please help! worried sick!

bintie22

Hi Wot A Life

Also wanted to suggest you go over to the Debt Free Wannabe Board, unfortunately there are lots of people over there in your boat - so you're not alone. They have oodle of constructive advice of how and where to go for support etc.

B x

PasturesNew

Debt Free Wannabe Board: http://forums.moneysavingexpert.com/forumdisplay.html?f=76

Loads of people over there owing £20-200,000 and feeling they're going under.

Lives saved. Souls calmed. Debts squashed. Support with group hugs

macaque_2

wot_a_life wrote: »

Well, this is the situation so far............

We have just calculated all of our debts and we are about 40k in debt to unsecured debts.

We have a mortgage to which we owe £169,000, we have had no secure debt on the property but we do have a charging order on it for £2,100.

The mortgage repayments are interest only at £1070 a month plus a further £105 for arrears of £2000.

We have had the house valued at £199,950 but we are not going to get that for it in todays situation and we have been offered £184,000 for a quick sale from one of those avoid repossesion companies.

What shall we do? we are thinking about selling to this company and going into private rented because we just can't see a way forward. We can't afford to pay the mortgage, it's just too high!!

If we went bankrupt, do we have enough equity in the property for the OR to sell it from under us?

The answer to your question may lie in the title of your thread. Being worried sick is no way to live. If cashing in your equity today makes your life more tolerable, that has to be a good decision.

Before you do anything precipitate however you need third party advice. People in your frame of mind often cut corners and make bad decisions. Other people on this thread have flagged up some of the issues. Has your house been valued correctly? Are you paying the right level of interest on your debts? Are you clear about all the alternative options available to you?

Good luck!

TBeckett100

how can you earn 4k a month and still have 40k debt?

Save4ArainyDay

Firstly NO Cash Buyer should charge you a penny - I know of none that charge for Valuation (see Silvercar).

If they are offering £184K my guess is that it is worth more thanyou realise - check latest sales in your street on www.ourproperty.co.uk

Or is your house on a big corner plot - it may have planning potential for extension or a new build.

If it is worth £199K and they want to give you £184K snatch theirs hands off is my advice. You can start again - we all learn by our mistakes.

Good luck with whatever you decide.

TighterThanTwoCoatsOfPain

wot_a_life wrote: »

My hubby by the way wants to go up to the mortgage lenders and hand over the keys and just start fresh.

worth mentioning that it doesnt quite work like this.... say you struggle on for another year, then get 'repo'd'... house prices down even more, lender wants quick sale and it goes for £149k... they will still hound you for the £20k balance.

Not trying to put a downer on it, but unfortunately "handing them the keys" isnt that straight forward....

If it is worth £199K and they want to give you £184K snatch theirs hands off is my advice. You can start again - we all learn by our mistakes..

Almost tempted to agree..

epz_2

TBeckett100 wrote: »

how can you earn 4k a month and still have 40k debt?

i doubt they earn that much every month and to be fair anyone working in the building sector isnt going to be seeing as much business.

on a financial perspective there is little advantage to holding onto a house thats likely costing more than rent (1) and would pay off some of your debt.

i would be VERY wary of the buy fast companies, as stated they are looking to make a profit and i cant see them paying 92% to a motivated seller when the markets dropping.




(1) especially these days with falling prices

poppy10_2

wot_a_life wrote: »

Hubby - self employed builder/plasterer can earn in the region of £4k a month, WHEN he can find work

When he is out of work, we claim tax credits

Sigh. Has hubby ever thought about saving some cash for a rainy day during the months he is earning £4k?

mitchaa

£4000pm in hand is around a £71000pa salary if on PAYE. Some wage for a plasterer/builder.

He is SE though so the £4000 is probably his top line of which deductions for expenses tax/accountant etc need to be taken out. (May be wrong, but i guess this is the case)

Thats the risk you take with SE work, not always there.

Snooze

Save4ArainyDay wrote: »

If it is worth £199K and they want to give you £184K snatch theirs hands off is my advice. You can start again - we all learn by our mistakes.

Good luck with whatever you decide.

I agree. That's a real deal if true.

SquatNow wrote:

Please also note that there is not really any "unsecured debt" anymore as the laws were changed in April 2006 making it a quick and easy matter for unsecured debt to be turned into secured debt. (takes about 5 minutes)

Bismarck wrote:

This goes against what a lot of others have said elsewhere and against my understanding of priority payments...

I've just done some research into this and from what I can see the laws weren't actually changed at all. The process is still exactly the same as it's been for the past 100 years or so (the creditor applying for an initial charging order, which is usually granted on the spot and then the court hearing for the final charging order) but the difference nowadays is that judges are handing out the final charging orders like confetti whereas they didn't before.

The bottom line is that once a charging order has been approved then you won't be able to sell your house as the creditor puts a caution against your property on the Land Registry to stop you from doing so.

Rob