Advice on getting a secured loan

Ian99

First post (on any forum) so apologies in advance for any 'oddities' in the post but I really could do with some advice.

Situation,
Debts 90k+ (credit cards etc),
Mortgage 200k - including Mortgage Arrears 15k, (monthly mortgage 1800)

Income (joint) now averaging just 1000 month.

Property is on the market at 470k. (Started at 520k last summer, sale agreed in October for 490k - then chain fell through).

So we have 240k equity in property (if we sell at a reduced price of 450k).

Repossession hearing is tomorrow and I am hoping we can get more time to sell.

With all the equity we have in the property, as a backup - I have been looking for a secured loan to repay the mortgage arrears (plus extra to pay the mortgage and the loan) for 6 months to give us time to sell.

I have been trying to check rates on the secured loan, but have been told that no lender will lend on a property that is already on the market, and that I would have to take it off the market first, take out the loan and then put it back on the market.

Has anybody experience of getting a secure loan on a property that is for sale?

Thanks for reading - any advice will be appreciated.

Ian

poppyg_2

just bumping for you ian

NikkiP_2

how can you expect to get a secured loan when you cant afford it ?
Income of £1k per month.
Advice, sell the house, repay mortgage and debts and rent.
Put left over cash in bank £150k and change your spending habits.
If you dont change habits you will soon eat into your cash.

Ian99

We are selling the house, will pay off the mortgage, debts and plan to rent.
What we want is time to sell the house.
Should getting a loan secured on the Equity be a problem?

fatbelly

Ian99 wrote: »

Repossession hearing is tomorrow and I am hoping we can get more time to sell.

The lender's agent will be looking for a 28-day possession order.

If you had a buyer, you could ask for an adjournment

If you could afford to pay the contractual monthly instalment plus something towards the arrears, you could ask for a suspended possession order.

You do have equity so the judge may be persuaded to give you longer - you could ask for 56 days.

Getting a loan when you can't afford to pay the instalments is going to be difficult. You need a buyer fast and somewhere to move into within the next three months whether or not a buyer turns up

delboypass

Lower your starting price..?? Obviously not priced to sell.

We are heading further into a recession and house price crash is starting to accelerate as even the banks are going bust so I wouldnt expect a cheap loan anytime soon...

I would concentrate on getting rid of the house asap or it will be like holding a heavy stone whilst swimming...it might soon not cover your debts or give you a nest egg...

A problem will be buyers also getting credit heading into the recession and has already started...further in the more LTV buyer will have to stump up..

If they repossess they might sell it for 50% so best to get out

If you get another loan...you cant already afford what you have..

Morgage repayment 1800...monthly income 1000

Ill let you work it out...

SELL!!!!

Bismarck

Kind of agree with delboypass but I'm afraid you'll have to take the hit before it hits you anyway. Any buyer will see that you're desperate to sell and I'd batter you down a long way in a negotiation. You're not really in a position to do much else now - other than offer at a price that a buyer will get a good deal - enough to cover them for the turbulence that could be heading their way and the risk they're taking on.

How many months' arrears are we talking - £15K looks like about 7 but I don't know what kind of charges they've been hitting you with.

I do wish you all the best though.

in2deep_2

Forgive my stupid question but how did you end up with a 200k mortgage on an annual income of just 12k.

NikkiP_2

you just have to be honest with the court and hope he is in a good mood.
There are companies that will buy your home and rent back but likely to be at way below what you are priced at. Would be worth sopeaking to them and then you could at least tell the judge that you have a prospective buyer.
best of luck

Ian99

Thanks for the response it has been much appreciated.
'in2deep' - certainly not a stupid question - 5 years ago I earned 80k (before I took out the mortgage) selling and supporting computer software. There is a 2-3 year cycle and I had one 'complete flop'. I have a new product 'almost' ready (2+years now in development) but it won't have any effect on income for another few months - too late.
This forum is amazing - I am so glad I have found somewhere to 'talk'/'ramble' (even via keyboard).