What Happens in this Situation Sell My House or Walk Away Need Expert Advice Please

[SimpleSimon]

Hi I am in a sticky situation ,

entered into a Interest Only Mortgage with plans to switch to Repayment when loan to value increased , unfortunately my business went down the pan and I had to borrow cut along story short my credit file got messed up and was unable to remortgage now my mortgage is due and the mortgage company will not listen to anything such as extend term or switch to repayment etc -

not looking for sympathy as life happens to throw challenges at us all and I am now getting ready to sell property as in positive equity so hopefully will clear mortgage and move on.

however if i do not get price for it what happens or if i don't sell it at all ?

I cannot afford to pay it off simple as that without selling it and I am tempted to just leave keys in door and walk away -

what can I do any advice appreciated as I tried everything to get out of this mess but once your credit files get messed no one wants to know

I don't blame anybody apart from myself but that not going to help I need solutions and need to move on please dig deep and give me your honest opinion it is appreciated

kind regards

[Amethyst]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

Is your credit file still bad to exclude you from remortgaging now without entering some insane sub prime mortgage?

Is there enough equity to enable you to set up (rent deposit etc) on the remainder after paying the mortgage off even taking onto account selling at a lower than market value for a quick sale?

[FlamingParrot]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

however if i do not get price for it what happens or if i don't sell it at all ?

I cannot afford to pay it off simple as that without selling it and I am tempted to just leave keys in door and walk away -

what can I do any advice appreciated as I tried everything to get out of this mess but once your credit files get messed no one wants to know

I don't blame anybody apart from myself but that not going to help I need solutions and need to move on please dig deep and give me your honest opinion it is appreciated

Handing back the keys may sound like a simple solution but it's not usually a good idea, see this for reference. There are a lot of useful tips for dealing with mortgage problems on that factsheet: http://www.nationaldebtline.co.uk/en...rtgage-arrears

Handing back the keys
Warning Handing back the keys
If you think that your mortgage arrears situation is hopeless, you might be tempted to hand the keys back to your lender. For most people this is not a good idea.

Disadvantages of handing back the keys

• If you give your home back to your lender, you will still be charged the monthly instalments on the mortgage. If you do not pay, your lender will add the instalments to the debt you owe when the house is sold. They can also add extra interest. The monthly instalments will only stop being added when your lender sells your home. This could take a long time. Your lender will probably also add solicitor's and estate agent's fees, plus any court costs.
• Your lender will probably get a lower price for the house than if you sell it yourself. It is harder to get a buyer for an empty house. Empty houses are more likely to be vandalised or damaged.
• If you give up your home and ask your council to rehouse you, they will probably say that you have made yourself ‘intentionally (deliberately) homeless’ and refuse to offer you anywhere to live. Contact Shelter or phone us for advice. See ‘Useful contacts’ at the end of this guide.
• Although you will not have to pay council tax for the first six months after you have moved out, you may start to be charged council tax again until your home is sold.

[FlamingParrot]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

Other ideas from people who have had similar problems, which may or may not apply to you, but have worked out well for some:

• Taking in a lodger or two, if you have room to spare. Not ideal but better than losing your home.
• Moving out of the property, finding a smaller/cheaper place to live and letting it out, paying the mortgage with the rent. Inconvenient but has been a life saver for some. I know a guy with 3 properties who moved out of his main residence (a 3 bed flat), let it out and rented a room for himself for a while. He's now back in his flat.
• I also know people who have let out their homes as holiday lets, provided the property is suitable, income from these can be much higher than from long lets.
• I take it you have looked at SMI (support for mortgage interest). The rate is capped at 3.63% so it may not cover all your interest: https://www.gov.uk/support-for-mortgage-interest

[wales01man]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

Buddy dell! This was me 6 years ago.

[PlanB]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

now my mortgage is due and the mortgage company will not listen to anything such as extend term or switch to repayment etc -

. . . . and I am now getting ready to sell property as in positive equity so hopefully will clear mortgage and move on.

however if i do not get price for it what happens or if i don't sell it at all ?

I cannot afford to pay it off simple as that without selling it and I am tempted to just leave keys in door and walk away -

Whoa. Hold it right there. Never mind what your mortgage company will or won't listen to there are Pre-Action Protocol steps which they must listen to before they can repossess you whether they like it or not! I'll add a link to these at the end of this post

Don't even consider selling your house unless you want to.

So tell me the full story if you want me to help.

Who is your lender? Do you have mortgage arrears and how much are they? How many months is your mortgage in arrears (if it is)? What is the value of your property (approx.)? How much is the outstanding mortgage? How long is there left to run on the term of your loan?

This last question is paramount because a court will allow you to pay off your arrears (if any) over the remaining term of your loan. There is a legal precedent for this which mortgage lenders cannot ignore (High Court precedent). It's called Cheltenham & Gloucestershire vs Norgan. I post this legal case law time and time again because lenders pretend they don't know about it when they do because they want to bully you into submission. Here it is:

http://www.bailii.org/ew/cases/EWCA/Civ/1995/11.html

Other options have been posted on this thread. Will you at least give me the opportunity to rescue your current situation (if that's what you want) before you throw in the towel and consider alternatives

Here's the link to the Pre-Action Protocol which your lender must consider and that includes allowing you to remain on an interest only deal, extend the length of the mortgage, capitalize the arrears, and even a payment holiday. Read No 7 because that is the most important one:

http://www.justice.gov.uk/courts/pro...tocol/prot_mha

[SimpleSimon]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

plan B sounds as if you been down that road , how can you help it it through court / legal battle is that the way to go will look at justice thread as know the big boys seem to ignore all legal guidelines and do what ever they want I have seen it on my credit file I defaulted in 2005 but they applied a default in 2010 just to messed up my credit file for another 7 years can they do that not supposedly but its on there none the less no one really gives a hoot really in my experience I may be slightly cynical but just thats what I have found have asked 100s of people about this and its always the same if they can't see a way of monetising it for their financial gain they are not interested - human nature I know but its like asking the barber if you need a haircut he's priority is to put bread and milk on his kids kitchen table not help you out kind regards and thanks for reply

[SimpleSimon]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

hi thanks for reply yes my credit file is still messed up and had to enter debt management plan which is still active , I am hopeful that there will be enough to set up easily enough after selling and have made some emergent plans although renting process now has become more like a mortgage application with credit checks and god knows what else - this is my main concern too once and if property is sold as I could be not approved to pay rent - how rubbish is that as most of them rob you blind in admin fees

[PlanB]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

plan B sounds as if you been down that road. . . . .

. . . no one really gives a hoot really in my experience I may be slightly cynical but just thats what I have found have asked 100s of people about this and its always the same if they can't see a way of monetising it for their financial gain they are not interested

that's two depressing posts in a row which makes me think you're not in the mood to fight this Read this inspirational post which was made on this website in August 2012. The poster was helping someone stuck in a similar mindset and told them not to let it overwhelm them and all it takes is a mental shift.

Wait a minute, that poster was you! If you can think like that in 2012 then you can think like that again now

Hi Carldaw,

the important thing when dealing with debt is not to allow it to overwhelm you, been there and you need to form a plan otherwise it will cause you a massive head ache, get everything together and organised totals and income expenses then you have a start point which is what many people put off I have been in same situation and it takes a mental shift to decide to deal with all once you do this speak to the experts for free as advised above and ask people on here to help it is possible to get out and drastically reduce your debt - others have done it so get strength from that

[PlanB]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

entered into a Interest Only Mortgage with plans to switch to Repayment when loan to value increased , unfortunately my business went down the pan and I had to borrow cut along story short my credit file got messed up and was unable to remortgage now my mortgage is due and the mortgage company will not listen to anything such as extend term or switch to repayment etc -

This is a typical end-of-the-month post when mortgages have to be paid and the borrower hasn't got the money. Can you say whether that is your current situation which is why you're thinking of selling up to avoid repossession. If you can answer the questions I raised in post # 6 there may be a way to sort this

[PlanB]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

hi thanks for reply yes my credit file is still messed up and had to enter debt management plan which is still active , I am hopeful that there will be enough to set up easily enough after selling and have made some emergent plans although renting process now has become more like a mortgage application with credit checks and god knows what else - this is my main concern too once and if property is sold as I could be not approved to pay rent

If you're in a DMP you may be able to renegotiate your payment plan to free up money to satisfy your mortgage payment which is a priority debt. Some DMPs will let you take a payment holiday for up to three months to get you through a sticky patch.

You say you have equity in your property which is why you want to sell it. You can only sell a property once. Once it's gone it's gone. I don't know where you live but in most of the UK prices are increasing. If you hang on to your home for another year it may have earned you more money than you can earn yourself in a job Do some homework on prices in your neighbourhood. I can guide you to websites full of information.

The rental market has tightened-up its criteria for Landlord references. Defaults can be a problem but again it depends on where you live and the supply/demand for rental property in the area. If Landlords can be fussy then they will be fussy.

[PlanB]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

plan B sounds as if you been down that road , how can you help it it through court / legal battle is that the way to go will look at justice thread as know the big boys seem to ignore all legal guidelines and do what ever they want

Do you mean that possession proceedings have already been issued? Depending on your circumstances it may be possible for Shelter to send one of their housing lawyers to represent you in court. Failing that most county courts have a Duty Housing Solicitor (sometimes it's a barrister) who floats on repossession days and if you get to the court earlier enough you can bag one to go into the hearing with you.

Most of the repossessions I get to hear about are when the homeowner doesn't show up at court. What can a DJ do if he's not given the opportunity to exercise his discretion to prevent full repossession? He can't act on behalf of the borrowerer.

I share your cynicism that all lenders are simply money-making machines who don't care about their customers. That's true, because they are a business not a charity. But just like all bullying situations, if people act like a victim and let them, then they will continue to go on getting away with it. It's fight-back time

[PlanB]

Re: What Happens in this Situation Sell My House or Walk Away Need Expert Advice Plea

I've got your PM I'm glad to hear from you. I'll answer it in detail after the weekend.

May I ask you a rude but relevant question. How old are you and your wife? You can reply by PM since I'm being personal. The mortgage term is due to expire in December this year. Have I got that right? If so there is plenty of time to try to get this sorted.