Negative Equity & Welcome Finance

Whistler_3

Hi

has anyone ever been in this position, off the back of another post i am considering selling up, however my situation is as follows:

property Value £225,000

mortgage £181500
redemption pen £9075
Secured loan (EPF) £40000
Secured loan (welcome) £15000

Total Secured £245575

The main reason I am consdering this is that I am currently spending £1900 on Mortgage and secured loan payments, and can rent a property for £1000

Any input from anyone who has been ion this position would be greatly appreciated

Crown

Hi Whistler,

I think you need to speak to the CAB or one of the debt charities regarding this as I dont think the Creditor will let you sell up if you cannot repay the outstanding £20,000. If you did hand the keys back to the lender they would sell it off for the best price they can receive normally at auction and any difference you will be responsible for.

I recently had a flat repossessed as the charges had pushed the amount I owed into negative equity. As this wasnt my main residence my situation may be a little different but I was told that there was very little I could as the property is the lenders and in the end it was better for me to let it go as It would continue being a drain on my finances.

You really need professional advice on this as the situation doesnt look sustainable. As the debts are secured a DMP is out of the question I should think although there might be a way to to do some type of IVA??

If not have you considered bankrupty? It isnt something to be taken lightly but if you are considering selling up maybe you could clear all the debt in one and then start afresh.

Sorry I havent got definitve answers but wish you the best of luck with whatever you decide. In my case the CCCS offered me excellent advice and ebven gave me details of free legal adivors I could use.

Regards