Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Flip

1 2 3

Original poster

We're loosing our home - what will I need?

68 replies

esavian · 30/03/2022 13:27

Reached the end of the line and we are putting our house up for auction today and defaulting on our mortgage on Friday (with permission from the lenders).

Not looking for advice on how to save the house, we've tried everything and now we just need to make the best of it.

Auction process is six weeks and I have downsized our possessions by over half and will get everything in boxes well before move day.

I think the purchasers have 30 days to complete on the house - does anyone know how this works?

Should we move into rented after it has sold? My friend can lend us the deposit and rent the til the house sale money comes through.

What else do I need to know? We have three children and one disabled child who are very stressed right now about moving. What can I do to help them and make it a positive thing?

Any advice to help me keep from getting emotional? I'm not sad to leave the house it needs work and the area has a higher than average number of addicts, although we have been happy here.

OP posts:

Keepitonthedownlow · 30/03/2022 13:34

That sounds really hard but I hope that it takes some stress from you in the long run . I think the children might take their lead from how you approach things.

At the end of the day, it's only a house. As long as you are all safe and have each other, that's the main thing isn't it.

Original poster

esavian · 30/03/2022 13:37

That's it isn't it, it's just a pile of bricks and in our case, not a particularly impressive one

OP posts:

JuneOsborne · 30/03/2022 13:40

Are you getting all the financial help you can in the form of benefits?

I know you said you are not looking for advice on how to save the house, but I think we need to know more about your situation- what's led to this etc. Because it may affect your ability to rent.

Like a pp said, sounds horrendously stressful.

Arewethebadguys · 30/03/2022 13:41

Sorry no advice but just sending you lots of positive energy to get through the next few weeks. My friend defaulted in 2008 and had her house repossessed. She says it's the best thing that could have happened at that time. The stress and sleepless nights all stopped and she was much happier.

Wishing you and your family all the very best

duvetdayforeveryone · 30/03/2022 13:43

I'm sorry this is happening to you :(

Not the same situation, but when we moved house our son with Autism was very nervous. I made sure all his belongings went in our car and his furniture were the last items to be put on the moving truck. As soon as we arrived at the new home, his room was first to be unpacked/set up. Within 20 minutes his room was near close to identical to the room he had in the old house.

AuntieDolly · 30/03/2022 13:43

Can you auction a house with a mortgage?

Original poster

esavian · 30/03/2022 13:47

@Arewethebadguys

Wishing you and your family all the very best

Thanks for the positive energy, I can feel it already!

We feel the same about defaulting. We have been living with our financial decline for two years now (lost my job because care needs for disabled son increased) and trying to save ourselves has been the most exhausting and soul-destroying process I've ever been through.

This is a new start - we have lots of equity in our house and plan to rent for a year or two then buy again.

I have been waiting for this moment for a long time.

OP posts:

SilverHairedCat · 30/03/2022 13:49

I'm a bit concerned that you don't have a rental lined up - you're going to have to pass financial checks and a defaulted mortgage isn't going to look good. Will you be able to rent?

Original poster

esavian · 30/03/2022 13:51

My husband's credit rating is very good and he is (as of late month) a very high earner-all too late to save us, but renting shouldn't be an issue.

OP posts:

theemmadilemma · 30/03/2022 14:05

Good luck OP, you can almost hear the relief in your posts.

SmallElephants · 30/03/2022 14:13

Have you spoken to shelter for advice?
In my experience finding rentals can also be tricky, be prepared for that, but appreciate you may have enough on plate right now.

DogInATent · 30/03/2022 14:16

Check with the auctioneer, but I believe the property needs to be vacant on the day of the auction. There will be a delay between you having to be out of the property and your payment coming through, you will need some sort of bridging arrangement if you're relying on the surplus from the sale.

Is there a reason you're auctioning rather than selling normally? You're clearly not 'defaulting' as you're anticipating an equity surplus. I've never come across a mortgage that wasn't cancelled without penalty upon sale of the property.

If you can afford it, I would rent as soon as possible. It's much easier moving furniture, etc. between two properties you have concurrent access to.

MrsMoastyToasty · 30/03/2022 14:37

Have you been to CAB or your local debt advice charity (not a company that takes an admin fee) ?

everythingcrossed · 30/03/2022 14:44

Can you sell the house via auction as a going concern with tenants (you) in place? Lots of auction properties are sold with tenants on normal ASTs - at worst, it means you would have a few months to sort yourselves out.

Quitelikeit · 30/03/2022 14:50

In your shoes I would be finding a rental property and moving in ASAP.

It’s going to be very costly getting a mortgage in two years as you will have to go through a specialised lender due to you defaulting.

And to the op who mentioned auction - once the bank repossesses they can decide to sell it via an estate agent and also go to auction if that fails. Imagine the house is worth £100’000 - it sells for 80k but op owes the bank 60k the owners will get the surplus after all costs have been recovered - at least that is my understanding of repossession

SixteenTwelve · 30/03/2022 15:10

@everythingcrossed

Buy and rent back is highly regulated and illegal in most cases

StPaulandTheBrokenBones · 30/03/2022 15:19

I could be completely wrong but I thought repossessions appear on your credit report, in the same way that CCJs and bankruptcies do? Most letting agents will run a credit check, so that could be an issue.

Nat6999 · 30/03/2022 15:20

If you are only just defaulting it can take years before you are forced out, I know you want this over but consider if you would be better off staying, could you swap to an interest only mortgage? Check to see if you can claim any benefits.

GlumyGloomer · 30/03/2022 15:47

@esavian have you posted before about trying to sell your house? Either way I have no advice but just wanted to wish you much better luck from here on out.

Original poster

esavian · 31/03/2022 03:51

[quote GlumyGloomer]@esavian have you posted before about trying to sell your house? Either way I have no advice but just wanted to wish you much better luck from here on out.[/quote]
I have, under a different name, it's been nearly six months and three buyers so far and we still haven't sold.

Lots of good advice thank you, it is honestly so helpful.

So those who were worried about us finding a rental were right mainly because we have dogs but also the credit check issue.

My friend has lent us the mortgage payment for this month so we don't default and dh gets to keep his good credit rating. She has also lent us a deposit and first month's rent. She is an amazing friend and I am grateful.

DH has a friend who has a house he isn't using until mid May and we have arranged to move in once our property goes up for auction.

I thought we may actually be homeless for today which has wrecked any strength and positivity I had and left me with puffy eyes from excessing weeping.

I am trying to keep it business as usual for the kids and just said I was stressed because there is a lot of admin to selling a house and it had got on top of me.

I am viewing a couple of places tomorrow to buy, one shared ownership and another a small flat. I have been reducing our possessions and following minimalism for six months now, so we will be able to squeeze into a tiny place.

I can't sleep - my ds8 has come into bed with me as dh is away for work. he is just beautiful and I am glad I have his lovely face to look at while I can't sleep.

I am so lucky to have my three kids. I don't want to let them down. I am trying to to make this experience bearable and tolerable for them.

We work well as a family so I suppose that'll help because we are sticking together and love each other.

OP posts:

ReeseWitherfork · 31/03/2022 04:06

Ah OP, sending lots of love and strength your way. These sound like the end of the line, darkest of days, and I think you know when you get past this you’ll have brighter days ahead. Kids are so much stronger than we give them credit for. They’re probably less emotionally attached to the house than you are, and you’ve shielded them from the stress, so they’ll probably think a house move is exciting more than anything else. Will keep everything crossed for you.

SilverHairedCat · 31/03/2022 06:32

How much is your mortgage currently against what you expect to pay in future though? I'm unclear why a high earning person can't pay their mortgage for a month, which is usually cheaper than rent payments.

I appreciate you have equity in this home, so you'll have a deposit etc for the future, but if he's earning over £100k(?) you'll not be eligible for shared ownership.

Have you taken proper advice on this? I'm worried you were going to default on the mortgage by not paying it - you don't seem to have been advised how this would then affect your eligibility to get any more mortgages or pass credit checks.

CuppaTeaNeeded · 31/03/2022 06:46

Are you actually defaulting? As in you’ve already missed several payments? Are you in significant arrears? This information will change what’s viewed on a credit report for advice about the future. Or are you simply allowing the house to go to Auction to clear the mortgage and get out?

We allowed our home to be repossessed in 2012, we didn’t have any CCJs or bankruptcy so we’re able to rent a property (these are the only items that shows on a rental credit check). We were in financial difficulty and we absolutely hated the neighbours so couldn’t stand the thought of staying there after fighting to keep something we couldn’t afford. We were in negative equity as we bought just before the market crashed in 2006. The relief was immense however I think saying you will buy again in a couple of years is probably unrealistic. Once your out of the market it’s almost impossible to get back on go it.

One thing to bare in mind with renting is you never know how long you can stay in your property and what will be available at the time you have to move. Most areas the demand far outstrips the availability so you really need to secure a rental property asap. We’ve been very lucky, we got 3 years in our first rental before they sold and have been in our second for about 6 years now. Other people are not so lucky.

Hope my post hasn’t come over as too negative as I know how hard it is to be in your situation. The sleepless nights and dread of morning but I just wanted to make sure your know the fuller picture.

Polyanthus2 · 31/03/2022 06:52

I think the DCs will pick up on your positive attitude - if you were distressed, panicking, depressed that would influence them. So as long as you are ok I think they will be.

NiceTwin · 31/03/2022 07:07

My dm and df had their house repossessed because of payment defaults.

Best thing that ever happened, although a lovely house, it was like a carbuncle round their necks.

Although houses on their road were going for a fairly high price, they had no takers when it went to market because it needed work and my df was still being greedy on what he would accept.
On auction day it went for a lot less than they hoped, it actually went to someone who had had his offer rejected. He was laughing as he got it for a lot less.

They now live in rented, within their means and are very happy to do so.
They moved out before it went to auction, so it was vacant when sold.

Flip

1 2 3