Not sure how to start this , but here goes .

MovingOn64

We have an interest only mortgage with 10 years left on it , the mortgage was sold to Intrum Mortgages with their rate of 9.05% , we are claiming benefits because I had cancer and i have other health issues , so we get support for mortgage interest .
The monthly payment is too much for us to manage, we also found huge holes in the floors and now the damp on the walls are really bad. I've had the occupational therapist round to assess my needs and she says the house is unhealthy for me as it is. We had the council grant lady here last week and the work that needs doing is too much and a grant wouldn't cover it .
It's suggested that we sell the house and we are being referred to the homeless team .
I hate this place so much now and my anxiety is sky high I am not a well woman , we have 3 valuations coming up in the next 3 weeks, .
There is a house for sale 2 doors from us and its been on the market for 9 months , I cannot live in this that long .
I was wondering if a quick sale company would be suitable , we need to clear mortgage and the arrears . Or hand back the keys and just deal with whatever happens after the sale .
It's making me ill .
Any advice appreciated .

DullGreyGuy

You will simply get less money for it via those types. It will be a relatively short process but it will be a stressful short process as most of them game it well and will keep dropping the price just before exchange etc. 

Putting it into a traditional auction will take longer but you know what it's going to sell for when the hammer falls. 

housebuyer143

Second auction it off with the reserve set at the total cost of the mortgage and arrears.

Section62

Also worth asking the council housing department whether they are looking to buy properties in the area.

eddddy

MovingOn64 said:

It's suggested that we sell the house and we are being referred to the homeless team .

There is a house for sale 2 doors from us and its been on the market for 9 months , I cannot live in this that long .

If that house has been on the market for 9 months, its almost certainly priced too high.


Perhaps the most important thing is to follow the instructions given to you by the homeless team and/or only do things with their knowledge and clear agreement.

In general, if you sell your own home, the council homeless team would consider you to be intentionally homeless - and might offer less help. So before selling, you need to make sure that everyone agrees that you are not making yourself intentionally homeless.

And given your living conditions, you need to find out...

• Would the council rehouse you before your property is sold? (Because your property is unsuitable.)
• Or would the council insist that your property is sold (sale completed), before they would rehouse you?

Unless you have already been rehoused by the council, or you have a cast-iron date for being rehoused by the council - I think I would avoid an Auction.

With an Auction, you will almost certainly have to move out 4 weeks after the auction date - even if the council hasn't found you a suitable place to live.


With a 'traditional sale' through an estate agent, your solicitor can hold-up the sale (exchange of contracts), if everything isn't 100% agreed with the council and/or with your mortgage lender - e.g. if there is a shortfall.



Maybe go with an estate agent who sells a lot of 'Development Properties'. Often, they will do what's called 'an informal tender'...

• The estate agent advertises the property for, say, 14 days with a low guide price, asking for offers

• At the end of the 14 days, you look at all the offers and decide which one to accept (or you can reject all of them, if you want.)

• If the council is slow or incompetent at rehousing you, you can keep delaying the sale until the council is ready.

In simple terms, if it is priced cheaply enough, somebody will buy it.

FreeBear

DullGreyGuy said: Putting it into a traditional auction will take longer but you know what it's going to sell for when the hammer falls. 

And don't get suckered in to using a Modern Method of Auction. Most buyers avoid using a MMoA and the houses tend to lurk unsold for a very long time. The only people that benefit is the estate agent.

Silvertabby

Is there enough equity in the house to cover both the outstanding capital amount and the SMI loan?  

Bookworm225

by the time you have paid off the existing mortgage will you have any money left to buy a replacement property with anyway?
will your benefit claim carry over and apply to a new property?

MovingOn64

eddddy said:

MovingOn64 said:

It's suggested that we sell the house and we are being referred to the homeless team .

There is a house for sale 2 doors from us and its been on the market for 9 months , I cannot live in this that long .

If that house has been on the market for 9 months, its almost certainly priced too high.


Perhaps the most important thing is to follow the instructions given to you by the homeless team and/or only do things with their knowledge and clear agreement.

In general, if you sell your own home, the council homeless team would consider you to be intentionally homeless - and might offer less help. So before selling, you need to make sure that everyone agrees that you are not making yourself intentionally homeless.

And given your living conditions, you need to find out...

• Would the council rehouse you before your property is sold? (Because your property is unsuitable.)
• Or would the council insist that your property is sold (sale completed), before they would rehouse you?

Unless you have already been rehoused by the council, or you have a cast-iron date for being rehoused by the council - I think I would avoid an Auction.

With an Auction, you will almost certainly have to move out 4 weeks after the auction date - even if the council hasn't found you a suitable place to live.


With a 'traditional sale' through an estate agent, your solicitor can hold-up the sale (exchange of contracts), if everything isn't 100% agreed with the council and/or with your mortgage lender - e.g. if there is a shortfall.



Maybe go with an estate agent who sells a lot of 'Development Properties'. Often, they will do what's called 'an informal tender'...

• The estate agent advertises the property for, say, 14 days with a low guide price, asking for offers

• At the end of the 14 days, you look at all the offers and decide which one to accept (or you can reject all of them, if you want.)

• If the council is slow or incompetent at rehousing you, you can keep delaying the sale until the council is ready.

In simple terms, if it is priced cheaply enough, somebody will buy it.

Hi, thank you for your reply . I have occupational therapist report that says i need to move because the house is dangerous and unhealthy , I am still receiving after care for endometrial cancer for the next three years , I have other health issues and I am nearly deaf too . This is all on the OT report . I've been referred to the 'homeless team' by the grant department because they cannot offer enough to repair the house . I've had a reply from the council for housing and they accept I need a two bed place as my carer needs another bedroom I use a cpap machine and it keeps him awake. I haven't had an appointment date for the homeless team as yet , but I did get an email from the council asking about the equity in the house after sale . It would be roughly 8k, but might be lower as we need to pay back support for mortgage interest and also mortgage arrears ,so hoping we won't be classed as intentionally making ourselves homeless as it is all being recommended by the OT and grant department . We are trying everything we can , but the house is now unhealthy . We cannot keep living here .

MovingOn64

Silvertabby said:

Is there enough equity in the house to cover both the outstanding capital amount and the SMI loan?  

Hi, there would be but we think we would have 8k left , and we would need to replace most of the furnature as it damp damaged this is how bad it is . 

Herzlos

MovingOn64 said:
I was wondering if a quick sale company would be suitable , we need to clear mortgage and the arrears . Or hand back the keys and just deal with whatever happens after the sale .

The quick sale companies work by offering you a huge chunk off the value and trying to find a buyer wanting to pay more than that. So they may offer you 70% of market and try to sell for 80%, but they won't pay you until they have a buyer. Often they'll come back and knock the price down further, because only desperate sellers use them.

So you may as well try and sell through a local estate agent at that 70% price, or whatever you need to clear the mortgage + costs, and cut out the middle man.


Is the house itself unsuitable or do you just need the repairs done? Can you remortgage with a better bank to get the money to cover the work?