Parents offer of help - i want to limit their loss/involvement

[purplegirl1975]

hi,

 

i have got a mortgage for about £63k and a secured loan for £73 on my property. The secured loan is through first national/GE Money and the current apr is 12.5% and the amount i owe is now much greater than i started with 4 years ago. This has led us to fall 6 months in arrears with both payments.

 

I have finally had to come clean to my parents as i decided to sell the house and pay both lenders off. my parents feel that it would be better to limit my losses for them to buy the property and then i can pay them £600 a month. Both lenders have agreed that they will give us 3 months to sell the house. Now as i feel bad that my parents could end up with a big fat loss on their hands i need advice.

 

The house is in not in great decorative or working order at the moment due to lack of funds. would i be better off getting estate agents in with the house looking its worst for low valuation and then go back to lenders with that as requested and see if they will accept a full and final settlement for a slightly reduced amount? to complicate matters i have £40k owing on ccs which have all been defaulted.

 

any helpful comments would be appreciated.

[brassed-off-2]

Welcome to the forum Purplegirl,

 

Firstly have you got their promises to delay, regarding the sale of your house in writing ?

 

Secondly have you got full statement of arrears off them ?

 

It might also be an idea to do a SAR to both companies, you might be surprised what you find.

 

Get copies of your credit files from the credit reference agencies, to see what you have on your file, and to see if there is anything that you can clear up.

 

There are plenty of people on this forum with a great amount of knowledge between them that may be able to help you.

 

Regards

B-O-2

[desperate&depressed]

Hi PurpleGirl

 

Do you know what sort of value you would get selling it? And what are your mortgage payments at the moment?

 

My line of thinking would be if you can get enough from the sale to cover the secured loans then I would sell and be rid of the stress.

[purplegirl1975]

thank you both for your replies. i have a letter from Britannia and spoke to GE yesterday so waiting for a letter.

 

I don't have a full statement of arrears should i ask them for 1?

 

I haven't sent a SAR yet as i didn't want to **** them off!

 

Neighbours house has just gone up for £215k and although it's smaller is in better decorative order.

 

The combined payments are £1300. so yes i wanted rid of the stress which is why i told both lenders that i wanted to sell and pay them off but i wouldn't have enough for rent.

[desperate&depressed]

Sorry if I'm missing something but if you've got £136k owing and you're looking at getting around £200k to sell then you've got £64k left over, pay off your cc debts and you've still got money left?

 

Is that right?

 

[purplegirl1975]

yes but i already owe my parents £15k plus the £25k they gave me for my deposit. they have said they don't want me to pay them back but if i had the money i should. also even if i didn't the money would be gone before long i expect.

[desperate&depressed]

;)Hey Purplegirl

 

You could be my twin I think - your story is very similar to mine. If you want my honest opinion I think you should sell while you can. Some things are more important than money but feeling indebted to your parents is not a great feeling I know.

 

I would use this opportunity to clear all of your debts and start afresh - you don't know where the housing market will be in one or two years time and you might not be left with that much equity in it.

 

I can see your parents point of view and while they are just trying to help as best they can it would be awful for you if you got in a situation if you weren't able to pay them the £600/month.

 

Good luck with whatever you decide, it's got to be whats right for you and noone else.

 

[jansus]

Personally I think the first thing is to try and retain control of the sale of the house and three months is not long to sell the house. If it gets to the possession stage then maybe your parents could help with the arrears until it is sold. Otherwise the house could go for a much lower amount than what it is worth and then all your choices would be minimised.

 

Personally I think you may feel relieved to pay off your debts and stand on your own two feet and a lot of people are begining to see tha advantages of renting rather than the constant stress of being in debt.

 

Your decision of course but the main priority is to avoid possession if at all possible and then probably sell and have a fresh start.

 

IMO:)

[brassed-off-2]

I agree, with Jansus and d&d, the stress, indebtedness to parents, their worry although they will be hiding it from you etc.. it is better that you try to keep control of the sale and avoidthe repossession route if at all possible.

 

These are entirely your decisions, and you must act and do what is right for you.

 

The reason i mentioned the statement off arrears, is to ensure that there are no hidden extras that you may use in your favour to try and get the arrears reduced..eg unfair charges with interest added, incorrect handling of your accounts..e.g late or early payment processing.effectively forced repossession..this has happened to us and we are persuing our options at the moment.

 

The SAR, will give you an idea if everything is in order, contract signed, correct interest rates being applied. Just a few things to consider, as i am sure you will have read other threads on the forum.

 

I know, i wish, i had known abouth this site when we first hit problems with our lender a few years ago, because we were not fully aware of our rights and what help was available to us then might have made it easier for us now.

 

Take Care,

B-o-2

[purplegirl1975]

Thank you everyone. I think my parents are worried that if we try and sell the house and it sells for less than the amount that we need to payoff the secured loans then we will be worse off. we are going to see them tomorrow for a more in depth talk. my mum's bp has gone through the roof today and i feel awful and that i don't want to get them involved. they on the other hand feel that as they are financially more than able to help then i shouldn't end up in a bedsit with 2 kids when i can stay in my house.

 

thank you all for your thoughts they do echo my own.

 

i do know that ge money lost our signed credit agreement and phoned for weeks trying to get us to sign another one. we never did as it was so much hassle getting the original signed. i don't know if that helps us or not?

[missdpd]

Not to put a dampner on things, but with the state of the housing market at the moment, what is the real likelyhood of the house being sold within the specified timelimit? It's even feasible to say the house may still be on the market in a years time, even if your situation was different and you were conducting the sale without the debts to consider.

[gizmo111]

Thank you everyone. I think my parents are worried that if we try and sell the house and it sells for less than the amount that we need to payoff the secured loans then we will be worse off. we are going to see them tomorrow for a more in depth talk. my mum's bp has gone through the roof today and i feel awful and that i don't want to get them involved. they on the other hand feel that as they are financially more than able to help then i shouldn't end up in a bedsit with 2 kids when i can stay in my house.

 

Why would you end up in a bedsit?

 

What are your circumstances? Do you have a partner? Are you working?

If you rent privately then you maybe entitled to housing benefit.

How do your parents propose to pay for your house? Are they planning to use their savings? Remortgage their own property? What will be the arrangement, when they want their money back, if you move, if you meet a new partner? Have you any siblings and how would the yfeel about this arrangement? What happens if your parents have to go into care home and pay fees? There's lots of things to be thinking about and unless your parents are extremely well off then it is a situation to be avoided. Get the house valued by 3 estate agents for a realistic quick sale 3-6 months if neccsary borrow some money off your parents to keep the arrears down to keep off the repossesion.

 

thank you all for your thoughts they do echo my own.

 

i do know that ge money lost our signed credit agreement and phoned for weeks trying to get us to sign another one. we never did as it was so much hassle getting the original signed. i don't know if that helps us or not?

 

Not really it justs means the debt may be unenforceable in court, not that you don't owe it.