1st time poster. Please help, urgent advice needed.

[spookyelectric0127]

hi,

 

i came across this excellent forum last night and am hoping for help and advice with our current finanical issues,

 

my wife, 2 x children and i live in a mortgaged house (GE Money) which we have had for appox 14 months.

Our standrd monthly payment was £960.00 per month, however we fell behind and owe 2k in arrears.

2 x weeks ago we received a lettter requesting we attend court on the 23rd February as they are wanting to reposess.

 

Obviously scared i phoned them and they said that i could pay the arrears over 24 months which means we now pay £1100.00 a month.

 

We also have a £300.00 a month unsecured loan and £200.00 a month is paid for a car with have on finance.

Basically we are in a mess and do not have hardly any disposable income available.

 

Our credit history is poor.

 

Anyway,

 

Last week my mum announced that she is moving away with her new partner, therefore her house will be availble and she has asked us if we would like to rent it off her and just cover her mortgage which is £400.00 a month and a massive saving for us.

 

The problems lie here,

 

With an early redemption charge we will owe £159,000 for our house and will definately incurr a shortfall.

 

We have considered volantry reposession but worried about being hit with a massive bill for the shortfall and having pay this off.

 

We now think that bankruptcy maybe our best option but not sure what to do,

 

Should we apply for bankruptcy 1st and then volantry reposess or volantry reposess and then apply for bankruptcy?

 

Also what should i do about the court date on the 23rd Feb, carry on making the £1100.00 a month payments and keep it quiet until things are sorted?

 

Basically i know nothing at all and we are worried sick.

 

My mum will be leaving within the next 6 - 8 weeks so i need to do something now.

 

what is the best way to approach this?

 

Basically i have to ensure we are not liable for the shortfall and also need to clear/reduce our loan and car finanace as this is crippelling us.

 

Also,

If we apply for bankruptcy can they adivse we keep or house or are we within our rights to tell them that due to the mortgage payments being so high we would like to find alternative accomodation?

 

Is there any reason why our bankruptcy would be rejected?

 

Sorry for all the questions but really need advice on what route we need to take to ensure the future of our family and free us from a huge mortgage and crippelling debts.

 

thanks in advance

[bottomburp]

I was under the impression that lenders were supposed to be doing everything they could to help people stay in their houses....

 

If I have understood correctly your mortage is £960 but due to arrears should increase to £1100 for the next 24 months.

 

You also have repayments of £500pm on a loan and a car.

 

Total £1,100 + £500 = £1,500.

 

It seems to me that a good solution would be for you to take up your mother's offer and move into her house (£400 pm). That would increase your outgoings to £1,900 BUT if you rented out YOUR house for £600pm this would have the effect of reducing the payments you had to find the money for to £1,300.

 

That might be a neat solution to your problem and your house will, eventually, increase in value... as will your mother's.