Advice on voluntary repossession

Smiddy20

Not sure  hopefully learn my lesson.
But if i let the dump of a house go
i defo will go bankrupt so me owning them
doesnt make to much difference
a could be wrong thou

fatbelly

Smiddy - I hadn't seen this thread since my irst post until now.
Did you talk to Shelter?
I've now seen your soa and it just looks like a debt manaagement plan situation to me.
So two other places worth chatting  with are Stepchange and Payplan

Smiddy20

Hi ye they said i would be making my self intentially homeless.
Ive spoke to step  changers they recommend a dmp.
The problem is i hate the house I live in
cant get rid of the thing.

fatbelly

Then it sounds like you've had good advice to me.
You don't love the house you live in but if you stick with it something might turn up. There are worse options than being an owner-occupier, even if it is a dump.

enthusiasticsaver

Any house will sell at the right price so if you want to get rid of it you will need to lower the asking price or make it more appealing. Your income is low as is your partners. Can either of you get a second job or work more hours? Make a list of essential repairs and get quotes. Going bankrupt will make renting difficult so that is not to be taken lightly.

IrishSean

As ES, sourcrates & others said, an IVA (if an option, im ot an expert, sry) even bankruptcy would allow you to keep a roof over your head; play for time, seek advice from the free debt charities.

F the card & loan companies (sry i'm in a candid mood today), let them trash your credit rating: having your own bed to sleep in, even if the house isn't fantastic & the neighbours are a pain, it'll be an alamo until you can rebuild:
Financially
Mentally
Emotionally

If you hand back keys without bank forcibly selling from under you, you could end up in terrible accommodation, or God forbid, none at all. I worked with homeless charities & some ppl I saw fell really far by losing the safety net of a 'fixed abode'. When you come through it, sell on your own terms & rent with any equity you can take. If you saw it out for 6 years you could even remortgage or move...

There should be an array of forebearance in place for you: the sentiment here is don't give up! It'll b hard, of course, but do everything you can to find a platform under you to build from💪💪💪

The irony is in RoI a few miles from me it's almost impossible for lenders to take homes; legacy of rogue landlords 100 years+ ago. As a result noone with a mortgage would surrender keys.

Explore every option as others advised.

GL

 

Smiddy20

Thank you thats great advice.
Enthusiasticsaver  i would secure rental before leaving the house.
Job wise wife is trying but  the problem we have we dont have a car so makes it harder to  and we have no1 to help for childcare.

[Deleted User]

Smiddy20 said:

Hi ye they said i would be making my self intentially homeless.
Ive spoke to step  changers they recommend a dmp.
The problem is i hate the house I live in
cant get rid of the thing.

What would make you change your mind about the house and  make you like it again ?
If you had unlimited money what would you do to the house ?
.
By abandoning the house and renting somewhere you will still have expenses each month, that aspect won't alter -  bills will still rack up, cars will still need money spent, clothes, food, etc, etc, etc. all homeowners are on this merry-go-round of wages in and then straight out again.
It never changes, what does change is your mindset.
If you can't change the house, currently, then change the way you look at the problem.

Give yourself a talking to, sit yourself down, and have a long, hard, look at where your hard earned money is going each month and start to set aside monies to tackle 1 item/job at a time.

warby68

The true problem is the unsecured debt which means you can't get ahead and fix the house. Your mortgage payment is a reasonably cheap accommodation cost for a family of 4.
You want to give the keys back not because its unaffordable in itself but because you want the shiny new rental.
If you can shift the mindset to dealing with your unsecured debt first it will probably give you a better long term outcome. If you really want to get rid selling for whatever price you can rather than repo is likely to be better - most will sell if you go low enough. It wouldn't be my advice though, not with a young family and the uncertainty of trying to rent as a bankrupt or similar, but your story is familiar so I wonder if you've been here before with this and if so your mindset is obviously struggling to change.
What about just getting a DMP going for some breathing space hopefully with some margin to spend a bit on the most essential home repairs - essential stuff such as heat, water, security etc would be factored in in some way - perhaps token payments for a while.
See how you feel when the pressure lifts a bit
Plus you generally need more income - can you work on that too. Paying parents back at this time, whilst understandable, isn't ideal either. Do they know how tough it is for you at the moment?

enthusiasticsaver

Smiddy20 said:

Thank you thats great advice.
Enthusiasticsaver  i would secure rental before leaving the house.
Job wise wife is trying but  the problem we have we dont have a car so makes it harder to  and we have no1 to help for childcare.

Where would you get the deposit from for the rental? You have no savings.  Are your mortgage and loans up to date (and if so, how given your deficit?) What would you do about the rest of your debt and inevitably a mortgage shortfall plus court costs etc. You don't just hand back keys. There is a legal process to go through which involves solicitors, court hearings and as I say lenders don't hold out for the best price. They just want their money and will continue to come after you for the shortfall. It is not the easy option. It isn't a car. Quite rightly it is difficult to evict someone from their home to protect you so it takes around 6 months to do that and the mortgage will be much higher as you will have missed payments and legal costs.

You will jeopardise your whole financial future. What happens when you have to move from your rental and have to go through credit checking etc? Landlords sell up so at the end of your tenancy you are in a precarious position.

My advice is to stay put, sort out the unsecured debt and start living within your means. The problems about bills, debts etc will not go away by you moving into rented accommodation and you are in a more insecure position re housing than if owner/occupier. When your children are older and your wife can work either move to a nicer house or save to get work on it finished. I worked all through my children's early years (part time) with no family help as they lived far away. My husband worked erratic hours so I did not even get help from him. There is more government help with childcare now with free hours from 3 years old and a plethora of childcare options, childminders, nurseries etc. Lots of people with young children work.