Sell and rent back with an IVA

[dietc]

Has anyone got any experience with sell and rent back agreements... i have had an IVA on my name for a few (2) years now and am struggling again with mortgage repayment as I've lost my old job. I'm now self employed and doing OK but i could do with some breathing room and reducing my mortgage is an option that my pal suggested... he's using a the company *name deleted - advertsing not allowed* - has anyone heard of them, are they trustworthy?

Thanks for any help!

DC[:0]

[rayb]

Hi,

Myself personally I would not touch people like that with a bargepole as it could be highly likely that you sell it to them, and then they give you a short rental period and kick you out.

Could you not speak to your Mortgage Company and see if you could transfer to an Interest only for a period to help you out?

[kallis3]

I had to remove the name as advertising is not allowed on the forum.

I would be very wary of using this scheme as you will not get back anywhere near the value of your house, the rent may be high and there is no guarantee that you would be able to stay there as I believe that their conditons are quite stringent.

If you are truly struggling with your IVA, then I suggest that you speak to your IP to see if you can get a payment reduction. I would also speak to your mortgage provider and try to come to some arrangement with them.

[dietc]

ok ok ok... thanks rayb!!!!liking the idea...

Ive asked them to lower my payments and have made them aware of my situation but... I'm not on the best terms with the mortgage company as they've moved my correspondence over to the collections... i think they have repossession in mind for me... grim grim grim.

[dietc]

thanks kallis 3... Never thought to try n reduce my IVA... thought it was as low as it could go... a guess a phone call is in order...

needed the kick up the ass... (understood bout the link, thanks!)

[kallis3]

If you think they are going to reposses, have you thought about bankruptcy at all? Any shortfall in the mortgage would then be included in the bankrutpcy and you can start again.

[Rainbow]

Hi Have you investigated the possiblity of the Mortgage Rescue Scheme and I know that this week the scheme has been expanded see copy of info below
Mortgage Rescue Scheme
What is it?
A new £200m package of measures designed to prevent some of the most vulnerable families losing their homes and experiencing the trauma of repossession. This scheme is aimed at those who would be eligible for homelessness assistance and is subject to a range of eligibility criteria. £200m will avoid up to 6,000 repossessions across England.

Our mortgage rescue package has three elements:

Shared equity
This is designed to help householders who have experienced payment shocks and need some help in paying their mortgage.
Government Mortgage to Rent
This is designed to help the most vulnerable households on low incomes with little chance of sustaining a mortgage.
Why are we doing it?
The international market turbulence is creating a challenging environment in the housing market, interest rates have risen and the government is determined to take action to help those facing repossession. These measures build on our existing work, which includes £10m for guidance and an expanded network of court desks to provide legal advice for households at risk of repossession. But we are now going further to launch up to 6,000 mortgage rescues for those most likely to need state assistance were they to be repossessed.

How will it work?
Mortgage Rescue will operate by bringing together local authorities, Registered Social Landlords (RSL), lenders and debt advice agencies. The two elements work in the following ways:

Shared equity - RSL provides an equity loan enabling the householders' mortgage repayments to be reduced.
Government Mortgage to Rent - RSL clears the secured debt completely and the applicant pays rent to the RSL at a level they can afford.
The level of grant to a RSL will be determined using the Housing Corporation's value for money assessment criteria after a Money Adviser has advised on the most appropriate route after establishing a household's affordable housing costs.

Who will it help (and how many)?
This scheme will not help those who are in negative equity. It is subject to a set of eligibility tests. Depending on individual circumstances, there are two possible options for those eligible:

Shared equity
Those who have an equity share in their homes and are facing a payment shock from remortgaging and/or higher living costs but likely to retain current income.
Government Mortgage to Rent
Those who are unable to meet lenders' requirements eg those on unstable incomes. Those who are more suited to social tenancies.
The scheme aims to help up to 6,000 vulnerable households over two years.

We have worked with the Council of Mortgage Lenders (CML), the Housing Corporation, the National Housing Federation, local authorities, Money Advice agencies, and RSLs to develop the mortgage rescue proposal.

It was announced as part of the Pre-Budget Report on 25 November 2008 that the scheme had been enhanced to cover vulnerable families at risk of repossession because of additional loans secured on their home. Often families are more likely to default on these loans because of higher interest rates.

When is it available?
Communities and Local Government is working alongside experts from the lending sector, local authorities, money advice sector and Registered Social Landlords to ensure that the Mortgage Rescue scheme is available as soon as possible. We are in the process of fast-tracking the scheme through a number of local authorities, before rolling the scheme out nationally, and we expect them to start taking applications from the beginning of December. The list of authorities is provided below, however please return to this page and check for changes, as this list may be updated.

If you have any further questions please refer to the frequently asked questions (below).

Fast tracker authorities
South West
Salisbury (SW)
Penwith
Plymouth
Sedgemoor
Plymouth
Weymouth
South East
Cherwell (SE)
Tunbridge Wells (SE)
Tonbridge and Malling (SE)
Slough (SE)
Maidstone (SE)
Dartford
Shepway
Eastbourne
Portsmouth
Rother
Gosport
Guildford
Adur
Worthing
Wycombe
Wealden
Crawley
Hastings
London
Lewisham (LON)
Waltham Forest
Westminster City Council
Havering
Greenwich
Harrow
Hillingdon
London Borough of Camden
Brent
East
Broadland
Bedford
Basildon
Fenland
Mid Beds
Brentwood
Norfolk
East Midlands
Northampton (EM)
Leicester (EM)
Rutland
Nottingham City
Kettering
Staffordshire Moorlands
West Midlands
Solihull (WM)
Warwick
Worcester
Walsall
Dudley
Stratford
Stoke On Trent
Birmingham
North West
Wigan (NW)
Preston (NW)
Oldham (NW)
Ellesmere Port and Neston
St.Helens
Wirral
Blackpool
Knowsley
Trafford
Manchester (NW)
Ribble Valley
Shefton
Yorkshire and Humber
Doncaster
Scarborough
Wakefield
North East
Stockton (NE)
North Tyneside
Darlington
Middlesborough

[kallis3]

Thanks for that Rainbow. That's a useful thing for us to know.

[MelanieGiles]

Whilst sale and rent back has had extremely bad press of late, and anyone considering this ought to be extremely careful and make sure that all of the small print is checked out bu a lawyer, there is a place for this in certain circumstances and there are reputable companies providing a good service out there.

[kallis3]

Trouble is, you've got to sort out which are the reputable ones, and that's not always easy.

[David Mond]

Need to find out from Government sources who are offering this - it appears at first blush useful.

[Rainbow]

Hi David below is the link from the Local Government web site regarding the mortgage rescue plan - Also it was announced last week that they are extending the scheme and reducing the arrears period to three months.

http://www.communities.gov.uk/housing/b ... emeasures/

[Rainbow]

Forgot to say from the information I have if someone is threatened with Homelessness due to mortgage arrears they approach their Local Council for assistance and it is the Local Council who have access to the scheme and they make the contact with the Housing Association etc.