DMP can u include the negative balance if you sell your house at a loss?

[Scruffyhound]

Hello I live with my partner in his house whilst I rent mine out. that was fine but my tennant is moving out the end of this month. I have taken a loan already to keep us a float with childcare and the shortfall for the mortgage. The house is up for rent with 2 different letting agents +one of them only just putting it on). I thought my house was worth about 103 k but the estate agent said 95K!! I owe 107k on my mortgage. Im looking for jobs back in that area but it means disrupting the family again. My self and my son have moved 3 times already and hes doing really well at this school. We live down here for my partners job and I work in a low paid job but gey school holidays off keeping the childcare down. My question is can I take the shortfall if I sold the house for 100k and put the 7k plus solicitors and estate agemt fees on the DMP? If so how does that work? Thanks.

You can put the shortfall on, but not sure about estate agents and solicitors fees. Have you spoken to one of the debt management charities such as Stepchange?

"My question is can I take the shortfall if I sold the house for 100k and put the 7k plus solicitors and estate agemt fees on the DMP?"

I don't understand what you mean by "take the shortfall"? The negative equity becomes another unsecured debt after the sale of your house and can be included in a DMP. You may find it impossible to get an estate agent or a solicitor that will deal with a sale in negative equity without cash up front.

If you already have a DMP and you are now looking at 7-12k of negative equity plus EA and solicitors fees and you are on a low income, you need some advice on your whole debt situation. You may need to consider bankruptcy or a Debt Relief Order. I think you should explore your options (this site looks at the all debtcamel.co.uk/debt-options/) and then talk to a charity - your local Citizens Advice Bureau www.citizensadvice.org.uk/index/getadvice.htm for face to face advice or National DebtLine www.nationaldebtline.co.uk/england_wales/ on the phone. If you have a DMP with a firm that doesn't charge you anything (StepChange or Payplan) then talk to them.

(I don't make any money from any links in my posts)

Hello thank you very much. The debt has been to cover for the shortfall of the mortgage and childcare costs. I took it out as by next year things would improve with our financies. The problem we have now is out of the blue my.long term tennant has given her notice. I have the property up for rent with 2 agents and Iam filing for a DMP. As I need to cover the mortgage payments (589 pm). Im hoping it will rent within the next few months?! If not I need to cut my losses with the house as its costing way too much to keep on. I was hoping to rent it out for another year and hope prices go up. But in the event it does not I need other options. This whole thing sucks and I told my partner what happens if my tennant does not rent and were short? I live in his house his step dad gave him the money for a deposit. I said no rent as I dont know what will happen with mine. He did not listen. So I m here with him in his house(I moved as he worked for the family buisness) and our little boy andy other son from my prevous marrage. Im normally a sensible person and really get fed up. Im looking for jobs in that area so I cam move back so I hope the DMP will sustain us until a solution comes up. Either some one rents or I move back or I could sell and make a loss. My head is fried. tThanks

Sounds like you need to find a tenant as selling is really not an option. Cut the rent price as low as you can if it doesn't rent quickly.

Forgot to say, if you speak to so done face to face I advise you to:

1. Keep it relevant. Money advisers have limited time and it's not helpful to thrown in a lot of stuff to do with your partner and children. Just keep it relevant.
2. Be realistic. You can't ask someone to advise you based on "what if". It really isn't helpful to panic about not finding a tenant. Focus on the immediate issue first and don't delay doing a DMP (if that's what you think is best) because in a year's time your circumstances may have changed.

Good luck

Do you mind saying how much your non mortgage debts add up to?

And who you are talking to about a DMP? You should only go for a DMP with either StepChange or Payplan - don't sign up with any company that is going to be charging you money - StepChange and Payplan charge NOTHING so all your money goes to your creditors each month. See this page on DMPs for more details debtcamel.co.uk/debt-options/dmp/

I don't think you should rent the house at a loss. What if the boiler stops working or the guttering needs mending etc etc? You can't afford to take a loss each month when you have a tenant that is paying - that leaves you with NO reserves to cope with tenants leaving, failing to pay rent because they have lost their job, or repairs being needed on the house.

If you can only sell at a large loss, your best options may well be to move back (and personally I wouldn't walk out on a relationship because of this, so i would rule that out unless the relationship is already difficult) or hand back the keys and go bankrupt.

Thanks everyone. I havr an interview today near where my home is. The financial aspect is enough on its own. I dont want to leave my partner it would very stressful. But my other reasons are my parents my dad is mentally ill and my mum has aged. I need to move back for them as well. My family are there we get no help down here. My partners mum is a weirdo and him and his mum have not spoke for 1 1/2 years now. I know thats not money issues but they are situations that sway the decission as well. Thanks