Sell property asap but stay in it, advice please

comeandgo

If they won’t allow you to remortgage on interest only, can you not try a normal repayment mortgage?

Rellen

I tried so many brokers and ways at the time to try and get a remortgage on any term. My credit score was perfect (then) and proved the repayments but my salary just wasn’t enough to do it. 

Hermann

Rellen said:

Hermann said:

I think you've burned through a lot of the possible leeway/goodwill/co-operation by 'ignoring' the communications and only responding once the court hearing is arranged, regardless of the reasons.

There is often the ability to extend deadlines but the lender has to have confidence in the 'plan' to resolve the situation. You need to decide on a realistic way forward and present that to them however given your last 'plan' failed & you failed to communicate that to the lender they may be reluctant to believe your latest 'plan'.

It may be that if you get a housing/debt counselling service involved they present a case that may be more readily accepted and be more believable if it is through recognised professionals.

However it sounds like your overall financial situation is problematic and perhaps simply selling the house doesn't solve much.

I'd recommend posting in the 'debt free wannabe' section of the forums with your overall situation to see if there are any better solutions as well as getting professional advice. 

Hi. I think somehow you’ve misread what I wrote? 

When I said I’d missed calls that was from start of the new year to the letter backdated to the 11th. It’s literally days as id spoken to them before Christmas. 

Also when I said the plan to sell to my brother was no longer an option, this is only after the court letter and that we now can’t go ahead with a normal sale/standard mortgage
timeframe. So there was no failure for them to use as a reason and nothing for me to inform them about. 

I am aware of my problematic situation and have only been transparent on here for advice to figure out the best solution to avoid court and having my house repossessed. 

With all that said, Thank you for recommendation on dfw I’ll certainly check that out. 

Apologies if I've misunderstood some of the details and I know it seems harsh but however you've ended up at this point it's important to be realistic and find the best way forward.

Help is available both from professionals and from places like the MSE DFW board and I think you really need some of that help right now,

The end of an interest only mortgage is not a surprise event and would always have needed a solution to pay off the remaining loan planned long in advance. The lenders of such mortgages engage long before the end of term to try and ensure a solution is in place. I appreciate you've said a family member was expected to buy the house and that has only recently fallen apart so that partly explains things.

That you've ended up out of term with no remortgage or sale in place suggest you really do need to engage with help & advice as on your own you've missed important deadlines and now also have the issues with credit cards etc. 

This very easily becomes a horrible downward spiral that consumes any equity you have but it doesn't have to be.

There are solutions and help available, and I'd be surprised if there wasn't some flexibility available from the lender if the correct approach is taken with the right plan presented.

I'd repeat the advice to post in DFW & also recommend you do a Statement Of Affairs, perhaps this one and use the format for MSE option as you work through it which will help with getting advice on the DFW board.

https://www.lemonfool.co.uk/financecalculators/soa.php

Posters on the DFW board will also be able to give better advice on which specific organisations to approach for the help you need.

Don't delay, act today!

If you have equity in the house you need to protect as much of it as you can but you also need to know what you're doing/able to do after a sale if a sale is part of the answer.

Rellen

Hermann said:

Rellen said:

Hermann said:

I think you've burned through a lot of the possible leeway/goodwill/co-operation by 'ignoring' the communications and only responding once the court hearing is arranged, regardless of the reasons.

There is often the ability to extend deadlines but the lender has to have confidence in the 'plan' to resolve the situation. You need to decide on a realistic way forward and present that to them however given your last 'plan' failed & you failed to communicate that to the lender they may be reluctant to believe your latest 'plan'.

It may be that if you get a housing/debt counselling service involved they present a case that may be more readily accepted and be more believable if it is through recognised professionals.

However it sounds like your overall financial situation is problematic and perhaps simply selling the house doesn't solve much.

I'd recommend posting in the 'debt free wannabe' section of the forums with your overall situation to see if there are any better solutions as well as getting professional advice. 

Hi. I think somehow you’ve misread what I wrote? 

When I said I’d missed calls that was from start of the new year to the letter backdated to the 11th. It’s literally days as id spoken to them before Christmas. 

Also when I said the plan to sell to my brother was no longer an option, this is only after the court letter and that we now can’t go ahead with a normal sale/standard mortgage
timeframe. So there was no failure for them to use as a reason and nothing for me to inform them about. 

I am aware of my problematic situation and have only been transparent on here for advice to figure out the best solution to avoid court and having my house repossessed. 

With all that said, Thank you for recommendation on dfw I’ll certainly check that out. 

Apologies if I've misunderstood some of the details and I know it seems harsh but however you've ended up at this point it's important to be realistic and find the best way forward.

Help is available both from professionals and from places like the MSE DFW board and I think you really need some of that help right now,

The end of an interest only mortgage is not a surprise event and would always have needed a solution to pay off the remaining loan planned long in advance. The lenders of such mortgages engage long before the end of term to try and ensure a solution is in place. I appreciate you've said a family member was expected to buy the house and that has only recently fallen apart so that partly explains things.

That you've ended up out of term with no remortgage or sale in place suggest you really do need to engage with help & advice as on your own you've missed important deadlines and now also have the issues with credit cards etc. 

This very easily becomes a horrible downward spiral that consumes any equity you have but it doesn't have to be.

There are solutions and help available, and I'd be surprised if there wasn't some flexibility available from the lender if the correct approach is taken with the right plan presented.

I'd repeat the advice to post in DFW & also recommend you do a Statement Of Affairs, perhaps this one and use the format for MSE option as you work through it which will help with getting advice on the DFW board.

https://www.lemonfool.co.uk/financecalculators/soa.php

Posters on the DFW board will also be able to give better advice on which specific organisations to approach for the help you need.

Don't delay, act today!

If you have equity in the house you need to protect as much of it as you can but you also need to know what you're doing/able to do after a sale if a sale is part of the answer.

I apologise too, over the last few days I’ve had to explain things a lot and deal with a lot of negative and nastiness from ppl close to me.

Truth is when it was coming to end of term the mortgage co were understanding that my salary wasn’t what it was as I’d taken a pay cut during covid lockdown and it hadn’t increased. I tried for remortgages but couldn’t get with the salary. I was trying another broker when the company went into administration and I was made redundant. So remortgage was impossible even if I started new job I’d need months on record in new employment. Since then I’ve struggled to get a job within my usual salary, hence problems repaying credit cards. My brother buying was the solution for house and mortgage were totally on board when we spoke in December and I had no inkling they’d file for court. 

 Right now I’m just trying to focus on best way to sell and stop court proceedings and as you say get as much equity out as possible. 

All this advice you’ve given is so helpful. Thank you so much

GDB2222

I've read through 7 pages of this thread, and nowhere has the OP given any numbers. I don't think that this is intrusive, as it matters crucially how much equity the OP has in the property. 

Also, can I ask whether you have looked at the online benefits calculator? I have lost track whether the OP is out of work, or in work but on too low a salary for the mortgage?

Rellen

GDB2222 said:

I've read through 7 pages of this thread, and nowhere has the OP given any numbers. I don't think that this is intrusive, as it matters crucially how much equity the OP has in the property. 

Also, can I ask whether you have looked at the online benefits calculator? I have lost track whether the OP is out of work, or in work but on too low a salary for the mortgage?

Hi. I’m sorry!
 I originally just wanted to see if it were possible to sell and stay in house and thoughts on modern auctions (found out that’s a big no no!) or the best way to sell and have something certain to give to mortgage co to stop court. 

But people have been so helpful in all aspects it’s kind of got away! I really appreciate it. 

Yes I’m working but it’s nowhere near my usual salary, that’s why I can’t get another property and the personal financial problems/ worries about renting etc. 

had valuation yesterday, there should be some equity but I need as much as possible, which why I was worried for traditional auction as I thought they were only for bargain properties. 

Hope that sums up, again sorry it’s got carried away!

GDB2222

Don't apologise! Nobody had asked for numbers.

To summarise:
Your salary is much lower than it used to be.
You have some equity, but not a lot.

I suggest that you check whether you would be entitled to some assistance from benefits. There's a couple of links to calculators here:

https://www.gov.uk/benefits-calculators

The Turn2us calculator was one I have seen recommended in the past, but I have no idea whether it's still recommended. Maybe, an expert could advise?

My personal view, it's lovely that you are worried about the cat, and you sound like a lovely person, but you need to prioritise yourself. 

mi-key

How much equity are you looking at? Would it be enough to get somewhere, even if its a one bed flat in a not so nice area, just so you stay on the property ladder and dont end up losing all the equity on rent ? At least that way if you can get work at your normal salary in a couple of years you can then look at moving somewhere better

Rellen

GDB2222 said:

Don't apologise! Nobody had asked for numbers.

To summarise:
Your salary is much lower than it used to be.
You have some equity, but not a lot.

I suggest that you check whether you would be entitled to some assistance from benefits. There's a couple of links to calculators here:

https://www.gov.uk/benefits-calculators

The Turn2us calculator was one I have seen recommended in the past, but I have no idea whether it's still recommended. Maybe, an expert could advise?

My personal view, it's lovely that you are worried about the cat, and you sound like a lovely person, but you need to prioritise yourself. 

Thank you so much, that’s kind of you to say and I know good advice but there’s no way I’m not looking after my cat. He’s getting on and hates everyone but me! Bad enough to give up childhood home but I’d truly never forgive myself when it comes to the cat. 

Thank you for that link. I’ll check that out too

Rellen

mi-key said:

How much equity are you looking at? Would it be enough to get somewhere, even if its a one bed flat in a not so nice area, just so you stay on the property ladder and dont end up losing all the equity on rent ? At least that way if you can get work at your normal salary in a couple of years you can then look at moving somewhere better

I just assumed with getting the default last week and I know credit score is now so bad that there’s no way I’d get mortgage even cheap. I need to get few more valuations as the estate agent was only talking about the modern auction method.