Stay or go

[samsmum]

Morning everyone. Everything is quiet at the moment on the debt front and we're not paying anything but still struggling with household bills. I'd just like some opinions. Just had our house valued and we're now well into negative equity and we also have a secured loan. We could rent somewhere better for about £200 less per month. This one needs work doing that we will never be able to afford. Do we ride it out hoping we can earn more and house prices will rise or cut our losses get rid, go bankrupt and make a fresh start. Just living day to day at the minute but really cant decide the best thing to do. With hubbies heart problems we just want the least stressful way forward

[ken100464]

Re: Stay or go

Most difficult one this and sure others will be along shortly.

For me sometimes you have to go backwards to go forwards if that makes sense.

In the time I have been reading forums (not so long really) and particularly when on MSE the number of times you read a story and its clear to the outsider the home dream is what is actually causing the problem.

Reduce the housing cost however way they could and the budget would come back into balance.

Not so much good having a fabulous car with all the bells and whistles if you cant afford to run and maintain it.

Sadly its a dream the industry pushed and still does because it makes money and because most of the population is or wants to be affected by house prices they sell to a willing audience.

I got knocked off the housing ladder through divorce. My personal finances after the initial start up turmoil have never looked back.

My partner however has tried to maintain a house and the illusion and although the mortgage is paid the upkeep is crippling her.

Difficult one and hopefully a range of opinions will follow mine.

[samsmum]

Re: Stay or go

Thanks Ken. I think you're right that things are often clearer from the outside. I also feel that sometimes actually making the decision is worse than doing the deed. Sounds really stupid i guess but my big hang up is having that piece of paper stuck in the window telling everyone we've failed. I work 2 mins from home so would want to stay in the area.

[PlanB]

Re: Stay or go

Everything is quiet at the moment on the debt front and we're not paying anything but still struggling with household bills. I'd just like some opinions. Just had our house valued and we're now well into negative equity and we also have a secured loan. We could rent somewhere better for about £200 less per month. This one needs work doing that we will never be able to afford. Do we ride it out hoping we can earn more and house prices will rise or cut our losses get rid, go bankrupt and make a fresh start. Just living day to day at the minute but really cant decide the best thing to do. With hubbies heart problems we just want the least stressful way forward

You're facing a life-changing decision so why not start by making two lists called Reasons For and Reasons Against and see which is the longest

It's tempting to think that a voluntary repossession and BR will remove all stress, but moving home is highly stressfull too and you've always put your hubby's health first

Renting a cheaper place sounds like a good idea because the Landlord is responsible for all the insurance and maintenance including any washing-machine malfunction on a Monday morning. On the other hand it's not always easy to get a tenancy if you have a poor credit history or if you are BR and some Landlords are cr@p.

Would you both need to go BR or only one of you ?

[samsmum]

Re: Stay or go

Exactly. pluses and minuses on both sides. We've made so many wrong decisions that we're scared to do it again. We can't even decide what to have for tea so this is a biggie!! We got joint debts so we'd both need to do it. Only way we could either go br or save a deposit for renting is by not paying the mortgage so once we started the ball rolling there would be no going back

[PlanB]

Re: Stay or go

We've made so many wrong decisions that we're scared to do it again. . . . .

Only way we could either go br or save a deposit for renting is by not paying the mortgage so once we started the ball rolling there would be no going back

I doubt you've made any wrong decisions. It's more likely those choices were trashed by the banking crisis which is not you fault.

Not paying the mortgage to save for a rental deposit is a high risk strategy and one I would think twice about. The housing market is a roller coaster but in the long term prices always rise but maybe not as quick as you would like. You won't be in negative equity for ever.

You've had to battle two sets of court proceedings recently and that may have knocked the stuffing out of you which is why you're feeling a bit defeatist at the moment. But you say you're having a quiet time with your other creditors now. If I were in your shoes (and I have been twice over the years!) I'd save my energy for deciding what's for tea tonight and worry about whether Alfie will ever see sense and get back together with Kat

[samsmum]

Re: Stay or go

Agree with all of that but i'm more concerned when Brenda's gonna tell Bob about her brain tumour. Emmerdale all the way at our house
Oh well hi ho hi ho it's off to work i go

[SA Gold]

Re: Stay or go

hey Samsmum,
I'm not sure if this is going to help you, but just wanted to say there are so many people struggling with day to day living its getting beyond. Even families on above average combined incomes are struggling to: pay rent/mortgage, heating, food and fuel/travel to get to work to start the whole cycle again.
Easier said than done, but why not try and have a day, weekend without it churning over in your mind and have a fresh look at it on Monday?
One things for sure, there is top notch advice on AAD.
Good luck.
Missy

[oldyboy]

Re: Stay or go

hey Samsmum,
I'm not sure if this is going to help you, but just wanted to say there are so many people struggling with day to day living its getting beyond. Even families on above average combined incomes are struggling to: pay rent/mortgage, heating, food and fuel/travel to get to work to start the whole cycle again.
Easier said than done, but why not try and have a day, weekend without it churning over in your mind and have a fresh look at it on Monday?
One things for sure, there is top notch advice on AAD.
Good luck.
Missy

Wise words from Missy. Sometimes it's difficult to deal with a problem when so many factors might keep turning round in your head. I also agree that everyone is struggling, including me!

Going BR isn't necessarily the magic bullet that it's sometimes perceived to be. One set of problems are sometimes simply replaced with another set.

Can I suggest your first step to be looking for suitable properties to rent, and making enquiries about their respective tenancy agreements? Don't forget rental agencies carry out credit checks for prospective tenants. Also don't forget that some agreements have a clause that makes going BR a reason for eviction.

[fluffystuff]

Re: Stay or go

Lots of good advice already given Samsmum, no more to add save for whatever decision you eventually come to, make sure it's one that you are both comfortable with.

I agree entirely that most times, the worrying of what to do is actually worse than the doing!

Whatever you decide I wish you all the best of everything.

[samsmum]

Re: Stay or go

Thanks for all the replies. We wouldn't even consider bankruptcy for our unsecured debts....only if we decided to rent as oviously we'll have a big shortfall. We feel no great ties to this house and just need to decide if it worth sticking it out. Our mortgage wont be paid until i'm in my mid seventies so it feels a bit like we're just renting it from Norther Rock(NRAM).

[PlanB]

Re: Stay or go

We feel no great ties to this house and just need to decide if it worth sticking it out. Our mortgage wont be paid until i'm in my mid seventies so it feels a bit like we're just renting it from Norther Rock(NRAM).

Does this mean you're on a repayment mortgage because if you changed to interest only for a few years the monthly repayments would drop dramatically

[samsmum]

Re: Stay or go

They let us switch to interest only for a year. This is due to run out next month and they've said we can't extend it, therefore our payments will increase by about £200 pm

[PlanB]

Re: Stay or go

They let us switch to interest only for a year. This is due to run out next month and they've said we can't extend it, therefore our payments will increase by about £200 pm

I would ask them to extend it for a further year since the CPR Pre-Action Protocol for mortgage possession proceedings dictates that they should consider the following: (1) extend the term of the mortgage (2) change the type of the mortgage (3) defer payment of interest due under the mortgage.

If the lender insists (and you can challenge it) on keeping it as repayment mortgage then ask them to extend the length of the current term to 25 years which would bring down the payments.

Read this and if you do write to them send them a copy of Point 7

http://www.justice.gov.uk/courts/pro...tocol/prot_mha

If they don't co-operate then you can make a complaint and take it to the FOS which takes a hard line on this issue with lenders who prefer to let you get into a financial mess so you get repossessed ignorant of the fact that the lender is supposed to have prevented it in the first place.

[samsmum]

Re: Stay or go

Thanks I'll have a read of that. They did send us a letter 3 months ago saying to help us prepare for the increase in April we could start inreasing the payments gradually from December. We declined their kind offer