should i still pay mortgage

[scaredkez]

i have had letter off land registry saying there is a restriction order now on the house so we can't sell it because it is in the hands of the OR, my question is, i am finding it really hard to find anywhere to rent without paying 6 months up front, i have tried the private landlords but none at the present for the area i want, we are still paying the mortgage on our house, i have tried to contact the OR but she is never there and now won't be back till later next week, should i continue to pay the mortgage as it is more or less all up to date, or stop and save for the 6 months deposit that i will need for my rental, the house is going anyway or do you think i will get in trouble with the OR who i can't contact til next week, its just that the mortgage is due again on tuesday and would like to make a decision before then as to which way we go, plus i don't want northern rock to move in and chuck us out for not paying.
thanks kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Kerri - You have to be commercial and now prioritise for your family. If you have to find a six-month rental deposit, and the only way of doing this is not to pay your mortgage, then so be it.

Once you have missed more than three mortgage payments on the property, the mortgage company have the right to proceed with possession proceedings.

Have you thought about exploring mortgage opportunities for when you are both discharged from bankruptcy? It may be possible to do a deal with the OR to buy out your own equity after the first year, on the basis that the costs of possession would outweigh any benefit. I am sure that you would be able to get a 90% loan to value mortgage after bankruptcy - Welshboy can confirm this if he is around - and this would avoid you having to move. You would, of course, have to fund higher mortgage payments, and thus compare this to the amount you would be paying to rent.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adrian Ratcliffe]

Hi Melanie,
A company called new deal finance claim to be able to offer 95% to discharged bankrupts from day 1.
www.newdealfinance.co.uk
01732362222

worth a look at.
Regards
Adrian

[Welsh Boy]

Adrian

Just took a look at their site, I don`t think it quite works like that unfortunately. Tony

[coco]

Hi Kerri,

I have not paid my morgage now for 2 months but i am handing the keys back to the mortgage people at the end of july to save them proceeding with court etc. I have too tried so many times to get hold of the OR to explain what i am doing but no response i have a few weeks now then it is finally over. I am the happiest i have been in nearly 2 years and i think the house holds to many unhappy memories so i wont be shedding any tears. I understand what Melanie is saying but i have looked into this as well i could wait until i am discharged and try to remortgage but in the meantime the house prices will have gone up the mortgage payaments would be alot higher including the higher interest rate for being BR etc. and i would then be finacially on the border line not being able to meet basic needs so would be back to square one. Good luck with your decisions Kerri

xx

[Adrian Ratcliffe]

Hi welshboy,
Ye I have had a look at the site it makes no point on there I got a flyer through regarding it.What do you think max LTV is high (norm 85% max)?

Adrian

[scaredkez]

hi everyone thanks for the replies,
coco- glad everything is moving forward for you and that you are a lot happier.

melanie- we have weighed the option up the re mortgage, but renting is far cheaper, unfortunately the house prices here are going through the roof so in 12 months time i don't think we would be able to afford the remortgage, the area were we are looking to rent are offering 4 bed houses for less than my mortgage now, just need to raise the deposit. and then possibly in a few years look to get back on the property ladder and hope there has been a huge price crash, but thanks anyway, its still always an option.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Welsh Boy]

Hello Adrian

I am finding that lenders are reviewing what they offer almost on a weekly basis, high street lenders are starting to trawl the market for the very clients 15-20 or even 5 years ago they wouldn`t entertain. The amount of different products is vast and lenders are becoming more aware of the margins involved with this type of lending and after all they aren`t daft they know what is a risk to them and lend accordingly. -Tony