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Repossession - Can I sell?


wildtrekker
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Hi

 

We are currently facing eviction from our mortgage company. They got a judgment over 14 months ago and we had agreed to pay an extra £100 on top of the normal payments. We have now fallen behind again and we just can't keep up the payments.

 

We have tried the mortgage rescue scheme, as advised by CAB, but they can't help, as with this and the secured loan, plus the drop in house prices, there is not enough to cover it.

 

We did have an eviction date for last week, but we went to court to have it suspended whilst we look at mortgage rescue and have to go back on 13th May 2010.

 

We are hoping to get a second delay to give us time to find accomodation, if not, I guess we will have 28 days from then to get out.

 

All this we accept, but here's my what I am trying to sort.

 

We have had a an offer to buy the house form someone we know, he has the cash and looks at it as a long term investment.

 

He then wants to rent it back to us, which helps us as we can get housing benifit, so we will be rent free until we get back on our feet.

 

An identical property, 3 doors down, is on the market for £130,000. The Mortgage rescue scheme told us they would value it at £115,000. An estate agent, different to the one for sale, said they would put ours on at £130,000

 

The first mortgage is £119,000 owning and the secured loan is £10,000.

 

If I wanted to, can I sell the property whilst they are trying to get it repossesed and can I sell it for £115,000 or even £110,000 if someone offered me that?

 

I understand it will leave a shortfall dept, but I need to know if I can do it or would the morgage companies be able to stop me as it's less?

 

Hope someone can help

 

Cheers

 

WT

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I would double check that you'll be entitled to housing benefit if you rent it back. Most councils will only pay housing benefit on a property you've previously owned if it's sold through the Mortgage Rescue Scheme.

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