How to stop a repossession

[whitbybabe]

My sister is in dire financial trouble.She has fallen behind with her mortgage and her and her hubby are about �700 a month short of meeting all their bills.So for example,one month the mortgage gets paid,as does their car loan and small bills.The next month they pay the secured loan and not the mortgage so have fallen into arrears.Their mortgage provider has agreed �800 a month so that they can catch up(the mortgage is usually �600),and they are less than �2000 behind,but they have still had a letter from a solicitor stating all sorts of threats and lagal jargon.She is now thinking about one of those companies who buy your house and then you rent it from them.I am a little wary for her as I am sure these companies only give you 70% of what your property is ACTUALLY worth,and I am sure they would hike the rent up a great deal.Her and her hubby both work hard,and do not ever go out,have new clothes,or holidays etc.They have some historical debt from when he had his own business a few years ago and I know they are trying to pay this off aswell.They do not want to give their house up but feel backed into a corner.Have looked on internet for them and found various companies who help people re-mortgage even though they are behind with their mortgage.Any advice I can give her ? She does not have internet access.

[Ethel]

The best advice you can give her is to sell up and move into rented accommodation or a cheaper house.
This may seem harsh, but it will be a big relief to rid themselves of this financial burden. Hopefully there is enough equity in the property to clear the debts and start afresh.

It is obvious they cannot afford to live in their current property.

I agree with you about them selling and renting back - it will cost them dearly in the long run.

[Postdog]

No consolation I know, but I am in the same boat not as deep (yet!) but in the same boat all the same. Like them I am struggling, and I know how draining it can be - and, like them, all for the sake of a few thousand pounds I don't have. They have my sympathy, or should that be empathy ...

[WendyS]

My first thought would be for them to contact their mortgage lender and enquire whether the term of the mortgage can be extended.
Also, could they take in a lodger for a while? It's not an ideal solution having a stranger living in your house but it might provide them with a little extra income to repay their debts.
I feel that equity release schemes are generally poor value for money and should be avoided if possible.
If your sister contacts the Citizens Advice Bureau she may be able to get some more detailed advice. Consumer debt is unfortunately a huge problem at the moment and they may be able to put her in touch with somebody who can offer some valuable advice and help. With the bank rate and mortgage rates almost certain to rise again shortly she should seek advice as soon as possible.

[needawin]

Agree with Wendy. Citizens Advice is the best route to go.