Sell to pay off debt and rent?

BigAunty

Post details of your debts on the debt free wanabee board and the posters there will be able to advise you the best way to tackle them, the expert debt charities that can help, getting the debt repayments down to an affordable level, etc. No need to sell the house or secure the debt to it.

[Deleted User]

I would also recommend looking at your monthly budget with a microscope before selling your house to go into rental and pay off debts.

Also suggest (if this is possible) getting your son to contribute, even a small amount, to teach him some responsibility otherwise you run a risk of whatever happened happening again. Tell him you could lose your house., ie whatever happened has huge repercussions for you. If he doesn't, never ever help him again. You're doing him a disservice.

Its a silly thing but my 18 year old lost his travel card at a time when I had no spare money at all. I came down on him pretty hard (was quite 'mean' to him) but you know what, he sorted it all out himself at no cost to me (it would have cost me nearly £100 to get a replacement and pay for fares while awaiting the replacement). If I had been a little more flush, I wouldn't have created and he wouldn't have become more responsible.

Pixie5740

jjlandlord wrote: »

You're paying the debt for longer if you want too.
Since the interest rate is much lower, for the same monthly payments you will pay it off sooner and more cheaply.

To me, that certainly seems a cheaper option than moving out and renting.

It doesn't alter the fact that it would involve turning unsecured debt into secured debt.

jjlandlord wrote: »

Sorry to hear that. That'd would have been ideal, IMHO.

Selling and renting may then be the only way to clean your slate.

There are other options to explore before selling and renting. At the moment the OP estimates it will take 5 years to clear the CC debt. It's possible the folk over on the DFW board have suggestions on how to do it faster.

Pixie5740

lesleyp1989 wrote: »

That was with my current lender, my bank, I am not able to get any additional lending or transfer right now as credit score is only 475, I'll maybe try an independant mortgage advisor, thanks

Where are you getting that credit score from? Are you paying Experian, Equifax or Noddle, none of whom lend money, for an arbitrary credit score? If so cancel your subscription. That will give you some extra money to throw at the CC debt.

WobblyDog

I would avoid selling unless absolutely necessary. I would take fairly drastic money-saving steps to increase my income and cut costs before resorting to selling my house.

For better or worse, continuously rising house prices are widely seen as a good thing in this country, so selling with the intention of buying again later would probably be a financial mistake.

System

Kynthia wrote: »

Selling and renting is a last resort as you'll lose your asset, a secure roof over your head, incur thousands in additional costs, and possibly be unable to buy again.


It cost us 2k to sell our house which was taken from the sale of the house, we moved into social housing and its the best thing we have ever done. While I appreciate SH is difficult to get , In the last 14 months I've had full new central heating put in ,2 leaks sorted and I'm currently waiting to have a path repaired.
It would have cost me thousands if I owned the house !

OP if you have enough equity to take care of the fees then your plan is an option.

bouicca21

I've been renting. It is ghastly. Huge sums of money going down the drain, you are at the mercy of the landlord who may or may not do repairs, you can't live the way you want to because something as simple as puttng a picture hook up makes you worry about losing the deposit. Which is a point - have you got enough spare cash for a deposit and for the credit check and admin fees that the LL or LA will demand?

The increase in house prices is rippling out from London, so you can't be sure that in 6 months time you will be able to afford anything. You will rack up legal fees.

I second BigAunty - get over to the debt free wannabe board - and Deanna - investigate your budget with a microscope. How much do you spend a month and on what? Can you not transfer some of the CC debt to an interest free card and then overpay like mad?

BigAunty

CHRISSYG wrote: »

Kynthia wrote: »

It cost us 2k to sell our house which was taken from the sale of the house, we moved into social housing and its the best thing we have ever done. While I appreciate SH is difficult to get , In the last 14 months I've had full new central heating put in ,2 leaks sorted and I'm currently waiting to have a path repaired.
It would have cost me thousands if I owned the house !

.

As you recognise, getting social housing is v. difficult. I think it is probably harder for those in employment, with capital, that were previously home-owners.

There is a lady on the bankruptcy board who recently posted that she was given high priority for social housing (due to being served notice by her landlord in rented accommodation).

She's just been informed by the largest local housing association that she earns £18 too much per year to qualify to be a tenant with them, wiping out access to most of the properties advertised on the choice based housing system despite her high priority status, as they own most of the local stock.

On the benefits board, is a disabled person in shared ownership accommodation at risk of debt and unlikely to return to employment to pay off the mortgage who wanted to give up their property through voluntary repossession.

They were advised by CAB that the local council would deem themselves to be intentionally homeless and decline to house them. The emergency homeless route is barred to therefore barred to her.

They contacted local social housing landlords, including those for the disabled, and was informed that as a homeowner, they would not let them join their general waiting lists as they bar all properties owners from applying.

In England anyway, there is a degree of discretion by social housing landlords as to who they permit to join the general waiting list/choice based bidding process (including rules around income/capital). In many areas, the majority of vacant properties are given to those who are homeless and in priority need and selling a property on a voluntary basis means they can't be classed as homeless.

[Deleted User]

Even I, as a person with two children, one with special needs have been told by my housing dept that I will be considered as priority need because its possible my LL is going to sell the house I rent off him.., but we will go into B%B for eight weeks, then into 'temporary housing' which will be a one bed flat. Could be there for two years.

So if you are single.., you could have problems with social housing. And credit checks to pass for private rental (or maybe you could pay six months in advance) - all to risk being told by the LL that they want the house back every six months to a year (depending on how long the tenancy agreement is for). When you are ready to buy (will take a lot longer than six months to get your credit rating up again), house prices will likely have risen so you'll be able to buy less than you could now.

Far far easier to look at your budget. And get your son to contribute if you can.

Kynthia

BigAunty wrote: »

As you recognise, getting social housing is v. difficult. I think it is probably harder for those in employment, with capital, that were previously home-owners.

There is a lady on the bankruptcy board who recently posted that she was given high priority for social housing (due to being served notice by her landlord in rented accommodation).

She's just been informed by the largest local housing association that she earns £18 too much per year to qualify to be a tenant with them, wiping out access to most of the properties advertised on the choice based housing system despite her high priority status, as they own most of the local stock.

On the benefits board, is a disabled person in shared ownership accommodation at risk of debt and unlikely to return to employment to pay off the mortgage who wanted to give up their property through voluntary repossession.

They were advised by CAB that the local council would deem themselves to be intentionally homeless and decline to house them. The emergency homeless route is barred to therefore barred to her.

They contacted local social housing landlords, including those for the disabled, and was informed that as a homeowner, they would not let them join their general waiting lists as they bar all properties owners from applying.

In England anyway, there is a degree of discretion by social housing landlords as to who they permit to join the general waiting list/choice based bidding process (including rules around income/capital). In many areas, the majority of vacant properties are given to those who are homeless and in priority need and selling a property on a voluntary basis means they can't be classed as homeless.

Hi BigAunty. I totally agree with your post, however you've somehow managed to quote someone else but with my name at the top.