Verge of Repossession

strawb_shortcake

Please move if this is the wrong board.
I wrote here before about my brother, back in June he was on the verge of being repossessed, he borrowed £7k from my parents and has been paying them back. Unfortunately he hasn't been paying his mortgage, he now needs to pay an additional £4k by Wednesday or he'll be evicted. My parents are now torn between bailing him out one last time on the condition he sells the flat.
This is well out of my knowledge on what the best step would be. It's very much evident he cannot keep up his mortgage payments going forward, I suspect he has council tax and possibly water rates debt. His electric is on a meter so that's being paid. The other big one is that he's "self employed" and if he's paid any tax or NIC I'll eat my hat!!
So I guess my question is should my parents help him sell the flat conventionally or go with the repossession? Any benefits of taking a particular route?
If it makes a difference he's 50 with no partner or dependents

TIA

Davy_Jones_II

Repossession will tend to be a worse outcome than selling up yourself, even if you have to sell at a bit of a discount.

This is a bit of a sideshow though if he doesn’t address the underlying issues.

WhenIam64

Should really be in this thread as it is the same issue - and the same advice

https://forums.moneysavingexpert.com/discussion/6036581/landmark-repayment-to-interest-only

Swapping between threads may mean that vital information is missed and incorrect advice given.

fatbelly

annabanana82 wrote: »

he now needs to pay an additional £4k by Wednesday or he'll be evicted.

Can you be a bit more precise about what has happened?

How many times has he been to a court hearing about his mortgage and what was the outcome in each case?

strawb_shortcake

fatbelly wrote: »

Can you be a bit more precise about what has happened?

How many times has he been to a court hearing about his mortgage and what was the outcome in each case?

As far as we are aware it's never got to court, the last time in June, he was due to have the baliffs/evictors? round in the afternoon if he hadn't paid the £7k by 2pm. I'm not saying it hasn't been to court but I'm certain my Brother hasn't been present in court for this. He has a terrible habit of burying his head in t3
He sand and not opening the letters never mind reading them. But how this latest £4k was communicated to him I couldn't say.
In years gone by he struggled to pay the mortgage and he ended up overpaying to pay off the arrears, the overpayments were stopped over a year ago (apparently he was in credit at that point) I suspect that's when he stopped paying the mortgage.
Unfortunately with leaving it to last minute again my Mum is under pressure to help him, I don't suppose he has been fully honest with his income and more importantly where it goes. I maintain it's just delaying the inevitable, but I do get that my Mum wants to help him - My Dad doesn't have the same level of sympathy.

enthusiasticsaver

Can your parents afford to help him? It may be throwing good money after bad as if they give him the money but he does not pay going forward he will be in the same position again in a few months time. How on board is he with selling his flat as they will not be able to force him to sell.

I understand they are in a very difficult position here and I personally would not give him any more as he does not appear to be wanting to help himself and the chances are it will just delay the inevitable. There is no denying though that selling a property yourself is better as you are in control, hopefully he would avoid court costs and usually you would get a better price than a repo would. How much equity is in the flat?

One thing to remember is he probably wont get priority council housing as he does not have dependants so he will need to find his own private rental which may not be easy with a repossession on his record.

tallyhoh

I believe this matter must have been to court for an eviction order, even if he didn't attend. Have you or your parents seen any paperwork regarding an imminent eviction?

enthusiasticsaver

Does he actually have an eviction date or is the bank just saying they will proceed with eviction proceedings if he does not pay by Wednesday?

strawb_shortcake

enthusiasticsaver wrote: »

Can your parents afford to help him? It may be throwing good money after bad as if they give him the money but he does not pay going forward he will be in the same position again in a few months time. How on board is he with selling his flat as they will not be able to force him to sell.

They can afford to help him, but it's eating into savings for them.to enjoy their retirement, they are both retired now so no they are no longer adding to their savings to the same extent as pre retirement. He wants to keep the flat on the premise he is expecting a pay rise next month.

I understand they are in a very difficult position here and I personally would not give him any more as he does not appear to be wanting to help himself and the chances are it will just delay the inevitable. There is no denying though that selling a property yourself is better as you are in control, hopefully he would avoid court costs and usually you would get a better price than a repo would. How much equity is in the flat?
That's my gut feeling too, I have a feeling they can't access their savings soon enough for Wednesday. He owes £70k on the mortgage, in better condition he'd get £140k but I guess £120k is more likely but I'd edge on this being top compared to other 1 bed flats on the market.

One thing to remember is he probably wont get priority council housing as he does not have dependants so he will need to find his own private rental which may not be easy with a repossession on his record.

No, we are aware of that, if the new job comes off he'll be working away Monday to Friday and a local takes in lodgers for £40per night for weekends.

strawb_shortcake

tallyhoh wrote: »

I believe this matter must have been to court for an eviction order, even if he didn't attend. Have you or your parents seen any paperwork regarding an imminent eviction?

No we haven't, I have asked for this to understand what the £4k is for, what months of mortgage this covers, and when the next mortgage payment is due and can he pay this.

strawb_shortcake

enthusiasticsaver wrote: »

Does he actually have an eviction date or is the bank just saying they will proceed with eviction proceedings if he does not pay by Wednesday?

Going by the last time in June, if he hadn't paid by 2pm then it was going to court in the afternoon and he'd be locked out from that day - I've no idea if this is factual or not but the story we got. I am assuming this is the same again. I have no idea how repossession works to begin to understand if the above is even viable.