government help re credit crunch?

[jules2008]

hi all is there any updated info on the governments way of helping out mortgage owners with the credit crunch ie the council or appointed bodies doing a buy back rent scheme where the council buy yr property and rent it back to you at an affordable rate.

i would like any information anyone has on this because i have contacted a company but because with my secured loan i am into negative equity they cant help me apparently.

I would find this very helpful at this time as it would be a way of keeping my home and when my circumstances change maybe i will get the option of buying back my home.

any thoughts on this?

[enaid]

Re: government help re credit crunch?

OFT investigates sale and rent back schemes

• Wednesday May 14 2008 16:53 BST

Controversial schemes that allow struggling homeowners to sell their property but remain living in it while paying rent are to be investigated by the Office of Fair Trading (OFT), it was announced today.
Sale and rent back (or lease back) companies offer to buy a property at a discounted rate and allow its owner to stay as a tenant.
The arrangements are used by borrowers struggling to meet their mortgage repayments who fear having their home repossessed, but companies have been accused of undervaluing properties and giving tenants little security of tenure.
With recent figures showing a 16% rise in the number of homeowners threatened with repossession in the first three months of this year, concerns are growing that more consumers may be turning to the unregulated schemes.
The OFT said it would be taking a detailed look at the industry and considering whether existing protection for consumers who sign up for them is adequate.
OFT chief executive, John Fingleton, said: "Sale and rent back schemes might be helpful for some consumers but there are a number of potential concerns including whether those in difficult circumstances are making well-informed choices.
"We are therefore prioritising this work to take a good look at whether consumers are adequately informed and protected."
In November, the housing charity Shelter joined forces with the Council of Mortgage Lenders and Citizens Advice to urge the government to have the schemes regulated by the Financial Services Authority.
Adam Sampson, chief executive of Shelter, said the OFT's study was "urgently needed" to get rid of the dishonest companies working in the industry.
"These companies encourage hard-up homeowners to sign up for what is plainly a very bad deal," he said. "Shelter has seen cases where homeowners have not only lost out financially after selling their homes to a sale and leaseback company, but also lack any right to permanently stay in their home and ultimately find themselves homeless."
Peter Tutton, debt policy officer for Citizens Advice, welcomed the study. "While the number of problems we have seen is relatively small, the consequences when things go wrong can be very serious, including people losing both their homes and substantial sums of money," he said.
"We have seen a number of cases where people in mortgage arrears and facing the threat of repossession have gone ahead with sale and rent back on the understanding this would allow them remain in their home in the longer term, only to find themselves homeless within a year."
Tutton added that he hoped the study would encourage companies to review what they were offering and how they dealt with consumers.
The OFT expects to publish its report in September.

[enaid]

Re: government help re credit crunch?

Her is a link to the OFT website, it doesn't look like the report has been published as yet.

Sale and rent back: questions and answers
Questions and answers relating to the OFT's market study of sale and rent back
13 May 08

Have a read of that and it may help you decide if it's right for you or not.
As for the government plans to help people, I suppose we can only make sure we keep up do date with what the press etc say. Hopes this helps a little Enaid x

[Amethyst]

Re: government help re credit crunch?

If you are looking at selling and renting back then councils I think would be a much better option than fly by night cowboy laptop in the office loo buy and rent backers.

If you do decide this is the way to go then please let us look at the companies first.

I hate to go on jules but please do your IE and your full list of debts. I am trying to get the full picture here but its incredibly difficult and you need to look at the whole picture to sort things out, fixing one bit one way and another bit another way is going to be terribly stressful and timeconsuming for you.

[Ladidi]

Re: government help re credit crunch?

I think the help Jules2008 is looking for is where the government are looking at giving so much money to housing associations and councils that will either allow them to buy the property of the said debtor or a share of it.

This is still in talking tables and nothing is deffinite if I am right, as I am too going to consider this, but I want to know this in's and out's of their proposals what it wil mean for me etc before I go to any conclusion.

At the moment they are on about helping those with re possession orders. But they are also saying they will not help those that wont pay or just stop paying so that they can be bought out. As what they are saying is, we accept you cannot afford to pay your full balance due for your mortgages, but you must be able to show you can pay something, as the way they would look at it if you paid nothing at all, if the council were to buy back your house for example and you paid nothing on your mortgage how would you pay the rent? As I said the government are talking about it, nothing is concrete at the moment. I think they want to use this as an election winner to keep Mr Brown in office at the same time keeping a hard pressed home owner in thier home.


You are in: London > London Local > Barking and Dagenham > Work and Money > Councils could help housing crisis
A tough future for homeowners?

Councils could help housing crisis

Lebo Diseko

Councils could have a major role in helping in the current housing crisis. That’s according to Barking & Dagenham council.

They're calling on the government to give councils the freedom to homes on a massive scale and put them back in public ownership.
The move follows the announcement by the government that councils could be given the power to by homes that are about to be repossessed.
“For us, councils need to be stepping in a long time before its residents can't pay their mortgage, and looking instead at ways to reduce the housing boom and bust in their area,” says Councillor Liam Smith, who is executive member for housing.
“In boroughs like ours the council has historically had an enduring majority share in the housing market, in our case by owning two out of every three houses.

“But now that stability has gone, replaced instead by people on low incomes overstretching themselves for mortgages they can’t afford, and absentee landlords snapping up buy-to-let properties and renting them out to all comers.

Under the council’s plans, any properties that come onto the private housing market could be bought
“The properties we want to get back into public ownership are the ones which are making a negative contribution to our community. So yes, we would like to give some hope to homeowners facing repossession, but first we need to tackle the run-down empty houses, the over-occupied buy-to-let flats, and the high-turnover rented properties,” says Cllr Smith.
“By buying up the bottom end of the private market – the part most affected by the current economic climate and the part with the least stake in the community – we can bring stability to the lives of thousands of our residents and the neighbourhoods they live in.”


last updated: 29/08/2008 at 17:51
created: 29/08/2008

I maybe wrong but is the way I am reading things...

[Ladidi]

Re: government help re credit crunch?

market

The government is due to set out proposals to reinvigorate the housing market, including a mortgage rescue scheme for those in England and help for first time buyers.

Here is the link for the Audio BBC news giving a talk on what they are talking about recently re the housing market..

http://news.bbc.co.uk/today/hi/today...00/7593225.stm

3 Sep 2008
House plans 'will aid homeowners'



Hazel Blears, the communities secretary, and Dr Peter King, from the Centre for Housing Research at De Montfort University, explain what housing measures will mean.
3 Sep 2008

This is the link for the audio on what the proposals mean or can mean.



http://news.bbc.co.uk/today/hi/today...00/7593284.stm

[jules2008]

Re: government help re credit crunch?

I hope they will bring these measures in soon because i could be faced with having to sell my home. The other alternative i have considered is renting my house out on a 6 mth lease this would put me in a better position than i am now and maybe i could re-mortgage after this time and be offered a good deal.
I could then rent a room somewhere or a flat for 6 mths then re evaluate my situation.
------------------------------- merged -------------------------------
Also i have done an IE sheet how do i post it on here?
------------------------------- merged -------------------------------
amythest dont worry i will not consider doing anything without consultation first.

in fact i did contact a firm doing buy and rent back and they said i was not eligable because i have negative equity so i wonder where i would stand with the government run scheme.
i might contact some local housing associations and see if they are willing to do something? as i know they have part ownership schemes might be worth a try.

but i think alot of these companies doing the buy rent back schemes you have to have enough equity in the property to make it worth their while not sure how they operate to be honest but a government one would be a better bet for sure.

so if i rent my house for 6 mnths and wait till it is all finalised and dont make any rush decisions prob be best bet for me.

[Amethyst]

Re: government help re credit crunch?

You can upload the excel or jpg file as an attachment. If you click post reply there should be a paperclip icon in the formatting toolbar.

If not you can email to me at Amethyst@legalbeagles.info


How does renting a room / flat equate with the care plans for your son ?

[Amethyst]

Re: government help re credit crunch?

Thanks hunny have that now can you do the list of debts too pls. LBL/cards etc etc. (I know i'm a bossy so and so sometimes) Then I'll set you up a Managing finance thread and leave you to it on this one

[jules2008]

Re: government help re credit crunch?

ok glad you have that i will do you a list of my debts no problemo will prob be tomorrow now if thats ok.

finding a flat will be easier if my son is with me which he is at present so hopefully should not be a problem.

want to run something by you what do you think if i put the mortgage into say my parents name then i go to council and say that i cant keep up mortgage payments on my parents property so they have to re-house me. I have not made myself homeless it is circumstances that are beyond my control with the credit crunch and everything my parents need to rent the house out to someone else or they could loose their investment.

Then they have to re-house me and my son.

my parents then rent out the house through a letting agency for say a six month lease and then i will review the situation. the government might have sorted out measures by then and would be in a much better position.
Also might be able to re-mortgage in six months time.

what you rekon? desperate times require desperate measures

[enaid]

Re: government help re credit crunch?

I feel like the "Grim Reapers" sister on your thread jules lol

Just a cautionary note about letting your house out. I know this for fact cause I am doing it myself.
I am renting mine out on 6 months lease cause that is the only way the agent will do it and that suits me fine.
This is just to remind you that you have to pay your mortgage while it's waiting for tenants, you have to inform your mortgage lender also. In my case my mortgage deal was at it's end so I switched to a buy to let mortgage, int only.
The tenants have only been in my house since the end of July. So far I have received very little income from it as the agent takes his fee first, then there are certin checks to have done, ie a gas check mine was £60 and all was ok luckily.
I did have to have a carpet laid in the lads bedroom too, it was painted floorboards and was told by the agent it would look better carpeted so it was done.
Last month there was a leak in the upstairs toilet and that had to be repaired, I am still awaiting a bill for this, but it will come out of this months rent.
I am assured by the rental agent that after about the first 3 months things will settle.
I am only telling you this in case you think renting out will be a quick fix, it may not be Enaid xx

[jules2008]

Re: government help re credit crunch?

ok thanks i know it wont be a picnic but it is worth a try.

Is your rent guaranteed by the letting agency i mean if they decide to leave for whatever reason or dont pay one mnth the agency do they have to make it up?
How long did it take for you to get a tenant ? did you have to wait long? where you paying for your rent somewhere else and yr mortgage?
I realise i would be liable for any repairs their may be in the house. do you get someone to fix it or do they get someone and send you the bill? because i know someone who can do lots of odd jobs and he is very reasonable so wont be too bad.

[enaid]

Re: government help re credit crunch?

ok thanks i know it wont be a picnic but it is worth a try.

Is your rent guaranteed by the letting agency i mean if they decide to leave for whatever reason or dont pay one mnth the agency do they have to make it up? No, the rent is not guaranteed, if the tenant does not pay for 2 months I believe they can start to get them out.
How long did it take for you to get a tenant ? did you have to wait long? It was only a month before we go a tenant have just been told they are applying for housing benefit, I just hope they get it.
where you paying for your rent somewhere else and yr mortgage? Yes I have moved to a different area now.
I realise i would be liable for any repairs their may be in the house. do you get someone to fix it or do they get someone and send you the bill? because i know someone who can do lots of odd jobs and he is very reasonable so wont be too bad.

No you can have who you want for repairs I think, it's just we live a fair way from the other house.

I feel like the "Grim Reapers" sister on your thread jules lol

Just a cautionary note about letting your house out. I know this for fact cause I am doing it myself.
I am renting mine out on 6 months lease cause that is the only way the agent will do it and that suits me fine.
This is just to remind you that you have to pay your mortgage while it's waiting for tenants, you have to inform your mortgage lender also. In my case my mortgage deal was at it's end so I switched to a buy to let mortgage, int only.
The tenants have only been in my house since the end of July. So far i have received very little income from it as the agent takes his fee first, then there are certin checks to have done, ie a gas check mine was £60 and all was ok luckily.
I did have to have a carpet laid in the lads bedroom too, it was painted floorboards and was told by the agent it would look better carpeted so it was done.
Last month there was aleak in the upstairs toilet and that had to be repaired, I am still awaiting a bill for this, but it will come out of thismonths rent.
I am assured by the rental agent that after about the first 3 months things will settle.
I am onl

[jules2008]

Re: government help re credit crunch?

thank you for your comments Enaid very helpful and especially as you are already doing what i am considering.

I believe the letting agency i am going through do a guaranteed rent scheme of course you have to pay more for this but i think it is the only way that i would consider doing something like this.
my sister rents her top floor flat out and she pays an extra £70 a mnth to guarantee that the mortgage is paid what do you think of that?