repposession imminent!!

don66

My fil is on the brink of having his house repossesed due to non payment 3 months by a court order. the house is worth 250,000 and it has been remortgaged up to 235,000. he has been living there for over 30 years and has had to borrow on it several times due to bad trade in businesses. he is thinking about just walking out even though he doesnt want to. myself and his daughter are currently selling our house and will have 30- 35,000 equity, he has asked us to buy the house but we cannot afford it at the current price but could afford approx 200,000. he is nearly 70 years old and health is diminishing and says it would be such a shame to lose the house after all this time when he doesnt have 2 long left (his words not mine) and then the house would be paid off.

what i am basically asking is if the house was to be reposessed would we b able to get the house at a cut price deal as we will know all the inside info or is it a VERY long shot? or could we negotiate with the mortgage company

peb

The lender is under a duty to get the best possible price - often this means by auction; they will not put the property into an auction until it is vacant.

For your FiL to stay in the property you could privately purchase it from him for sufficient for him to repay the outstanding finance - you won't be able to cut a deal for less though - the lender will see the equity and want to sell.

Not sure if this answers your question.

rog2

Hi don - as there is a Court Order, it could be very difficult to negociate with the mortgage company - but definitely not impossible, given the current trend in house prices and the static market.
I understand your fil's affection towards the house, having almost lost my own 'home' through bankruptcy.
It may be worth having a chat with National Debtline - 0808 808 4000, CCCS - 0800 138 1111 or your local CAB, to see what options are open to both you and your father-in-law.
Perhaps you could, also, post this on the mortgage board - it's read by quite a few 'mortgage professionals', who may be able to suggest how you could 'stretch' your own borrowing powers a bit.

whowants2brich

Alternative suggestion: If you have enough money, "lend" it to him on the basis that he'll be able to pay off the mortgage arrears and sort this mess out, ASAP. You could take a short-term loan out in order to have the money immediately so you can pay the mortgage, and then when you have the equity released in your own property, you can pay back the loan.

I don't know what the inheritance situation may be, but if your FIL were to pass away, would you and your partner get a share of the property? If so, I don't know if the "loan" would count against his estate?

Alternative suggestion is that if the house is valued at circa £250k, then you could buy a 10% share in the property, if you wanted to make it official, you could then help out with the mortgage payments to make it easier for your FIL... Or you could pay off the mortgage company, sell up ASAP, pocket the equity in the FIL's property, and buy somewhere smaller. Seems to me that he might not even need such a big property - especially if he can't afford it...

Food for thought, but if you can find a way out of handing the keys to the mortgage company then I think you should. After all, where would he live if he does hand over the property?

Good luck, I hope things go ok - let us know what you decide to do...

Whowants2bRich