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atmywitsend
- Posts: 1
- Joined: Mon Jul 13, 2009 12:30 pm
- Location:
I really need some advice about our situation....
Myself and my husband have found ourselves in a tricky situation through bad investments and the dreaded credit crunch.
Between us we own 5 properties 2 in the Uk and 3 in the USA.
1 of the properties in the UK is our residential home. We currently owe £233k and the current index valuation is $200k. My husband also owns a flat with his brother, which is rented out. The rent just covers the mortgage. They owe £108k and the property is worth around £100k.
We then have 3 properties in the USA, which again are in negative equity. We have put 1 up for sale at a price where we may be able to release some capital, but it has been on the market for 6 months, we have had a total of 2 viewings and no offers. These are rented on holiday let and are just about covering all the bills, but even the holiday let is seeing a decrease in leads and bookings, and we are seeing foreclosure on the horizan.
To add more confusion to the mix, I am a mortgage adviser for one of our main creditors.
I am really at my wits end and am not sure what to do next. If we apply for a joint IVA or Bankruptcy, then I will loss my job and we wont be able to pay the agreements.
I don't want to loss my home and don't know what will happen to the other properties.
At the moment, we are paying for everything and have not missed any payments, but there may come a time in the near future when this may happen.
I would really appriciate some advice on what you think would be best for us to do.
Thanks [V]
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EL123
- Posts: 6
- Joined: Sun Jul 12, 2009 1:37 pm
- Location: United Kingdom
Hi
Looking at your situation it is difficult to gage what advice to give with no aprroximate value of your debt jointly but in regards to your properties.
I would think the best options would be to run through all your properties exact details try and sell as many properties as possible abroad, if you would run through any financial option be that I.V.A, Debt Management or Bankruptcy the courts or the I.P would find it difficult and time consuming to get equity out of those properties in a different country, but would just simply not take on the proposal.
Maybe use the equity that you get from these properties as a guarantee in the future for a Higher return in bankruptcy or an I.V.A making the proposal stronger in the long run.
With your husbands joint mortgage with your brother in law I would say best advice is to do a voluntary repossesion of the property or give the property to your brother in law as their is no equity in the property at the minute and would become a big liability to you in the future should the tenants fall short on their rent or become vacant.
In regards to your job I have handled people with significant debts in the past on a Debt Management Programme, very informaal arrangement so your employer would not be informed and is not a legally binding arrangement, with an I.V.A not to sure on the employment side of it, does seem feasible that you would be able to do one
E.Maddison
