Picture 2nd Secured Loan cant pay full ammount - they say they WILL get an Attachment of Earnings?

[sirbob10]

Hi

 

I'm needing some help.

 

After deciding to give up our home and rent I'm not sure how to go about doing this.

 

I've spoken to our mortgage company who say we can hand the keys back and as soon as we sign the form the the house is no longer our so won't be responsible for it, or we can wait and when we've missed 6 months payments they'll start the repossession process.

 

Upon speaking to my council should I rent I am entitled to claim council tax help but only on the house I live in. I shall still be responsible to pay the council tax on the house I own until it's repossessed. My mortgage company say that if I sign the form they are responsible for the house so I won't have to pay council tax on it but i will still be charged interest until the house is sold.

 

So do I sign the form and send the keys back or stay until I'm forced out.

[OLIVE.FAMILY]

Hi there

 

We are in a similar situation of sorts. A bit more complex but ultimately we want to sell up to rent

 

Can you not try and sell your house? as the housing market has picked up somewhat

 

Olives xx

[veganite]

Upon speaking to my council should I rent I am entitled to claim council tax help but only on the house I live in.

You should be entitled to claim council tax help on the house you are paying the mortgage. You are also entitled to housing benefit for the house with the mortgage - providing you meet the criteria for housing benefit.

 

So do I sign the form and send the keys back or stay until I'm forced out.

Either scenario has its advantages and disadvantages which are dependant upon your financial circumstances and your requirements for the future.

[sirbob10]

Hi

 

We are unable to sell due to a secured loan on the house who say they will block any attempt to sell.

 

My council say I can't claim council tax help on 2 homes so I'd have to pay on the house I own until it's repossessed while receiving benefit for the house I'm renting.

[sirbob10]

Also I don't meet the criteria for help with my mortgage but if I rented I'd be entitled to housing benefit.

[veganite]

Your entitlement to council tax help applies to any house you are living in, whether it be rented or mortgaged.

 

Your entitlement to housing benefit also applies to rented or mortgaged house. I think that if you claimed housing benefit for your mortgaged house then you would be entitled to the interest payment only.

 

I don't understand what advantages you would have in letting your home get repossessed and then renting another home and I feel it has something to do with benefits? Perhaps it may help you if you post in benefits section of forum as there seems to be a lot of help within that section?

[caro]

Hi

 

We are unable to sell due to a secured loan on the house who say they will block any attempt to sell.

 

My council say I can't claim council tax help on 2 homes so I'd have to pay on the house I own until it's repossessed while receiving benefit for the house I'm renting.

 

Are you in arrears with the mortgage and the secured loan?

 

I think more info is needed before you can make a decision. I also think it's worth getting your house valued, and get it in writing which may help you now and in the future if/when the issue of possible shortfall arises.

[sirbob10]

Hi

 

I can claim council tax help but not for 2 houses. If I leave my mortgaged home then until it is repossessed I have to pay the council tax. I can however claim benefit on the house I'm renting.

 

Also you can't get housing benefit for a mortgaged home. You can claim help with interest payments but only if are on certain income based benefits which I'm not.

 

Again as I own my home I can't get any help with my mortgage but if I rent I can get housing benefit.

 

I was asking about repossession and whether I should just give the keys back or wait until they begin the repossession process so that's why I posted in this section.

[sirbob10]

Hi

 

I'm £325 in arreas with my mortgage and £11,000 with the secured loan. I also have a charging order for £28,000.

 

Our home although liveable needs lots of work doing which we just can't afford due to my husband being ill and on benefits.

 

We paid £115,000 for its 7 years ago and 2 years ago it was valued at about £105,000. A house on the end of our street I'd up for £90,000.

[OLIVE.FAMILY]

So how much of that 11,000 do you think is charges ?

If a bulk of it is then you could get that deducted from the mortgage owed. House prices are changing and climbing. It will be worth getting it revalued.

 

Xx

[lollyjoy6]

You could try and stay in the property and sell it.If you are hoping to be rehoused by the Local Council then you'd have to wait until eviction as Local Councils see it that you've made yourself intentionally homeless if you hand back keys.

 

 

Then on the other hand if you sell and left with any profit you probably wouldn't be entertained by your local housing Dept as you've money over from the sale this would be considered in a Benefit claim.I was on the understanding that if you hand back the keys you are still responsible for the property insurance council tax etc.Also if you sign any papers back to your Mortgage Lender then doesn't that put you in the position that you acknowledge the debt for any shortfall after a sale?

 

I had to go through the process of eviction.I left my old property informed the Council tax dept completed a form and they refunded money back.I was offered Temp housing but it would of cost me £250.00 a week in the end I went to stay with My father.I'm self employed and even though I receive a very small amount of housing benefit. I don't receive any deductions off my council tax.I know when I completed my housing benefit and council tax application I did this with a Benefit officer from my local council and they asked how much the property I left was valued at.

 

As soon as I received letters last year in July regarding repossession I was contacted by my local Council homeless unit,They seemed to want to push me towards private rentals.I have a Son who works for a Housing Association dealing with the rents and benefits etc he said to hold out for a Social rented property.I did but that took an awful lot of time phoning three or four times in a week to put them in the picture of where I was with everything as they offered a Bond Scheme but no Private Landlord would touch it.I couldn't pay my mortgage in the end it but my rent is paid every week.

 

Also my Son informed me that any Benefit applications are really looked at and down to the last penny as it's all means tested so any difference in money coming in you've to tell them.Maybe you need to speak to a Welfare Benefit Officer to put you in the picture of what you are likely to receive.I went on an online checker but it gave me a higher amount for housing and council tax benefit.

 

When I received the final amount it was a lot less than I thought I'd receive.I have £349.00 coming each week in taking in my self employment working tax child tax credit/small private pension of my husband 1 child of 14yrs.My rent is £157.00 a week of which £22.00 has been deducted in housing benefit.My council tax is £88.00 a month no deductions.In the end we had to do what we thought was right to wait for the eviction date if only to get us all back on track for our own sanity and well being as we felt we were drowning in it all with no lifeboat.

 

My Husband has mental health issues and at times was about to lose the plot.It's not easy and it requires a lot of input from yourself to decide the best route to take and I can understand where you are coming from.

 

I'm fortunate that I'm rehoused in the same area I've lived since I was born.

Edited August 7, 2014 by citizenB

[sirbob10]

Hi

 

Thanks for your advice.

 

My house is in negative equity so no chance of making any money.

 

I've been on my councils website which has given me a rough idea of what I'd be entitled to but will be seeing someone from CAB to get some more help.

 

I have 3 daughters under 16 and a husband on ESA contribution based and also on DLA so I've put in the exact figures along with my wages to get an idea about HB and council tax help.

 

I've a house lined up through an estate agents so hopefully we now have somewhere to go.

 

I'll be glad to see the back of this house

[lollyjoy6]

Hi does your council not have a homeless unit to speak to.I went to mine had an interview as I had a 4 children at home but 3 now over 18 but a 14 year old.They would take into consideration the children under 16 years.I was told then that I needed a 5 bedroom house which I am in now as I've 3 girls and one boy.I was living in a 3 bedroom house before.You really need to see a welfare rights officer to see what you are entitled to.I waited for the eviction date so I could be rehoused by my local council.I know for some it might not work out like that depending where you live in the country.The house I left has been sold to a cash buyer and has left a shortfall of nearly £24.000.

[sirbob10]

Hi

 

We have a house lined up as my in laws have paid the agent fees, bond and 1st months rent for us. At least this way I can stay in the same area and keep my daughters at the same school specially our middle daughter as she has learning difficulties and has taken some time for her to settle and receive help.

 

I'm aware of what's going to happen when the house sells for less than what's owed but it's not going to be half as bad as the constant threat of the them saying they'll repossess us. Our secured loan people just refused to help and refused to let us sell the house to get as much as we could. I told them you might be able to stop me selling but you can't stop me handing the keys back.

 

So in a way I'm pleased I'm taking the lead in this and I'm not going to be bullied by them. I've fought to get my husband in the right group of ESA, fought to get my daughter the help she needs so I'm more than capable of taking these people on.