Someone who is behind with the rent

MWT

R200 said:

silvercar said:

R200 said:

MWT said:

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

If the mortgage company "buys" more of the property the mortgage length would be longer as it would be for a larger share.

The mortgage company won’t be buying more of the property. They will be making a payment of the rent arrears in order to protect their interest in the property. So the total amount owed will be greater for the same share owned. The mortgage payments will increase to cover the increased borrowing.

Yes if it was say 50% shared ownership it could go now to 60-70% shared ownership with the increased mortgage to buy a further percentage of the property.

so the rent would be negotiated lower to an amount the tenant can afford. Have to bear in mind the increase in mortgage payments when the LL negotiations are happening 

None of that makes sense for any of the parties concerned.

If your friend can't afford to pay the rent then they are going to struggle even more once the mortgage increases.

If your friend cannot stay current on the rent now, why is their lender going to consider them a good risk for an increased mortgage? failure to pay rent puts their security on the property at risk and a few extra shifts and overtime in the short-term isn't likely to outweigh the impact of the debt to the landlord.

If the rent isn't paid why would the HA agree to staircase anyway?

If your friend can get extra income in the short term then pay off the rent that is owed and then see if staircasing is possible/affordable.

R200

MWT said:

R200 said:

silvercar said:

R200 said:

MWT said:

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

If the mortgage company "buys" more of the property the mortgage length would be longer as it would be for a larger share.

The mortgage company won’t be buying more of the property. They will be making a payment of the rent arrears in order to protect their interest in the property. So the total amount owed will be greater for the same share owned. The mortgage payments will increase to cover the increased borrowing.

Yes if it was say 50% shared ownership it could go now to 60-70% shared ownership with the increased mortgage to buy a further percentage of the property.

so the rent would be negotiated lower to an amount the tenant can afford. Have to bear in mind the increase in mortgage payments when the LL negotiations are happening 

None of that makes sense for any of the parties concerned.

If your friend can't afford to pay the rent then they are going to struggle even more once the mortgage increases.

If your friend cannot stay current on the rent now, why is their lender going to consider them a good risk for an increased mortgage? failure to pay rent puts their security on the property at risk and a few extra shifts and overtime in the short-term isn't likely to outweigh the impact of the debt to the landlord.

If the rent isn't paid why would the HA agree to staircase anyway?

If your friend can get extra income in the short term then pay off the rent that is owed and then see if staircasing is possible/affordable.

The idea is to reduce the rent to what she can afford and the bank buying a further share of the property by increasing the length of the mortgage but keeping the payments the same

Emmia

R200 said:

MWT said:

R200 said:

silvercar said:

R200 said:

MWT said:

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

If the mortgage company "buys" more of the property the mortgage length would be longer as it would be for a larger share.

The mortgage company won’t be buying more of the property. They will be making a payment of the rent arrears in order to protect their interest in the property. So the total amount owed will be greater for the same share owned. The mortgage payments will increase to cover the increased borrowing.

Yes if it was say 50% shared ownership it could go now to 60-70% shared ownership with the increased mortgage to buy a further percentage of the property.

so the rent would be negotiated lower to an amount the tenant can afford. Have to bear in mind the increase in mortgage payments when the LL negotiations are happening 

None of that makes sense for any of the parties concerned.

If your friend can't afford to pay the rent then they are going to struggle even more once the mortgage increases.

If your friend cannot stay current on the rent now, why is their lender going to consider them a good risk for an increased mortgage? failure to pay rent puts their security on the property at risk and a few extra shifts and overtime in the short-term isn't likely to outweigh the impact of the debt to the landlord.

If the rent isn't paid why would the HA agree to staircase anyway?

If your friend can get extra income in the short term then pay off the rent that is owed and then see if staircasing is possible/affordable.

The idea is to reduce the rent to what she can afford and the bank buying a further share of the property by increasing the length of the mortgage but keeping the payments the same

I can't see the bank will be that keen, currently your friend is a borrower who is behind on payments  - and so must be at a higher risk of defaulting on their mortgage.