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samanthadm
Starting Member
United Kingdom
27 Posts |
 Posted - 18 July 2009 : 12:30:10
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Hallo. We have a very high mortgage, a secured loan and several credit cards, we need to declare bankruptcy to get rid of this eternal feeling of panic. We have been lookng to move into rented accomodation with the plan of handing back the keys and then declaring BR. We have cancelled all our dd's and are not going to make any payments to the mortgage company or credit cards at the end of this month. I had an idea of selling our home to a quick sell company that rents back, this would pay off the majority of the mortgage, but not the secured loan, or any of the other debts. We could then rent back our home so we dont need to move. I have heard horror stories about massive rent increases from some of these companies though, and that is a big concern. And I am not sure if this is a sensible, or even a viable option ???
Part of me thinks we should move into rented accomodation and totally start fresh, but my little boy broke my heart last night saying he didnt want to leave our home and that has prompted me to consider this. Has anybody done this?? Is it legal? Is it recommended? Does anybody know of reputable companies who buy and rent back? I have heard you can even buy your home back, which could be an option for us in 6 years. Sorry if I sound repetitive and disjointed, my head is allover the place at the moment. I have been looking for homes and schools in a panic throughout the week,, trying to beat the summer holiday deadline. we are worried about being accepted as tenants once are credit reference shows so many missed payments. Thank you for your help |
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newbee
New Member
United Kingdom
94 Posts |
Posted - 18 July 2009 : 13:11:04
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| hi we did the same as you about a year ago we handed back the keys and we also had a loan on the house and this was not cleared up with the sale of the house so now we are looking to go bankrupted as soon as poss . as for handing back the keys i would recommend this as it worked for us we went and got a rented house at the begining of it all and my dad acted as my guarantor which they were happy with as for a company buying back your house all i hear are bad storys so this was not for me. your son will come around both my kids did and now they love where we live we just made out that we where moving didnt tell them why as they dont need to no that. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 18 July 2009 : 16:36:18
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Hi Samanthadm and welcome to the forum.
With regard to selling the house and renting it back this works well for some people but has some limitations.
It is usual that these companies want to buy the house at around 70% of the market value.
Unfortunately in your case if the sale doesn't clear off all of the first mortgage or any of the second mortgage than the mortgage companies will definately block the sale. So it sounds like that is a non starter.
In order to review a complete debt solution you first need to slow down and understand what you are trying to achieve.
Some people want to get rid of their unsecured debts and are prepared to maintain the first and second mortgage.
Other people want to draw a line under everything and enjoy a clean fresh start. If handled properly and planded for carefully it is in many cases the very best option.
( WARNING - before deciding upon keeping or surrendering a house please think carefully about the affordability of maintaining the mortgage for the next 25 years. If upir plans go wrong and the house is ultimately reposessed in 3 years then you could realistically be looking at going Br again )
Think about what you are trying to achieve, decide what is important, get a plan, work out a time frame ( much longer than you origionally think )and stick to it religiously.
Hope this helps
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 18 July 2009 : 17:42:38
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Thank you all for your sound advice. We are commited to a fresh start and wish to draw a line under our financial history and start living again without this constant stress and worry. Our provisional plan is to stop all the d.d's and mortgage payments this month, find a home to rent and secure this before the credit rating deteriorates further, move then save for the br. One thing I am unsure about is whether to hand the keys back as soon as we have moved, or to wait until we have the money for the br?
things . . . can only get better |
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newbee
New Member
United Kingdom
94 Posts |
Posted - 19 July 2009 : 09:51:24
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[quote]Originally posted by samanthadm
Thank you all for your sound advice. We are commited to a fresh start and wish to draw a line under our financial history and start living again without this constant stress and worry. Our provisional plan is to stop all the d.d's and mortgage payments this month, find a home to rent and secure this before the credit rating deteriorates further, move then save for the br. One thing I am unsure about is whether to hand the keys back as soon as we have moved, or to wait until we have the money for the br?
things . . . can only get better
what we did was to wait untill we had the money and then find a rented place once we had every thing out the house that we whated we then sent the keys to the morgage company.as it took us a bit of time to move our stuff .once we gave the keys back it took them about 2 weeks to go to the house and change the locks .
so make sure u have all the money first and all your stuff out as u dont want them to lock you out when you still have stuff in there
hope this helps a bit . |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 19 July 2009 : 10:14:38
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Hi
don't move too soon.
There is a unique window of time when you are not paying mortgage payments but still have somewhere to live.
you won't be asked to leave for several months yet so lots of time.
even with a poor credit rating if you were able to save 65 or 6 months rent in advance then most landlords will be happy to have you.
Also very useful incase you have to move in 12 months time that you will already have a substantial deposit for the next rental.
really recommend you stay where you are, don't pay anyone - except council tax and save like mad.
Suggest you secure a new house to rent on say October 30th and move into already arranged new rental on Nov 1st.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 19 July 2009 : 11:11:06
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Hello
Could you manage the mortgage and secured loan if you did not pay any of the unsecured. It is a drastic step to give up your home, you will be put on the mortgage default register so getting back into home ownership again will be almost impossible I say almost. If you are going to consider renting then this sector is again unsecure, how do you know if the owner of your new property will not get repossessed what if they want the property back, your tenancy will only normally be six months, if you can afford private rent can you really not afford your home. Please dont just jump into this get some free help from the Citizens Advive Bureau, and CCCS and National Debtline if the end result is repossession then at least you can say you did everthing possible to keep your home which should be your top priority. |
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Jane.l
Average Member
511 Posts |
Posted - 19 July 2009 : 11:19:39
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I agree that you do need to think long and hard whether you can keep up the mortgage and secured loan payments for the next 25 years, we were in your postion and gave the house up, it was costing too much per month.
Maybe you would be eligible for a council house?
We rented privately for 18 months after leaving our mortgaged house and now have a council house with a lifetime tenancy, we never want to even entertain the idea of buying a house again, but I agree the private sector with its 6 monthly tenancy is not ideal, I found it very stressful not knowing and worrying that we had not got a secure place to live forever. I am a lot calmer now |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 19 July 2009 : 13:35:04
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It was the one thing that stopped me going bankrupt - the thought of losing my house.
I can afford the mortgage and secured loan at the moment, and this is my legacy to my daughter.
As long as I can afford the bills, I would never voluntarily give up my house.
The glimmer gets brighter all the time
Jan
xx |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 19 July 2009 : 16:53:13
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If it had meant that I would lose my home there's no way I would have been able to go BR. I don't know what I would have done as my IVA was unaffordable, but there's no way I could lose my home.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
24 IPA payments made, 12 to go - on the home straight! |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 19 July 2009 : 17:39:18
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Should have said home Skippy, rather than house.
We love living here, daughter has grown up here, it's peaceful, private, great neighbours. We wouldn't get that anywhere else.
The glimmer gets brighter all the time
Jan
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 19 July 2009 : 19:53:54
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There is a huge difference between a home and a house.
people really need to sit down and calculate the liklihood of being able to fully repay the mortgage over a long period of time.
If the mortgage rate goes to 8 0r 10% is the mortgage really affordable.
Some mortgage brokers and many mortgage companies have got carried away with offering mortgages under any circumstances, often at the expense of the mortgagee.
take your time,and think carefully about all your options.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 19 July 2009 : 21:05:15
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Thank you everyone, especially Paul. My husband is very grateful for your advice as he is in favour of going slow and accumilating as much cash as poss. I am more anxious on this and want to move, get secured somewhere and start again a.s.a.p.
It's tricky, and I guess holding on is the sensible and brave thing to do. Just dreading the phonecalls, and trying to rent with a worsening credit score. we wouldnt be giving up our home unless we were at the end of the road, we have been trying and fighting for years, we went to a credit consolidation company 10 years ago, but those debts, despite what we were told, are still there, we had ccj's through this and have paid through the nose ever since. If we had gone br then, we would be in a different life now, but we tried and things have just got worse and worse. I'm sure we are not the only ones with a crippling mortgage rate, living on credit and hoping for a miracle. The worst thing will be uprooting our boys, but I expect they will adapt as everyone says. Would be grateful for any advice or stories, it's such a help knowing we are not the only ones. Thanks again to you all
things . . . can only get better |
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frosie90
Junior Member
285 Posts |
Posted - 19 July 2009 : 21:29:06
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Hi Samanthadm,
You are certainly not alone and the advice on this site was invaluable to me. I had mortgaged property but was struggling paying the mortgage with all my other debts although I did not miss a payment until March of this year. I was going to use the first missed payment to pay my court fees but did not cancel the direct debit in time. I thought long and hard about the house because it was my home for 13 years and I had put a lot into it and it meant a lot. The thing that steered me towards voluntarily surrendering it was the fact that the mortgage fixed rate would have been up in three years time and I also thought that I would never have "fully" owned it and was effectively renting it at £767 per month. Unlike you I do not have children so it was only me if affected. I secured rented property whilst my credit was goodish and had no problems once I became BR. To be honest when I was viewing rented properties I did not want to like them because I felt so unhappy at "losing" my home. To be honest nearly 4 months down the line I am happier than I have been in many years. My rented house is lovely and in a great location close to work. My landlord has said that when my rental comes up for renewal in September he will renew it for a further 12 months so great news for me. Like Janel said though it is a worrying time when you rent privately as you live from rental period to the next hoping they are not thinking of selling the property. It was definitely the best thing for me and people have said I look so much better than I have for a long time. It is, as all have advised, a long hard decision you need to make as obviously like Kallis and Skippy said they would not have given up their homes so it is a decision that both you and your OH have to agree on. Like Paul said that once you miss payments they will not "turf" you out straight away. It was only once I had sent back the keys etc. that they came over and changed the locks. Sorry about the long post but wanted to share my story. You can read my previous posts from March/April etc. when I was dealing with the house issue which may be of use to you? All the best.
Rosie |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 19 July 2009 : 22:15:03
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Have you ever thought of doing a blog Frosie?
The glimmer gets brighter all the time
Jan
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frosie90
Junior Member
285 Posts |
Posted - 19 July 2009 : 22:21:39
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Reckon I should have done Kallis. I get on a roll don't I? Couldn't do one cos reckon I would go off in all sorts of tangents!!! Probably would add pictures too, lol. This site makes us all really passionate doesn't it. Reckon I will be posting for years to come. Hope you doing ok?
Rosie aka Frosie. x |
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Hallo. we need to declare bankruptcy
