock - was in a weird way a big relief.

silvercar

Mummyto4 wrote: »

My only problem with attempting to sell is I may lose this other property I think value will be around £120000 I owe £110000 my arrears at a guess around £5000-£6000 very very minimum I can convince them into accepting is £1160 a month I just can't do it I'm constantly juggling everything all the time and have 4 small children to feed I just think even if I won the lottery 2morrow I just don't want this house anymore big statement I know but I've just grown to hate it and all the upset that surrounds it x

Sounds like there isn't any equity in the property. If you really can't afford the mortgage then I would contact the lender and ask if they do assisted sale. That way they take the lead on a sale and you can be rid of the property.

If that is not possible and you are desperate to be rid of it, then find a rental and go for a voluntary possession ie handing the keys back. But take professional advice first to make sure it is right for you.

Once you are in a rental and the property is sold, your lender will let you know the amount of negative equity. Then you can decide between negotiating a settlement or needing to consider bankruptcy. But that is down the line.

luvchocolate

Hi its a good plan to move into rented before your credit file shows missed payments etc, please remember you are liable for the council tax and building insurance on your property until the repossession takes place, in my case that was 10 months.
Maybe get a couple of valuations for a quick sale to have an idea what the shortfall is likely to be.
Contact one of the debt charities for advice stepchange were really good for me xx

77blondie

Mummyto4 wrote: »

Due to one thing after another I'm having to consider repossession or voluntary repossession if I do voluntary will I have to do bankruptcy too or can I arrange a payment plan for any shortfall or am I better just allowing them to repossess will it still have the shortfall to make up if the repossess etc I've found a property to rent etc and will be leaving this property in the next couple of weeks regardless of how I do it but would appreciate some advise etc x

Hi mummygo4. I have recently been in a similar situation. We went for the voluntary repossession and stopped making the mortgage payments. This will obv affect your credit file. Go ahead and move into rented. Write the bank a letter handing the keys back. Both mortgagees to sign. They will. It place affixed charge reliever on property (estate agent) until you have missed 3 mortgage payments. They will then issues a demand and 14 days
After a final demand for full balance. Ignore these and then they will put on market. My mortgage company where prepared to accepted interest only payments - mortgage bal £155,000 - £192. Our negative equity is going to be about £60k. I can't imagine they will bankrupt you if it's only £5-6k negative equity.

I assume you have tried negotiating with them and advised them of your finances??? Surely interest only to help you get back on your feet should be an option??

Once house is sold and you know what you owe an IVA may be best starting point.

Hope that helps and I haven't rambled too much. The bank will insure house once they take possession. You will still be responsible for rates.

National_Debtline

Hello there,

I understand from your posts that the potential shortfall from the property could be low, depending on what the bank ends up selling the property for. If you hand back the keys or allow the bank to take repossession action you will still be liable for the monthly mortgage payments until the house is sold and, potentially, the court costs. Therefore, your liability is going to be similar either way.

Your credit reference file will likely already be damaged due to missed payments so don't let that influence your decision. If you already have your rented accomodation lined up and this would put your mind at rest, then real issue is what options will you have to deal with the mortgage shortfall, and any other debts you may have, once the house is sold.

Completing a full personal budget sheet is very important to help you look at all of your options. We have an excellent one on our website www.nationaldebtline.org. There are likely to be lots of options available to you to help you resolve the debt depending on your overall circumstances.

Best Wishes,

Laura @natdebtline