Selling because you can't pay the mortgage but no where to live

40yearoldgraduate

I'm not sure if I am posting this in the right place but if not hopefully someone can guide me to a better place.

Following our relationship split my ex is having to sell his house as he simply can't afford to pay the mortgage, in the last few years he has lost his job and has only been able to get agency work with very up and down hours.

During the last few years he has incurred mortgage arrears and been to court to stop eviction, made arrangements to pay but because his work situation didn't improve that became a problem and following another threat of eviction and no way to catch up he put the house on the market (there is about £20k of equity by the time selling fees, mortgage and debts are paid but there's obviously no hope of down sizing as no one will give him a mortgage now he doesn't have a regular job and a credit record that is shot to pieces)

Basically it was a case of sell the property or have it repossessed.

He has now sold the house and is weeks away from needing to move out with new his GF & toddler but he's been told to rent privately he needs to pay 6 months up front (which he wont have until the house completes) and the local council have told him they can't help until he the house is completed and he no longer has somewhere to live - at which point it will be emergency accommodation. Neither have family to help or stay with.

Has anyone been in this situation? Is there any help I can direct him too?

All help is gratefully received. He is is a very bad way over this as you can imagine. He is a stupidly proud person and I think he feels a lot of shame amongst a whole host of other emotions right now.

xylophone

Try Shelter?

pmlindyloo

This is just a matter of timing. He will have the money to pay 6 months up front as soon as the sale is completed.

What he needs to try and do is wait until he has exchanged and ask for two weeks between exchange and completion. During the two weeks he needs to find somewhere to rent. He shouldn't be doing this until he exchanges any way.

The money from the sale of the house should come through on the day of completion. This means that he should have the funds to pay his rent up front at this time. Usually rent in advance isn't taken until the day you move in.

Your brother needs to find out the exact timing from the letting agent.

If funds are needed sooner than this then after exchange the bank may be prepared to give a short term overdraft to cover it. They would probably need a letter from his solicitor to confirm the amount that will be transferred to the bank and when.

I hope this works.

The only other thing I can think of is offering a guarantor rather than the rent up front. Is that possible?

kidmugsy

pmlindyloo wrote: »

During the two weeks he needs to find somewhere to rent.

Can he find a holiday let for a fortnight? Find a bargain hotel?

Rockporkchop

Can't he use the 10% of the sale price he receives at exchange of contracts to put down as deposit on a rental?

stator

Definitely give Shelter a ring, they are the experts. But it does sound like he'll need to move into a B&B or Caravan rental or something similar. Put his posessions into storage if he can afford that.

silvercar

Rockporkchop wrote: »

Can't he use the 10% of the sale price he receives at exchange of contracts to put down as deposit on a rental?

No solicitor would allow this.

Rockporkchop

silvercar wrote: »

No solicitor would allow this.

Of course they allow it - it's the seller's money. They normally hold on to it if you are buying a new property but if you are not buying somewhere else they can deduct their fees and pass it on.

silvercar

Rockporkchop wrote: »

Of course they allow it - it's the seller's money. They normally hold on to it if you are buying a new property but if you are not buying somewhere else they can deduct their fees and pass it on.

Our seller's wanted to do this as they were going into rented. Our solicitor refused, it is not their money until the contract is completed. Until then it is held by their solicitors and they can't have access other than by agreement and the only time solicitor's will agree is if it is going along the chain.

40yearoldgraduate

well the house completes on Friday, after several weeks of trying he found a private landlord and all seemed okay - including a conversation earlier today about when would be a good time to pick up keys because the landlord has an appointment in the morning.The nightmare of nowhere to live with a four year old seemed to have been averted and whilst still not an ideal situation it was at least somewhere to go and begin the process of moving on with life.

BUT

as of a couple of hours ago the landlord has said that due to something in the credit check he is now not willing to rent to him.Even though this debt he mentioned will be paid IN FULL on Friday and the money for the debt is actually being transferred directly from the solicitor and written proof of this could be provided. But the answer is still no.

So with about about a day to go, the entire contents of the house are now being moved in to storage ( more money to shell out) and an appointment has been made with the council tomorrow but with completion date just hours away, everyone is beside themselves with emotion and all feels hopeless.

40yearoldgraduate

Just to clarify this is my ex- I think someone thought it was my brother.

His family are hopeless and his parents have said they can't help him because they have a holiday to America to pay for (nice people) I have no family myself and although the child in this situation isn't mine, as a mother myself I'm obviously so worried and also even though is my ex we were together a long time and it's just awful to see him like this.