do i sell?

[janot]

Tonight I have been advised to sell our home, cried for most of the night, we have negative equity in the form of a mortgage, and massive loan from Picture finance. we took it out a couple of years ago to pay of debts, however same old story it did not cover them all and we are back in a bigger mess than we started in.

Not sure we should sell any advise please? Have kids and dogs and don't know which way to turn. This is the first month i have not paid the unsecured bills and the feeling of sickness is drowning me.

I dont want to not pay what i owe, i just need help.

joturner

[sam73]

I just wanted to make you feel less lonely at 4am in the morning and cannot sleep because debts.
I am going through hard time myself. I can only tell you that if it is all unsecured debts that they bother you you have few option and if this is the first month you missed the payments do not worry you might want to contact a company that deals with debts and they will explain the different option and they will recommend you the best solution according to your situation. National debtline might help http://www.nationaldebtline.co.uk/

Sam

[janot]

Thanks Sam.

I contacted someone last night and because we pay over 40% of our income on our house, we would not qualify for a IVA.

He said sell the house, Rent and then apply for IVA, scared though! Cause I will have to find a deposite for rent and pay solicitors fee's and I don't know how!

joturner

[sam73]

You have to be strong! My mum always used to tell me that when you feel that you have touched the bottom there is only one way: up!!
I am not an advisor unfortunately, I am someone like you tha at them moment the only option is crying. But I believe in better things, I have to otherwise I would go crazy. Try to seek other advise today and if the solution would only be to sell your house, I cannot imagine how hard that can be to accept, but if there is not other solution start to think to a better future. I am really sorry I cannot be of more help, I wish you and your family all the vary best!

Sam

[sam73]

I have just recall an advert of company that they buying your house and they rent it back to you and up to status, with the option for you to buy it back and stay there the first few month rent free!!
You might want to look a little deeper onto this. I do not know any companies but I would imagine if you do a search on internet you might find something. I remeber to see this advert in a local news paper. Good Luck!!

Sam

[MelanieGiles]

Hi Janot

Can you post what the ratio of your mortgage payments and secured loan payments are to your income, as the 40% test is not always a barrier. Also is your main mortgage on a repayment or an interest only basis?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jane.l]

I know you won’t really like to hear this, but we were in the same situation and Picture Finance were just awful with us, they would not let us sell the house. We had actually found a cash buyer and we explained to Picture that if we stayed in the house we would end up defaulting on payments as we could not afford to stay there. They would not “lift” their charge and we had to let the house be repossessed. If they had agreed to the sale they would have got about 2/3 of their money back immediately and whatever we could afford to pay them within an IVA (which is what we looked into)
But they still refused.

We were declared bankrupt last week so now they will get practically nothing[:0]

[jim_h]

just to let you know sold my house to a local company and renting it back off them was paying over 1000 pounds a month now paying 700 pounds still staying in same house only option open to me house was days away from being repossed owed 136000 pounds on mortage and secured loans still owe 16000 pounds on iva but can afford to pay it know waiting for reply from iva people got a good deal as house was worth 142000 may of been lucky but you will have to seek advice jim_h

[desperateneed]

Hi Janot
I am also in danger of losing my home. My circumstances are different to yours; however, your stress, anxiety and anger of having received 'duff' information from finance companies must be the same as mine. I found this forum a week ago and I have to say that the information, advice and support I have received from the professionals who have contributed has been top-class and because of this all is not yet lost and I am continuing to fight to keep the roof over our heads. The continual bomardment of TV advertisements from companies such as 'Picture', and the idealist picture (no punn intended) they paint is enough to make you vomit, and I wonder if there is a regulating body that should investigate thier rosy claims?
Good luck and very best wishes ...

[janot]

thanks to everyone for there advise, i wish i had known about this site a couple of months ago.

Melaine, our income is £68,000.00 we owe £106,000.00 to C&G on a repayment mortgage, took out a loan for £100,000.00 with picture 2 years ago and a loan from the bank that has 3 years left to run with £17,000.00 outstanding.

On top of that we owe approx £59,000.00 on cards etc.

and beleive it or not 7.5 years ago we had no debt other than our mortgage. (what idiots)we made one bad decision and here we are.

your advise would be great, must be honest have not spoken to anyone today, i am not strong enough, we have no tissue left in the house.

thanks

[MelanieGiles]

Janot

Can you let me know what your monthly income is (take home) and the monthly payments towards the mortgage and secured loan. I can then advise further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ray_a]

just to let you know sold my house to a local company and renting it back off them was paying over 1000 pounds a month now paying 700 pounds still staying in same house only option open to me house was days away from being repossed owed 136000 pounds on mortage and secured loans still owe 16000 pounds on iva but can afford to pay it know waiting for reply from iva people got a good deal as house was worth 142000 may of been lucky but you will have to seek advice jim_h

Hi Jim

Noticed what you have said and was wondering how you were able to do that as you are in an IVA. I was told that if I sold my house and rented it back it would be considered to be a sale of an under valued asset and it could reversed in bankruptcy!

Obviously if you have done this then good luck but I was told it would not be possible and it would be in breach of my IVA!

[janot]

Hi Melanie,

our income in total including sons board and other childs family allowance is £3257. mortage payment is just under £800.00 and picture have just put payment up to £1007.00 bank loan is £435.00

thanks for your help.

[MelanieGiles]

OK - so your housing costs to income ration is 55% - that is too high to be considered within an IVA, and to be honest is far too high gearing in any case. Why these secured loan companies lend this type of money just does not make sense - you could never have afforded that loan.

I recognise that selling your property is a difficult decision, but I also feel it may be the right way forward. You would presumably be able to rent for far cheaper than £1,800 per month.

Have a good think about things over the weekend.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jane.l]

would a sale be possible though? I am just thinking of my experiences!