remortgage to save some money or give up the house

[h.j]

my husband soley owes our house my valution came back at 75,000 my balance on mortgage is 59,000 and secured loan is23,000 so idont think there is any interest but i dont think i can afford the legal fees to transfer,as we live pay day to pay day ,i have been offered a rented house in the next villiage iknow i still have 18 years left on a dear secured loan so dont really know what to do for the best ihave to deceied to today i dont know if we could remortgage to save some money or give up the house any got any advice

[ray_a]

Hi HJ

I am not sure what your question is but looking at your figures it would appear you have negative equity.

In order to help could you provide us with your income and any other debts so we can see how we can solve your problem!

Regards

Ray

[MelanieGiles]

I assume that your husband is bankrupt and that you are being asked whether you wish to acquire his beneficial interest from the Trustee?

If so, you have to decide whether your property is a house or a home. I use this phrase to determine how important a property is to my own clients.

Those who see the property they live in as a house, probably have no real attachment to the property and see the ongoing mortgages as a millstone around their necks. Those who see the property as a home would do anything they could to fight to hang on to it regardless of the cost.

There is no right or wrong answer to this - just a gut feeling. If your property is merely a house, the you could happily make a home out of the rented property and perhaps even save some money as the rent is probably going to be cheaper than the mortgage and loan combined. And do be sure not to take on any more long-term commitments which are unaffordable.



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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[mikebdomain]

Hi h.j and welcome to the forum

From a first glance it does sound as though you have negative equity – if this is so and if your husband is bankrupt buying his interest from the OR in the property will cost you next to nothing (a £1 in most cases)

MelenieGiles is absolutely right it all depends on whether the property you are living in is your house or home.

That said, it is always worthwhile speaking to a mortgage broker to find out what your options are, they can carry out a credit search, which will tell you what your secured loans, and mortgage balances actually are and may find mortgage products that may save you money. It won’t cost you anything, and may help you make an informed decision.


FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/

Please read our Initial Disclosure Document(IDD): http://www.leybridge.com/Leybridge-IDD.pdf

[MelanieGiles]

And just to add to Mike's note that the Official Receiver will usually sell for £1 but you will also need to meet his and your own legal costs which could be £250 or more. It doesn't sound a lot, but if you don't have it this can seem enormous.

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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[mikebdomain]

Once again Melanie is spot on, however with most remortgages you are quoted a fixed fee for all legal costs, this could include the transfer of interest, and therefor may not cost you anymore than it would do to do a normal remortgage - should you decide to take that route.

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/

Please read our Initial Disclosure Document(IDD): http://www.leybridge.com/Leybridge-IDD.pdf

[MelanieGiles]

You will still have to pay the OR's legal costs - are these likely to be covered by the mortgage lender Mike?

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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[mikebdomain]

Melenie

If the OR can use the conveyancing solicitor, under our agreements yes (not sure about anybody elses agreements) – if not, then no

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/

Please read our Initial Disclosure Document(IDD): http://www.leybridge.com/Leybridge-IDD.pdf

[h.j]

I assume that your husband is bankrupt and that you are being asked whether you wish to acquire his beneficial interest from the Trustee?

If so, you have to decide whether your property is a house or a home. I use this phrase to determine how important a property is to my own clients.

Those who see the property they live in as a house, probably have no real attachment to the property and see the ongoing mortgages as a millstone around their necks. Those who see the property as a home would do anything they could to fight to hang on to it regardless of the cost.

There is no right or wrong answer to this - just a gut feeling. If your property is merely a house, the you could happily make a home out of the rented property and perhaps even save some money as the rent is probably going to be cheaper than the mortgage and loan combined. And do be sure not to take on any more long-term commitments which are unaffordable.



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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[h.j]

would i get in trouble with or if we let the house go ,bein thinkin about it, husband is not best health dont think he can carry paying our mortgage for another 22 years really so want to just cut loses now what do i say to or and house do go about giving up house

[MelanieGiles]

No - but your husband's share of the equity would automatically be paid over to the Official Receiver.

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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[h.j]

No - but your husband's share of the equity would automatically be paid over to the Official Receiver.

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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[h.j]

so how do i go about letting the house go do i ask the or to repossoe the house or just paying loans ask the morgtage company not sure where to start

[h.j]

if i just stop paying the loans how long will it take to get to that stage. when the house is sold if there is a shortfall will they accept montly payments to pay it back or could i get some kind of debt plan

[MelanieGiles]

Let the Official Receiver deal with the house - he will write to you to outline his strategy. If you have negative equity in the property, why are you thinking of selling? Are you able to afford to pay the secured loans on an ongoing basis?

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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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