Help or advice needed please

eboy1975

I wonder if anybody has any advice for me. My situation has been caused by a number of factors, rising property caused my risk averse appetite to wain in 2000 (before that we had no credit whatsoever, not even an overdraft) when we bought our home and I decided that I would play the stock market with the equity in our home - result: stock market won! Didn't learn lesson and enjoyed the fact that borrowing money was so easy until last summer (nice cars, holidays etc) and have found ourselves in a situation where (at entirely our own doing through sheer stupidity and greediness), although our combined monthly income is approx 3200, we will soon be in a position where most, if not all, of our income is going to be going out of the front door. I will list our liabilities;

NR mtg - 158k o/s & fixed rate going up in sept to 950 pm
property probably worth 150kish now

First plus loan also on this property for 38k - 420 pm

2nd NR mtg - 72k o/s - BTL property purchased Apr 06 for £77k
Currently on market after being self sufficient for 2 yrs for 89,950 - likely to get 85k (hopefully) - covering mtg payment of 450 pm until sold

3rd NR mtg - 62k o/s - property purchased from relative in sept 06
Not looking to sell but worth 90-95k - 320 pm

NR unsec loan 7.5k - 4 yrs to run - 200 pm

C/cards - total balances 8k - have been paying approx £1k pm to reduce balances

Perhaps unlike most, I know that we have been totally reckless but I am concerned that my relative's property (we own it but refer to it as this) may have to be sold to repay all of the negative equity on our own residential property.

We are hoping to repay the unsec loan & card balances from the sale of the BTL property but have spoken to NR & First Plus about selling the residential with big neg equity however, First Plus have said that unless we can repay 60% of their loan they can prevent the property being sold. We have explained to them that we DO want to pay and have asked if we could transfer the debt to the relatives property however, they won't allow this unless we reside there (& it is 350 miles away!)

Massively stuck - would appreciate any comments (except you are a !!!! - because I know this already).

thanks in anticipation

tigerfeet2006

Yours is an incredibly complicated problem and looking at it I have a feeling BR will not be a solution for you if you don't want to loose the properties. But as I said last night you really do need to seek professional help and ring one of the debt charities asap. All numbers and links are in my signature.

Hopefully someone with more experiance on housing will be along soon to offer advice.

JPS29

Hi There,

Tigerfeet has asked me to have a look at this as Im in a similar position.

(:hello: Hi Tigerfeet)

I too am in a similar position. I have:

Property A bought for £245k (main residence)
Property B buy to let, tenanted bought for £65k
Property C buy to let, tenanted, bought for £106 (complicated as its in my ltd co. name:mad: )

Your 2nd NR mortgage, that is on the market, how long has this been on sale for?? Please don't pin your hopes on this selling as in todays climate you could be waiting a while. I dont mean to sound pesimistic but I dont want you to pin all your hopes on this property selling alone.

Re the secured loan being transferred I think this is to do with the fact that as a BTL you can grant a tenancy of xxxx meaning that the tenant is safeguarded from being evicted. This is prob why they will insist you live there.

Can I ask what it is that you want to do/ I see that you have posted on the bankruptcy board, is it your intention to go BR??

If so then main res will almost certainly be safe (buy back BI for £1 plus fees)
NR 2, again the falling market will help you with this (ironic eh;) ) and should this not sell and you want to keep it you will be able to buy back YOUR SHARE of the BI (half the equity in the house if in joint names, 100% if in your sole name)

Property 3 (relatives) will more than likely be sold to realise the assetts in it (£30k plus) or you can agree again to buy out the BI but this is obv going to be expensive.

I would therefore say in this scenario (and just my opinion) that BR may not be the best answer for you. As Tiger says have you tried one of the debt charities. They will give you a pointer as to the best option for your individual circumstances. They are free, and completely impartial.

As for being a XXXX, don't worry about it mate. We are all here because we have been in a mess with our finances at some point, I blew a large amount of money too "speculating"

No one will judge you here, and those that do will be pounced upon from a very high height.

Please post back and let us know your intentions.

Bext wishes
ITBS

Merry_Gentry

Just wanted to say welcome :hello:, and it looks like you're already getting some excellent advice

eboy1975

Thanks Tiger, Merry & Inthebrownstuff (good username by the way).

2nd property has only gone on the market - it is definately not overpriced but as you correctly say, who knows when it will sell.

I did think that 1st Plus loan couldn't transferred to one of the BTL's because of their investment status. Whatever happens I would like to avoid selling the third property at all costs because mother in law resides in it (and sold it to us cheaply to provide some form of inheritance when she passes away and her husband was very ill so didn't want to be burdened with a mtg after he passed away - nov 07).

It isn't my intention to go BR as this seems the most extreme method but am struggling to find a solution because of the neg equity on the residential. Selling this doesn't bother me in the slightest but as stated, cannot find a solution to pay off deficit.

Spoke to CCCS and national debt helpline today but as I'm not in any sort of arrears at the moment they can't help me or offer any advice. So my only options at the moment is to seek an alternative route. I have spoken to my bank today (RBS) and am waiting for a call to discuss with someone (thinking that can borrow on a massive unsecured basis).

tigerfeet2006

It might be worth posting a comprehensive SOA on the DFW board and seeing if anyone canadvise on ways to maximising your income.

eboy1975

can you elaborate on SOA (?)

thanks

Merry_Gentry

Statement of Affairs - basically your income and expenditure for the month. Will see if I can find a link to show you what we mean....

Merry_Gentry

philnicandamy wrote: »

SOA (statement of affairs) its a list of your cash coming in & what you spend each month listed have a look here
http://forums.moneysavingexpert.com/showthread.html?t=806277

Here you go, nicked it from somewhere else!

eboy1975

Will do - thanks

JPS29

Hi Eboy.

What I meant aboout your house on the market wasn't that it may be overpriced, the more important thing is that as it is priced/or in the range of, first time buyers, they will find it extremely hard in todays climate getting a mortgage without a large deposit. banks are being more picky about the mortgages and FTB's don't normally have a great deal of money for a deposit, and will prob need a squeaky clean credit file.

CCCS have said they can't help you because you're in arrears. Would it be worth phoning back stating you are in arrears, say of 2 months on everything???

I dont mean this to mislead them in anyway, but this way you could see what would happen if/when you fall behind on the payments and better prepare yourself.

I agree on not wanting to sell the house and your reasons, long term it will pay dividends to keep them. I also have my relatives as tenants, sister in one house, brother in the other. just be careful if you are applying for any from of remortgage as most have clauses about letting to family members.

Really do hope you get something sorted mate, keep us posted.

ITBS (yes I like my name too:D )