Anyone experienced this?

fkr

Hello
I am wondering whether anyone has had a similar situation and how they handled it...I bought a new build in June and was immediately made redundant (bad timing!). The developers have sold no properties since mine and have been offering cashback of £20000 and 100% part exchanges over the summer. However, my problem is they are now offering houses like mine for £30000 less than I paid. This means my property has been devalued to a point that I could never have imagined and placed me in a negative equity position. I feel very distraught and am tempted to find one of the buy any house people to get rid of the place as I've lost so much anyway. With no job, I just feel so stuck.
Has anyone had this experience and how have you handled it?
Thanks

Hoploz

You have to hang in there, keep paying the mortgage as long as you can, until you get yourself a new job and become secure again.

There is no sense in flogging your house at a loss. You would be homeless and in debt (if you are genuinely in negative equity, which is different to the house being worth less than you paid)

I don't know about your area but in most places I know it costs more per month to rent than to pay a mortgage on the same house.

Chanes

That's some really bad luck! I would try and hang in, you haven't lost any money until it is realised such as when you sell it. I hope you get a new job soon and your luck turns for the better.

davidmcn

fkr wrote: »

This means my property has been devalued to a point that I could never have imagined and placed me in a negative equity position. I feel very distraught and am tempted to find one of the buy any house people to get rid of the place

If you are genuinely in negative equity then that isn't an option, as you'd still need enough to pay off the mortgage (even less likely given the low prices such guys offer).

latisha_2

Just think of mortgage and focus on where you can find a job instead of dwelling on the equity that made you upset.

fkr

Thank you all for your sound advice. It is so helpful to get your perspectives because I am too emotionally involved in the situation to think straight. Will do as suggested and focus on the job.
Really appreciate your answers.

ap1985

Oh dear...that is such bad luck...Think positive and hang in there!

TBagpuss

In the short term, look into whaether there is anything tyou can do to improve your finacial position. Looking for a new job is key, but also check that you are claiming eveything you are ntitled to, and look at whether you could in the short term find any kind of wirk untik you find a job ofthe kind you want, and also consider whether it would be practical to take in a lodger to boost your income (obvoiously this depends what you are currently caliming in benefits as it might not help)

kingstreet

Did you insure against job loss?

Have you put in a claim for Support For Mortgage Interest?

Hoploz

Great advice above.

Maximise your income from different sources, just to get that mortgage paid. Lodger - great idea, and you don't even have to pay any tax on rent up to a certain amount. This could even be enough to pay your mortgage in its own in some scenarios.

Or if you end up without alternative income for a longer term, another option could be to move out and let the place. If you're on your own perhaps a family member could put you up for 6 months while you rent your place out. It's not what you want but could be a way to get through temporary hardship. It is an asset, so use it that way!

My brother was caught in negative equity. Bought in 1988 and had to sell in the subsequent recession. Huge negative equity, interest rates up at 13%. He and his wife had no way out. They worked full time and still couldn't afford the mortgage on their 1 bed flat. It's different this time, interest rates are super-low, so you have options lots of people didn't have back then.

THINK POSITIVE!!!