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Lizzie
New Member
United Kingdom
59 Posts |
 Posted - 26 January 2009 : 18:25:59
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I am hoping someone, somewhere can point me in he right direction as where I go with this problem. Its a long story so please be patient with me.
About 6 years ago my husband and I were going through a rocky patch, which resulted in my leaving and demanding the property was sold, we cashed in the insurance policies and I took my half to enable me to rent somewhere. Anyway to cut a long story short we made up and I moved back into the family home. We did not however take out anymore insurance policies, not really a problem as we never intended staying here. My husband who is 64yrs old had a year off work just over 18mths ago after having a major spinal operation, his company only paid him for 3 months and after that he had SSP and as I was working we could not claim any benefits. I am 59yrs old and work for the NHS but suffered a heart attack last October but am back at work now. I have about £15k owing on credit cards but not a problem as I am working. However, my husband also has debts about £20k and his job is unsafe. I now find out he has fallen behind with payments on some of his credit cards. The mortgage has to be paid off within the next 2 years, we have a mortgage of £80k and I doubt the house is worth £100k, as the renovations we started 4 years ago have unfortunately not been finished and the whole house needs redecorating, I have estate agents coming on Wednesday. We have not fallen behind with any payments on the house or utilities bills and I am not behind with any payments on my credit cards. My husband has two pensions, one private and one from being in the forces. Would it be better for my husband to go BR or let one of his creditor's make him BR? now would it effect me? Would we be better to try and sell the house now and find somewhere to rent or wait until I am 60yrs and throw ourselves on the mercy of the local council? A lot of our debt has come from bailing out our two children who we had late in life. However we are to blame as well for letting things get out of control.
My husband's dream has always been to retire abroad, but I could not leave my children so we need to get this problem sorted. I am worried, scared, depressed and trying to cope with all this worry, I am also ashamed that we are now finding ourselves in this situation.
Any advice or help would be so appreciated |
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 26 January 2009 : 19:02:56
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Hi there Lizzie and welcome to the forum.
First of all i would like to say you are very brave in taking the first step in acknowledging you need help, you have come to the right place and will not be judged at all. Please dont feel ashamed as its obvious it has been situations beyond your control which have now led to this point in your life.
I dont feel experienced enough to help with your situation, however would like to say that a standard estate agents valuation will most likely be higher than a 'forced sale valuation' (the second is used in br, to find out how much equity is in the property - you may find you are in negative equity and in that situation as long as you want to keep the house and can keep up repayments and secured lending on the property then you can normally buy the beneficial interest back off the official receiver for around £212)
With regards to you waiting to see if any creditors make your husband br, then that would take all the control away from yourselves and put it in the hands of the creditors. My personal opinion on this is to keep control, dignity and knowing what is coming round the next corner, then if that is the road you decide to go down you are in control.
Please keep posting and try not to worry too much - your health is far more important.
Take care
Jenny
xx
Onwards and Upwards is the way im going :-0)
From "Moneyworries" to "Movin On" in 3 months is fantastic :-))
xx |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 27 January 2009 : 14:23:35
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| How do I go about getting a forced sale valuation? can I get one from the estate agency's who are coming round tomorrow? or can you only get this once you declared BR? |
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 27 January 2009 : 20:48:53
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When the Estate Agent comes round ask them to give you a valuation based on a 60-90 day sale, this will bring it down.
Also if you do go down the br route, then it may be worth investing in a surveyor's valuation, as they will certainly value your house more realistically.
If you want to have a quick look on what your house maybe worth, try going on Zoopla's website.
Onwards and Upwards is the way im going :-0)
From "Moneyworries" to "Movin On" in 3 months is fantastic :-))
xx |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 28 January 2009 : 11:32:10
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The estate agent valued the house at £100k if we were lucky enough to get a buyer, when I asked about selling within 60-90 days he said we would get less then the mortgage that is outstanding. I obviously did not tell the estate agent about our debt. The mortgage is due to be paid off in 2 years time, so if my hubby does go br and I can buy back the interest from the OR then things maybe are not so black.
Hubby went off to see the CAB this morning, he has tried ringing them but cannot get through so he has gone there to see if he can get an appointment.
I will keep you updated and thanks for the advice so far  its nice to know there are others out there in the same situation, you don't feel so alone. |
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RHB
Senior Member
1159 Posts |
Posted - 28 January 2009 : 14:05:58
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| How will you pay a 80,000 pound mortgage off in two years though? |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 28 January 2009 : 14:14:01
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Unless we win the lottery our plan is to sell the house and repay the mortgage when the mortgage comes to term and hopefully have a few thousand left over as we head towards retirement and rent somewhere or live in hope that the local council will rehouse us.
I cannot look ahead at the moment, its really one step at a time by solving one problem at a time and at the moment my husband's debt is the problem we have to get solved first. |
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RHB
Senior Member
1159 Posts |
Posted - 28 January 2009 : 16:49:29
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| Just wondering if you might be better off looking to rent now so that all possible shortfall would be included? |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 28 January 2009 : 19:20:55
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I had thought about renting now but what would we do with the house which will be very hard to sell in the current climate, so then we would end up paying rent and still paying a mortgage, at the moment we are not behind on any payments on the house or utilities, its just the credit card debt that is weighing us down and the worry of my husband coming out of work. My job is safe and I can afford the bills on the house but would not be able to pay my credit bills and my husbands if he wasn't working  |
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In debt and nearing retirement
