parents going to lose their home

Davenohome

My parents are over 70+, and dont work, they live in we think a £550000 worth might be less semi house, they lived there all their lifes (only house they ever owned), they are not rich only living off thir pensions now, not alot. But have a mortgage debt of 330000, and they have not been paying for a few months now, also i think he made a deal long ago 10 years for another mortgage deal, which has expired, and they have got a letter saying due to missed payment and end of deal 10 years ago they going to start the process of taking the house and sell it to pay off the debt. They tried to get  equity release but no one will do it either. My mother has always warned my dad they have to move over the last couple of years but he kind a stubborn , says he wont leave unless in a box. Also the mortgage people have never been great hard to contact + rude , also we got this mortgage company  when it was sold or swap to them from older mortgage when bank mergers happen, their debt was sold them or just transfered.

So i dont know what to do or advise them. they dont have any savings. Mum keeps hoping on lotto tickets and gofund me type webpages is going to save the day or raffle the home. which are all pipe dreams. They have been to the CAB a few times, but nothing.

The only outcome is we can strike a deal to sell the home on our own terms, but i think my parents have asked for that, and this is the end for them. My parents work in hospitals all their lives and this how they end up.

This all going aswell duing this Covid-19 stuff too!. We saw the announcement mortgage hoilday thing on the news today, but we dont know if that helps us, maybe it just delay 3 months for us.

Any advice?

[Deleted User]

Davenohome said:

My parents are over 70+, and dont work, they live in we think a £550000 worth might be less semi house, they lived there all their lifes (only house they ever owned), they are not rich only living off thir pensions now, not alot. But have a mortgage debt of 330000, and they have not been paying for a few months now, also i think he made a deal long ago 10 years for another mortgage deal, which has expired, and they have got a letter saying due to missed payment and end of deal 10 years ago they going to start the process of taking the house and sell it to pay off the debt. They tried to get  equity release but no one will do it either. My mother has always warned my dad they have to move over the last couple of years but he kind a stubborn , says he wont leave unless in a box. Also the mortgage people have never been great hard to contact + rude , also we got this mortgage company  when it was sold or swap to them from older mortgage when bank mergers happen, their debt was sold them or just transfered.

So i dont know what to do or advise them. they dont have any savings. Mum keeps hoping on lotto tickets and gofund me type webpages is going to save the day or raffle the home. which are all pipe dreams. They have been to the CAB a few times, but nothing.

The only outcome is we can strike a deal to sell the home on our own terms, but i think my parents have asked for that, and this is the end for them. My parents work in hospitals all their lives and this how they end up.

This all going aswell duing this Covid-19 stuff too!. We saw the announcement mortgage hoilday thing on the news today, but we dont know if that helps us, maybe it just delay 3 months for us.

Any advice?

I'm guessing this was an interest only mortgage and you're saying the term ended 10 years ago so the lender has already given your parents a decade to sell the property on their own terms. 

What stage are things at with the lender? Have they applied to court or already been to court? 

kazwookie

If they have lived their all their lives,

How come they have a mortgage/ were able to get such a mortgage years ago of £330,000.

Who is the mortgage company?

I don't think you have the full story, and if your parents will let you, you need to get their paperwork out and investigate what has been going on, and contact their mortgage company of their behalf to see what can be done.

Davenohome

They mortgaged the house long for a failed nursing home buisness 25 years ago, and still have a that debt from that. Its the first house the bought when they got married.

They have sent the first letter of they going to start repossession, soon in 7 days. got letter on Sat

The mortgage company is called TMB www.t-m-b.co.uk

csgohan4

No harm in trying to get it sold asap at a price, but sadly if repo is being done not much you can do, the repo costs will be significant and your parents will owe more than what the mortgage is due.

Your parents could have sold the house and downsized, but they chose not and ignored letters from the bank over the last 10 years since their deal has ended. They have to live with the consequences and they were adults when they decided not to do anything. 

Wish you all the best

Whats_your_forte

There are no solutions unless the rest of the family are willing to help with payments in the interim. TMB were a self-cert lender and so sounds like your parents crossed the line with a few aspects of the original mortgage.

Sell the property is the only solution. If they net £200k, they can still buy another property with either a equity release mortgage or RIO and get something a little bit better depending on the area. Hope it works out.

AnotherJoe

On the upside seems like your parents might still have circa £200k and can use that and their pension to downsize into decent smaller more suitable place perhaps a retirement flat which might help your mother rather than being at the mercy of what seems like a stubborn husband whose been ignoring reality for ten years.  

amnblog

Regarding the three months 'mortgage holiday' - I cannot see that being applicable where a borrower is already in arrears.
Sounds like Dad needs to get out of King Canute mode.

Caz3121

on a practical note, are there family that can help pack up the current property for moving? having lived there for so long I imagine it will be a very emotional time for them leaving the property

AnotherJoe

ps you should point out to your dad that in this climate selling a house as a repo will be even worse than normal and if he can come to an agreement to sell quickly he could get a lot more money than if the lender  sells it at any price. 

davidmcn

AnotherJoe said:

ps you should point out to your dad that in this climate selling a house as a repo will be even worse than normal and if he can come to an agreement to sell quickly he could get a lot more money than if the lender  sells it at any price. 

Though I also wonder how keen lenders will be to take on the costs/risks of repossessions at the moment, particularly where (as in this case) it looks like they'll eventually get everything owed to them no matter what happens.