Mortgage shortfall

nelly_2

pokemon151 wrote: »

It was a first time home option that I bought for £61000.00
The outstanding amount is £59000 less £2900 early penalty fees.
It is on the market for £56000 just to rid myself of it so the shortfall is £2900 plus £2900 early penalty, providing it sell for that amount.
Plus there is still all the legal fees and commision once it sells.

Thats funny I keep reading house prices only go up!

How come its not gone up 10% a year?

mpsavuk

This smells of a windup to me?

Surely no one can be that naive about property "Investment"?

tawse57

Have a look at www.houseweb.co.uk - sell it yourself privately and avoid estate agents commission if you can get out of your agency contract. Might save yourself some money.

pokemon151

Sorry I failed to admit I took a 127% mortgage. Cost of flat £47500 and difference to pay off debt at the time

Trollfever

Is this a Lie-to-Buy mortgage?

SquatNow

You have 2 choices:

A) Splash out £500 and declare yourself bankrupt - the house will be repossessed and you will be forced to sell everything of value you own.
Try and carry on, have a bad month, miss a mortgage payment, have the house reposessed, PRAY they declare you bankrupt and sell everything you own.

pokemon151

SquatNow, you failed to tell me the 3rd. Keep on going as Im keeping my head above water now. Work overtime and bring in extra income. lol

SquatNow

pokemon151 wrote: »

SquatNow, you failed to tell me the 3rd. Keep on going as Im keeping my head above water now. Work overtime and bring in extra income. lol

That was option B.

That's the problem with life, something always goes wrong. The car needs repairs. The heating breaks. Your tennant moves out and it takes you a couple of months to find aother. Interest rates go up. Your fixed rate deal ends. Your council tax, gas, electric, water and food bills rise.

Bosworth

You probably don't want to hear this, but you are in trouble.

House prices are falling and that pace of fall is likely to get worse over the next 12 months. You need to be honest with yourself about how much money you can sensibly save each month to:
- cover the shortfall with the rent
- pay towards the current negative equity
- pay towards the increasing amounts of negative equity that will occur each month

When does the early repayment period expire? Waiting for that would save you £2,900.

When can you remove the tenant? You and your girlfriend could move back into your flat and see hers / stop renting it to save money.

Other than that, you're looking at bankruptcy.

Interested in why you took out this investment in the first place and borrowed 125% mortgage? Did you not think that house prices could fall?

Genuine best wishes - let us know how you get on.

PasturesNew

Take on a 2nd job, save ALL that money and use that to settle the difference.

Somehow, you will need the difference to pay off the mortgage in full in order to complete/sell it.