Parents reposession :(

HelpForParents

OK I need some advice and help to give to my parnets.

Lets say I did not see this coming, they kept it very much to their chest until it is seamingly too late.

My parents are 54 and 51. House is valued at £250,000+ but unknown to me there is next to no equity in the property, outstanding mortgage of £219,000 with an early repayment charge of approx £13,000
Now I am not interested in inheritance etc I just need advice so they can live without worry.
I found out they are somehow paying £1,800 a month for their mortgage. They have some other debts too. Their combined income is approximately £3,500 which is leaving them with no money after all other expenditure, they basically work to pay debts with £0 left over usualy -£'s.
I am still trying to get to grips with what they have done but it is so hard, especially when parents are embarrased by what has happend.

So what I need help with, a repossesion order has been submitted against my parents.
Their house is up for sale and due to some work being done and it valued at £250k it is up at £225k for a quick sale. That would cover the £219; mortgage but not early repayment fee. Is it possible that mortgage company can write off part of the debt maybe the fee to avoid going through repossesion?
Surely some agreement can be made as they cannot keep up repayments.

I have read on internet if reposession goes through then any shortfall parents will be liable for, is this true?

I don't know what to advise them, I never saw this coming.

I am the complete opposite, good comfortable mortgage, savings, pensions scheme and a lot of equity in my property. I am comfortable and not far from my limit so I cannot free up any money to help my parents.

Any advice, pointers, etc is very much appreciated.

Thanks!!!

SouthCoast

a repossesion order has been submitted against my parents.

They need urgent, independent, professional advice.

http://www.adviceguide.org.uk/index/life/debt/mortgage_arrears.htm

silvercar

As well as the capital and early repayment charges they have also got arrears, as otherwise the lender wouldn't be repossessing.

I doubt the lender are going to agree to write off anything at this stage.
Voluntary possession may be something to consider.

Have your parents thought about where they are going to live? With mortgage arrears chances are they have a poor credit rating, so may need a hefty deposit for a rental property.

poppy10_2

It would be much better for them to cut the price themselves and sell quickly, than to let it be repossessed.