Should i stay or should i go?

princepilot

Okay,

I have a house on mortgage and have £4900 of arrears. In a crappy area but houses are selling quite good as they are quite a bit cheaper then elsewhere.

If i sell now i will sell for 90k and the house owes me £66k (including arrears, early redemption etc) so will make roughly 24k

OR.... Should i wait till aug 08 (no redemption then and could pay probably 2k of my arrears) and then sell it and then i should walk away with about 29-30k but will have to tolerate the crappy area.

Do you think this price crash will happen at all , or before aug 08?

If i sell now i stand to make 24 , or if i sell 10 months down the line i stand to possibly make 30k , alot of difference.

Matt

CB1979_2

i hope this is a joke, however if house prices fall you could make less/a loss and be properly up the creek!!!

you are already in £5k worth of arrears (plus god knows however much other debt), you may not have a choice to stay there another 10 months if your mortgage provider has anything to do with it!

I'd sell now, clear all debts pocket the £24k and rent or start again somewhere you can AFFORD (ie your monthly income exceeds your outgoings)

but alas no doubt you'll spunk the money on crap

DawnW

Won't your lender move to repossess if you don't pay off your arrears?

m00m00

on a 60-70k mortgage, 4900 in arrears is probably close to a years worth.

I'm amazed they haven't moved to repossess already

CB1979's advice is the best you are likely to hear today.
Sell, and be sensible with any equity you are left with.

having those arrears is going to make it more difficult for you to get a competitive mortgage going forward.

princepilot

CB1979 wrote: »

i hope this is a joke, however if house prices fall you could make less/a loss and be properly up the creek!!!

you are already in £5k worth of arrears (plus god knows however much other debt), you may not have a choice to stay there another 10 months if your mortgage provider has anything to do with it!

I'd sell now, clear all debts pocket the £24k and rent or start again somewhere you can AFFORD (ie your monthly income exceeds your outgoings)

but alas no doubt you'll spunk the money on crap

CB1979,

For your information, the reason i have mortgage arrears is down to my partner being disabled and needing me to be at home to look after my 2 children. And as for me spunking the money on crap??? I certainly dont/wouldnt do that. Who are you to prejudge people on here. I could afford the mortgage payment very easily before i had to pack in work. People like you make me sick, you shouldnt be on this website if all you talk is crap. And the mortgage company and i have a payment arrangement in place that i am sticking to so wrong again Mr , no repossession.

I wonder how much debt you have? Oh how silly of me. You musnt have any , with you being so perfect and having never had any problems in your life. Well, get in the real world!!! , People have problems , doesnt automatically make them bad with money or bad people. I had a Class A credit rating before this so am comfortable im not the person you are trying to paint.

Why dont you **** off and go and judge somebody else. !!!!!!!!!

CB1979_2

well !!!!!! happens, so you can't afford it obviously (you may have in the past doesn't mean you can now), surely you have an insurance policy in place to cover for this kind of thing??

and not being funny if you can't work cos you gotta look after little ones, surely the council can help, no doubt you have contacted CAB about what could be done?

but your circumstances are no different to people who used to be able to afford the mortgage on a low fixed rate and now can't afford it (ie don't have enough money coming in)

not trying to be facetious or judging you but surely it's a no brainer, you are in arrears, you have no where near enough coming in, you're going to get into more arrears with no sight of getting on top of it?

the mortgage company will not hang on forever until they say enough is enough, especially if house prices do start to fall in your area.

I'd sell up & rent/council housing and pocket whatever you have left.



oh and great PM! LOL idiot
Thanks for the totally silly response on my thread. People like you make me sick. Get a life fukwit and dropdead!

princepilot

Who says i dont have enough money coming in now??? , if you would have read the post corectly it stated that i could pay £2k of the arrears!!

That means paying the mortgage payment AND the arrears.

Read the threads properly in future. Then you dont have to start judging people!

nobblyned

You can now afford the mortgage, so why are you needing to sell?

princepilot

Because of the crappy area. And i have made alot of money on it so why not sell up and start a fresh in an area i can afford?

Matt

nobblyned

Wouldn't a non-crappy area be more expensive?

I would avoid thinking that you have 'made money', you still need to buy another house, and those will have gone up equally.

In addition you will have to pay estate agents, stamp duty (possibly), removals, redemption fee (possibly). You will probably also find it difficult to get a reasonable rate on your new mortgage and will have to pay arrangement fees etc. All in all leaving you significantly worse off.

Unless of course you are planning on using the capital raised to rent in a better area? But personally I wouldn't change the security of owning a house I can afford for the shifting sands of the rental market.

silvercar

Whether to sell depends on where you will then live.

If you are intending to buy, your current mortgage arrears will damage your chances of getting a large mortgage and effect the loan rate you will get.
You may not even be able to borrow the loan amount you have now if your family income has reduced.

So the choice seems to be renting or staying put. The problem with renting is you could end up moving quite often; something I wouldn't fancy with young children and a disabled spouse.

Unless you could get a council rental, which would at least give you some security, or rentals were very much cheaper than buying, I would stay put.

Do make sure you are claiming all benefits you are entitled to and that you keep up agreed repayments on your mortgage.