Advice re Sell and Rent back your home.....

mum2one

hi
your doing really well trying to sort it out for your parents, maybe in a way, ur father sounds old school. where he should be the breadwinner, the decision maker and obviously with whats happened to an extent it may be stuborness or embarresment to ask for help.

What your father or your mum (if its in joint names), is speak to the company concerned and give permission for you to be told the facts, it could be something as simple as your father is a pround man, and doesnt like to accept help.

From my understanding re court dates, if the arrears can be sorted out b4 hand, the court case can be stopped, I appriciate you dont have much time, but if you can get them to accept the 4k, it buys you some time to help them get it sorted.

Again, (not being rude), your dads age, Im guessing that they havent got long left on their mortgage, and even if the next yr worst case - they have to live on Tesco value baked beans, b a sacrifise worth takeing,. x

chez000

willing2learn wrote: »

SilverCar

thanks again for your time!

I've just told my father what you have said and he is unsure that at this late stage anything can be overturned.

I guess i'm wondering....what do they do, write to the judge and ask for another hearing? I am so sorry i am souding so naive about all of this!

have they allready had a possession hearing and had a warrant of possesion granted against them?

Did they attend the hearing?

If they havent yet had the possesion hearing then they definitley have to attend this and take with them details of their income expenditure i,e a SOA becuase if they can show that they have an amount that they can use to pay off the arrears whilst maintaining the mortgage payment aswell then they can ask the judge to have the possesion order suspended.

They could also ask for the order to postponed or stayed until the happening of a specific event, e.g they could get 6 months or so in which to sell the property (best not to a rent back company).

If an outright possession order has allready been made you can apply to suspend it, you need court form n244and on it you need to tick the box to suspend a warrent and request a hearing, attach a SOA , and make an offer of payment that you can afford to pay off the arrears.

Making the application to court costs £35.

It is possible to use the remaining term of the mortgage to pay off arrears, so if the mortgage has 5 years left to run then you can pay the arrears off over 5 years.

Your father really should speak to citizens advice, ideally in person as they can help with this
look here to find nearest one http://www.citizensadvice.org.uk/index/getadvice.htm#searchbox.


Alterativley shelter would be helpful, or another free advice service.

hope the above is helpful feel free to pm me if anything is unclear

willing2learn_3

Thanks Chez

That's worth knowing. However i've told my father and he said it's not worth trying to suspend the posession order because it would just be prolonging the problem. The problem is that the repayments are just too high and even if they are brought down to an affordable level they are then going to take forever to pay off..........he said they will be in negative equity, because they will be paying 320,000 for a house that's worth 210,000 and at their age they don't think they'd ever pay if off.

I asked him what about suspending the order to buy himself time to try and sell the property but he said then he's got all the hassle of trying to find somewhere else to live.....and with a bad credit rating (which he has because of this problem - a loan taken out against the house to help him consolidate other debts, themselves having affected his credit rating).

He thinks for this reason the sell and rent back scheme is the only option.

I really appreciate all you guys talking to me on this one. My parents don't talk to me much and i really hate to think of them so unhappy.

Jenna

Hey there,

So sorry to read of you and your parents situation. Your Dad sounds a lot like my OH's Dad - a really decent guy who is possibly a touch too trusting for some of the nasty scams in this world - please STAY AWAY from sell and rent back schemes. Amongst the many horror stories out there, they are not regulated by the FSA, so if it all goes wrong, you have NOWHERE to turn.

If they cannot afford the re-payments can he contact the local Housing Association (there are some good part-buy part-rent schemes out there) or their local CAB? They will be able to advise better.

Even if they have to move, they should sell the property themselves - then they can use their equity to buy somewhere smaller outright. But if they let someone else sell it then they could lose anywhere up to 40% of the property's value. Buying outright would also solve the credit rating issue.

And a note for your Dad - it IS worth trying to suspend the possession order, because it buys you more time (which you need to research this and seek advice), and this will give you more choices.

If you lose 40% of the property's value when it's sold via the rent-back scheme, and then in 6 months - 1 year they sell the house from underneath your feet, you may not be able to afford to buy an alternative house. And it will be a lot more "hassle" to try and find another house under those circumstances than it will be on your own terms, believe me!

If you can, make a CAB appointment and go and talk to an advisor face-to-face. They will be able to give you some specialised help on what's available and what can be done.

Good luck!

chez000

That's worth knowing. However i've told my father and he said it's not worth trying to suspend the posession order because it would just be prolonging the problem. The problem is that the repayments are just too high and even if they are brought down to an affordable level they are then going to take forever to pay off..........he said they will be in negative equity, because they will be paying 320,000 for a house that's worth 210,000 and at their age they don't think they'd ever pay if off.

I asked him what about suspending the order to buy himself time to try and sell the property but he said then he's got all the hassle of trying to find somewhere else to live.....and with a bad credit rating (which he has because of this problem - a loan taken out against the house to help him consolidate other debts, themselves having affected his credit rating).

He thinks for this reason the sell and rent back scheme is the only option.

I really appreciate all you guys talking to me on this one. My parents don't talk to me much and i really hate to think of them so unhappy.[/quote]


Your Dad seems fairly resigned to the sell and rent back option, I can see why it has its attractions as an option.

Its less hassle and its dealt with quicker
Also (and this may be a reason he favours particluary stongly) for sale signs wont go up, know one will know that he has had to sell the house, so wont ask why he has sold it - so he wont have to explain why.

However as a last ditch attempt at dissuading him form this course of action, if the many reason allready given by the good people on this board havent convinced him,

Is ...to look at the rental agreement the company give him before he signs anything as this should state the type of tenancy he will have either an assured or short term assured and then have him read up on his rights regarding staying in the property - which will probably be at most 6 months after which time the company that bought his house can serve him with a section 21 notice that requires him to leave the property, meaning that he will have to find alternative accomodation.

I couldnt absolutley state that any company that bought the house would force him out after 6 months so that they could sell the property but I have never heard of a sell and rent back scheme that favoured anybody except the company but I have heard of many that have been only to the benefit of a sell/rent back company.

I appreciate that persuading fathers to change their mind is difficult in any circumstance but reaslly think that on this occasion it would be in his best interests

willing2learn_3

Thanks everyone

I will check in tomorrow.

I really do appreciate you guys giving this your time. I have persuaded my father to at least think things through a little more and to request the form from the court re requesting suspension of the order.

He has said he will give this more thought over the weekend.

I'm sorry that he doesn't talk on here himself and engage with you, he really isn't used to the internet and discussion forums especially he isn't used to. However i know he appreciates your responses and i have printed out every one for him to read.

thanks again

silvercar

One option would be to borrow the £4,000 from the family and ive them a charging order on the house. This would mean that they would get the money back from the sale fo the house automatically (unless the mortgage amount was greater than the sale price). He could use the money to stop the repossession and give himself a few months to sell the house. This would mean that he can keep all the equity for himself rather than give some to the sell-rent-back company.

willing2learn_3

SilverCar

thankyou. Well my mother called the loan company and asked if they would still reposess if they paid off the arrears, they said no. So mum is hopoing still to borrow that money off family.

They are also going to see if the loan company that offered the remortgage would give them a smaller loan, so that they could pay off the company that is threatening to reposess them.

The thing is the house is worth £200,000, the mortgage they have left to pay is £50,000. The problem is the money that they owe the loan company.

I have also told mum to phone up and request the form from the court first thing in the morning, to see if they can suspend the posession order. Also to dig out the terms and conditions of the loan that they had previously.

Thanks again everyone. I will have a few days off work soon and will give this more attention than i can at the moment, as my computer is not at my home i haven't been able to repsond to everyone's post.

penguin83

Hi willing - if you have got a printer you can print the necessary from N244 off from here - saves waiting for the post! x x

willing2learn_3

Cheers Penguin! :-)