Mortgage going UP, Have to Sell

clutton_2

hello reidy - i must agree in spades with your wife not seeing the reality of your situation. i have seen this scenario several times with friends who have been repossessed - you are living beyond your means and things will only get worse if you do not sell and sell quickly. Take a stand - she will thank you for it in the long run.

Being repossessed means no credit of ANY sort - no mobile phone contract, no store cards, no credit cards, no bank loans - no nuffink - occasinally even no bank account.

This degree of stress ruins marriages, causes depression and mental breakdowns - it is a dreadful dreadful thing to go thru and will take you 5-6 years to get over it financially.

For goodness sakes - listen to the advice here and sell as soon as you possibly can - you will at least end up with some money in the bank.

your wife is coming from a place of fear - that is why she is responding as she is - she is too scared to face up to the reality of things - you must do that for her.

good luck

real1314

reidy100 wrote: »

Hi Real, Mortgagage is £175000, house is worth £330k in good condition. (which it isnt) monthly payment is currently £895 a month going up to £1150
Similar places to rent are £1200 to £1500 a month which in the short term I can accept, got a pension kicking in in 2 1/2 yrs of 13000 a year and both of us have single elderly parents.


Can you redo the figures from what ive presented?? Ta

Ok, rent needs to be 6% of house price as a minimum.

£200k sale (you get £25k) = £1000 pcm rent
£220k sale (you get £45k) = £1100 pcm rent
£240k sale (you get £65k) = £1200 pcm rent

But at £200k sale, the buyer could turn a £50k profit quite easily. And you can't afford the rent above that level - you can't afford £1150 in mortgage.

So the only way for sell2rent to work is of you lose £75k in equity, and you WILL be out after 6 months so they can get £50k profit. Nice earner really £200k to £250k in 6 months. That's 50% per annum. Would you turn that down?

2 options left - tighten your belts or sell

If you sell, you could rent somewhere you can afford or you could buy somewhere a lot cheaper.

smilingaway

been in the house stuff, just glad im in rented accom,very nice gardens an stuff, much better for ya, not as much stress, forget that housing market for time being....

fc123

reidy100 wrote: »

So much to take in, have to go to work (nights) I shall digest and pop back tomorrow, Ta once again for the advice CYA tomorrow

Had any more thoughts?
Try DFW board just one post?