Buying family members house before repossession. Help!

harrys_dad

On a separate note, if you earn 50k a year why are you on an interest only mortgage? What plans do you have to pay off your own mortgage, let alone another one? (or is that what the inheritance is for?).

BigAunty

On your salary, I'm shocked that you are on an interest only mortgage and aren't overpaying your mortgage to pay it off early. That's v. bad financial planning. You should address this lack first or you might end up as one of the many posts we see from people reaching the end of their lending term having paid off virtually nothing of the capital.

Why is your relative in such high mortgage arrears? Do they have other debts? Are they seeking professional debt management advice from reputable debt charities?

On the topic of buying your relative's property and letting him stay there, it is fraught with problems.

On this housing forum we see 'pity purchases' go badly wrong with the new owner having to sadly consider evicting their family tenant because the attitude/behaviour that led to the debts in the first place continue and jeapordise them financially.



For example, they agree for the ex-owner to pay rent but they don't even if they have means or can't get housing benefit for it under deprivation of capital/contrived tenancy rules if they don't have means. I have come across one instance where someone bought their parents property and who faced bankrupty and repossession of their own place because their parents reneged on paying them rent and refused to sell and move to a smaller place. Their daughter couldn't afford to buy shoes and her mother just laughed at her and said 'why don't you move into a smaller place yourself'.

People who can't afford to buy properties have the valid option to sell and downsize or move into rented accommodation.

Get your relative to contact Shelter asap. They are a housing advice charity that provide expert advice to distressed homeowners facing arrears and repossession.

Dean_j_2

Thanks for all the replies

I've spoken about how my parents got into such trouble yesterday. It all started way back in 2008, when they tried to make a go of a new life in Spain. The property was let out through an agency and rented in Spain to get on their feet so to speak.

Pretty much the week after they moved, the credit crisis took hold, and money was very scarce in Spain for tradesmen (painter and decorator). In the meantime, over here, money was not paid by my parents tenants, which led to the arrears somehow. The agency went under and they never did get the tenants deposit to rectify all the damage caused to the house. Driveway smothered in oil, carpets needing replacing they were so bad etc.

Being a painter and decorator, money seems to be very hard to come by in the winter, and the sideline (bouncy castle business) is very seasonal, so it does get difficult. They do make ends meet, but barely, and now it's come to a head. The arrears are 7k I now know, so easier to eradicate.

I'm only on an interest only mortgage as, when we bought our property in 07, me and the missus were not on anywhere near what I earn on my own now, so thought we'd see how we coped, hoped to get a bit of equity out of the place, and move on after a few years.

In 08, the credit crunch happened and the property lost all the equity it built up. In 09, my missus fell pregnant, so we eventually lost her wage. We pay peanuts at the moment, but I will overpay, or move the mortgage to a repayment once I save the means to move, whether that is renting or acquiring another mortgage.

Cheers