Help. Advice Please.

[chrissa1]

As some of you lovely people know I recently lost my husband. We were just getting back on our feet financially when he died and were in arrears on our mortgages.
The mortgagee has agreed to give me 6 months to find another place to live before they repossess the house. I've found a little cottage which seems fine to rent.
I have another property which we used to Holiday Let but I am arrears on this one too and can't afford to keep it. I know that I am not going to make any profit on this property so I was thinking about just letting the mortgagee take that one too and save
Estate Agents fees and up front advertising costs which I cannot afford.

Any thoughts??

[chrissa1]

Thanks anne. So much to do and so much to think about.

[vivandorron]

chrissa......It's just an afterthought on my part.

You have said that the Mortgagee has given you 6months to find another place before repossessing your property. I think you will find that, unless there is at present a Court Order to allow the repossession in 6months, the Mortgagee will have to get such an order before they are able to proceed with the sale of your property. It could then become an issue for the Court to decide if your mortgaged property should be sold immediately; whilst taking into account low market values which have possibly brought about a negative equity situation.

I am airing my views but honestly think that you should seek some real independent legal advice.

Best wishes....Ron

[chrissa1]

Thanks for that Ron. I have taken advice from a Debt Help Agency linked to the CAB and they have told me that I can't afford to keep my home, never mind the Holiday Let so they both have to go.
I tossed and turned last night and then remembered that I'd been approached by "Express Estate Agency" on a no sale no fee basis. I think that this is the way to go as it would get the property sold and stop Council Tax debts having to be paid on it etc.

[themas]

Chrissa

I seem to recall from one of your earlier posts that one (or is it both?) of these properties is in negative equity. In other words, it is not just a case of you being behind with the payments on the mortgages. If it/they is/are in negative equity it is quite possible that the mortgage lender will not agree to a sale because their debt would not be paid off in full by the sale proceeds. (I know this sounds daft because repossession normally results in them getting less for the property, but it is certainly the way some lenders act.)

So before you try to sell make sure the lender is going to agree to allow it.

As has been said, you need to get your tenancy for the cottage wrapped up before your credit rating is adversely affected by mortgage debts. However, it may be that you already have a bad credit record from the arrears & that could make it difficult for you to rent if a credit check is done, unless there is someone who could act as a guarantor.

I think you are likely to get more detailed (& hopefully free) advice from the Debt Agency you have consulted than from seeing a solicitor, which will cost you & many (perhaps most) solicitors are not really in to detailed knowledge of debt related matters.

If you do end up with a lot of mortgage related debt & no prospect of paying it off bankruptcy may be worth considering. The Debt Agency would be able to advise you on this.

[chrissa1]

Thank you Themas for your helpful and detailed response.
I was speaking to my mortgagee this morning and they are going to market and sell Both properties for me while allowing me to stay in my home for up to 6 months. Their offer stops all late charges and also I won't have to pay early redemption fees when it is all over.
They said they would be looking to get the maximum they can for the properties which sounds a better bet than the Quick Sale option.

[themas]

I'm glad for you - they certainly seem to be acting in a much more helpful way than I think some lenders would.