please help

0151ginny1977

me and my wife recently had twins and now cant afford to pay our mortgage and secured loan. we cant sell because there isnt enough money in the property and renting it out wouldnt cover our costs. What would happen if we stopped paying and just moved out as we see this as our only option. we really need and any advice will be very appreciated thanks

dunstonh

What would happen if we stopped paying and just moved out as we see this as our only option.

You are still liable for the debt and the lender will come after you. You will blacken your credit history for a long time. Many landlords will credit score you now as well.

i suggest you post in the debt free wannabe section. There are some very good people in there who can give advice and support to see you through this.

homer_j_3

Are you paying your mortgage on Capital and Interest or Interest Only - if C&I then look to swap to IO.

If IO already, then you may want to look at doing the following:

Get settlement figures for both mortgage and secured loan.

Get as many EA valuations asking for a price to sell within 3/4 months tops - average this price out.

Work out from these figures to see whether or not you can clear the mortgage and pay the legals and EA fees. If you can - work what surplus you will have left and then put a proposition forward to the secured loan company saying that you will pay then whatever amount you receive over X amount from the sale and that you would like them to consider putting the loan on an unsecured basis.

This will hopefully allow you to sell your home, fulfil your responsibilities and give your new family a better start than a repossession hanging over your heads?

0151ginny1977

i am on interest only but have a £5000 early settlement fee as i am only 14 months into a 3 year deal. i have asked the mortgage co. to help me they but just said no

homer_j_3

They will say no.

How much is your mortgage inc the 5k?
How much is the secured loan inc any penalties?

How much is your house worth based on a quick sale?

0151ginny1977

my mortgage is 86000 plus 5000 fee and my loan is 15300 settlement and the house was valued at 98000 to 105000

homer_j_3

106300 in debts.

Write a letter to the secured loan company explaining that you are currently struggling financially. If you can put in a statement of affairs (ask on the debt free wannabe board how to do this) then this will help the company understand your prediciment.

Ask the EA that you felt that would be best to market your home and then enclose a copy of the sales particulars with this letter.

In the letter, you need to state:

- You are financially struggling due to additions to the family
- You have enclosed a statement of affairs (basically details of your income and expenditure)
- You have put the house on the market because you understand that the property is no longer affordable to you and enclose sales particulars.
- Put in a copy of the settlement figure of your mortage company and then state that you will have a further costs for solicitors and Estate agent which will cost approx £ x amount.
- State that you will be looking to repay the remaining amount on top of this and if the will provide permission to the sale then you would be happy to honour the remaining debt as an unsecured loan.

If you are not comfortable with doing this, then I suggest you seek assistance from Shelter or CAB.

0151ginny1977

It all was all set up by a mortgage brokers called abacus on hamilton square on merseyside. and we were screwed over big time. my mortgage is I/O at 6.89% and the loan was set up by them aswell with welcome finance and the loan is at 18.9% yes 18.9%

homer_j_3

I am sorry that you feel that you have been stuffed.

Clearly, I was not present when this happened but what I would say is that its not worth wasting your energy on getting wound up by this- use that energy on getting your finances sorted for your family.

0151ginny1977

Thanks very much homer_j your advice is top class cheers

MortgageMamma

Hi Ginny

Get in touch with your secured loan company and see if they can tell you what the early repayment charges are on the secured loan

Have you had your house assessed for a rental valuation? That might be a good idea too

Do you have a relative who can help you out financially in the short to medium term? could you not rent out the house and then live with a relative for free until you get back on your feet?

I know a lot of questions, just trying to think of a way around this for you. Are you short of money because one of you is at home caring for the babies?

I know this sounds harsh but if you think you are going to run into trouble it would be a good idea to get on the council waiting list and register with some housing associations straight away - it takes time for housing to be allocated and you can't afford to be leaving it until the last minute

MM