Sell to pay off debt and rent?

freeisgood

Can you sell, and then buy something outright that is tiny, like a studio flat (if it is just you)?

barbiedoll

Selling your house to pay off your (not too large) debts would be a big mistake.

If you are having trouble servicing your non-priority debts (i.e. credit cards), then do contact a debt management charity. They will help you to negotiate with your creditors to enable you to pay off the debts over a longer period of time, with smaller repayments. The CC companies cannot expect you to pay debts if you do not have enough money to pay for your essential living expenses, your mortgage is an essential expense, the CC companies will just have to wait for their money.

The DFW board will have lots of help and advice for you. It sounds as though you are paying high interest rate charges on your cards, you may be able to get these rates reduced. If you have missed payments, your credit rating will already be ruined so you have nothing to lose by going onto a Debt Management Plan or similar, at least you will be able to keep your property.

Please do not be tempted by any company which promises to deliver "write-offs" on your debts, or those who promise to get interest and fees stopped, they will charge a monthly fee for things that you can do yourself for free.

Don't despair, there is a way out of this, I know, I'm doing it myself!

System

BigAunty wrote: »

CHRISSYG 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.

Anyone can join a housing list whether or not you get anywhere depends on the banding.
Due to my dd's needs we eventually moved into an adapted bungalow 18 months after we went on the list. It then took a further 6 months to sell our house.
It wasn't easy paying rent + mortgage and 2 lots of council tax but we managed [god knows how].
Renting for us is 100% better and when my dd is 18 next year she will be added to the tenancy.

BigAunty

CHRISSYG wrote: »

BigAunty wrote: »

Anyone can join a housing list whether or not you get anywhere depends on the banding.

Wrong.

Since the Localism Act that was introduced a couple of years ago, in England, as I noted in my previous post, the social housing landlords can draw up their own allocation policies, including excluding people from joining the list.

They have no discretion in how they process applications from homeless people, there are core rules that all social housing landlords must follow.

But for general lists, they have some leeway and since then many social housing landlords have introduced barriers to people that prevent general applicants from having their forms accepted.

These include stipulations around local connection, income, capital, home ownership and employment and it changes on a landlord by landlord basis.

There was a thread on here recently from someone complaining how one local council will not accept general applicants to their list if they are only overcrowded by a single bedroom - they need to be short of 2 bedrooms before the housing department will even consider letting them on the list.

I understand one London council won't accept unemployed applicants (haven't checked if its true though). Other councils have reintroduced the 'sons and daughters' policies to prioritise the adult children of their existing tenants.

So in England, the entitlement for any person over the age of 18 with a right to reside in the UK to put their names down on the waiting list for social housing has effectively ended - some landlords have very severe restrictions just to reach the list.

BigAunty

Kynthia wrote: »

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

Must be a software bug on the forum - it's happening to others on this thread.

System

BigAunty wrote: »

CHRISSYG wrote: »

Wrong.

Since the Localism Act that was introduced a couple of years ago, in England, as I noted in my previous post, the social housing landlords can draw up their own allocation policies, including excluding people from joining the list.

They have no discretion in how they process applications from homeless people, there are core rules that all social housing landlords must follow.

But for general lists, they have some leeway and since then many social housing landlords have introduced barriers to people that prevent general applicants from having their forms accepted.

These include stipulations around local connection, income, capital, home ownership and employment and it changes on a landlord by landlord basis.

There was a thread on here recently from someone complaining how one local council will not accept general applicants to their list if they are only overcrowded by a single bedroom - they need to be short of 2 bedrooms before the housing department will even consider letting them on the list.

I understand one London council won't accept unemployed applicants (haven't checked if its true though). Other councils have reintroduced the 'sons and daughters' policies to prioritise the adult children of their existing tenants.

So in England, the entitlement for any person over the age of 18 with a right to reside in the UK to put their names down on the waiting list for social housing has effectively ended - some landlords have very severe restrictions just to reach the list.

I can only speak for my area- that's not the case here.

I was initially advised to put my dd's name on the housing list when she was 16 because although she wouldn't be ready to move into a place by the time she was ready all the tie she had been on the list would put her way up the list. As it happens events overtook us and we went onto the general list and I then requested an assessment.
She was assessed as a medical priority and the rest is history.

JencParker

I completely agree with Barbiedoll - I would never sell a house to service debts unless it had enough equity to buy a new home outright and pay of the debts too and I've been in the same situation you find yourself in - there is a way out, but I would have been far worse if I'd sold my house.

You have a small mortgage and renting is likely to be more expensive anyway. I would be negotiating with the CC companies as has been said and get your son to contribute what he can too.