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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:

FlipFlops4Me · 31/03/2022 07:17

@duvetdayforeveryone

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.

We were a Forces family and we moved a lot (I went to 14 schools due to moves, my sister went to 17). Our parents always set our rooms up first, so that no matter what the chaos we had somewhere familiar to go and to sleep in.

It really, really helped.

NdefH81 · 31/03/2022 07:21

Do not waste your limited time on mumsnet
Get yourself to citizens advice
Today

NdefH81 · 31/03/2022 07:24

@esavian

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.

So you were only on the mortgage?

carefullycourageous · 31/03/2022 07:26

Really sorry this is happening, I wanted to say that whilst it is good to be positive about the future, my advice around your children is to respect and hear their worries and sadness, being careful not to move too quickly to 'make it a positive thing' as for them it really isn't. Their positivity will come afterwards when things settle down again. For now you just have to support them to be calm and feel certain that you will sort it out for them.

What is happening to your family is not easy and I wish you all the best.

NdefH81 · 31/03/2022 07:29

Op your mention your dh will be a “very high earner” from the end of this month

Is this a definite? Or is this a hope? Contract signed and start date?

FTEngineerM · 31/03/2022 07:31

You’ve mentioned getting a rental is ok from a financial perspective but have you actually got one lined up?

When we were looking, because we are selling our house, there were waiting lists of 25-30 people on each one!! In the end I had to do a dodgey back handed holding deposit and not even view the place. It isn’t easy around here to get a rented house, maybe different elsewhere of course.

NdefH81 · 31/03/2022 07:34

You need a rental for two adults and four children, one of whom is disabled

This has to be a fairly specific property. This needs to be your focus

Peppaismyrolemodel · 31/03/2022 08:11

@SilverHairedCat

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?

If uk you will need a guarantee or a certain amount of rent up front, contract which states salary etc, and may ask for references. Don’t worry too much about it ‘looking bad’- it is far far more common than people realise and nothing like the worst financial thing amongst a set set of prospective tenants

dfendyr · 31/03/2022 08:15

Why are you defaulting though???

Surely as dh is now s high earner you can start paying?

SilverHairedCat · 31/03/2022 08:18

@Peppaismyrolemodel possibly during normal times but there are dozens of applicants for most rental properties at the moment. When competition is so high, they can pick and choose their tenants - and a family with a recent history of defaulting on the biggest and most important bill anyone has, with dogs in tow, is going to be rejected when there are less flaky looking options available to them....

I'm worried OP has been poorly advised and doesn't see the potential consequences here.

DogInATent · 31/03/2022 09:10

This thread makes no sense whatsoever.

Defaulting is to miss a series of mortgage payments. That apparently hasn't happened.

You've agreed with the lender to end the mortgage by sale of the property. That's not unusual. If it's by agreement you could have asked the lender for a repayment holiday until the end of the mortgage process, it would just have been added to the lender's take from the auction proceeds. No need to borrow from a friend, no risk to anyone's credit rating.

You've apparently accumulated significant equity in the property, so the lender is anticipating the loan being satisfied with the proceeds of the sale and you'll be able to take a surplus.

You've chosen to auction the property instead of the usual marketing route, yet you have not researched what that means in terms of when you have to be out of the property or what arrangements you need to make for accommodation and when you'll need them. If someone's got a link to the earlier thread about the difficulties of selling this property that would be useful to read again.

What advice did you take before going down this route?

Salome61 · 31/03/2022 09:45

Good luck and best wishes for the future.

Be prepared for the auction house agent to bring a lot of viewers, all at once, there were seven people at one of my viewings. I got texts to let me know when people were coming.

Jmaho · 31/03/2022 10:24

This doesn't make a great deal of sense. You say your husband is now a high earner so carry on paying the mortgage! Don't default! You'll have no chance of buying again in a few years if you default unless you get an adverse credit mortgage
You also mention buying a small flat? Why would you do this? You have a larger than average family and now a very high earning husband??
Renting isn't easy you will struggle to find somewhere if you have dogs
Just drop the price on your property and it will sell. Everything sells at the right price. Selling a property at auction incurs large fees
Calm down a bit. Carry on paying your mortgage, drop the asking price and start looking for a suitable property to buy in an area that you want to live in that is big enough for you all
Your current plan sounds crazy if I'm honest with you and hard to figure out how it's come to this

DogInATent · 31/03/2022 11:52

^ this

Agree a 3-6 month repayment holiday with the lender and pick things up again when the new 'very high earner' salary kicks in.

Adelais · 31/03/2022 12:13

I’m also a bit confused as you said your husband is a high earner so can he not afford the mortgage repayments? You also say you have a lot of equity so is it not an option to downsize and use the equity and get a smaller mortgage?

HermioneGr · 31/03/2022 12:58

No advice but I can feel the relief in some of your posts OP. I wish you all the luck in the world xxx

Hebeee · 31/03/2022 15:07

I'm confused too, wrt your DH being a high earner (potentially?) and the fact you have a lot of equity in the property.....

Can you not ask for a mortgage holiday to sort things out whilst your DH's salary increases? Would that not be better for your family? Perhaps I've missed something....

For those that said you have to have vacated the property prior to the auction - perhaps this is true for a mortgaged house, but we put our last house up for auction and were still living there throughout the process.

We didn't have a mortgage though.

In our case it was a house in a desirable area, but that had issues making it hard to sell.

The viewings on ours were carried out over the month prior to the actual auction and although there were many viewings and quite a few potential bidders downloaded the legal pack, on the auction day - despite being priced to reflect the issues - it failed to sell....so be prepared for that too.

In the end we actually sold for a slightly higher price than the auction reserve to people that did not have their finances in place at the time of the auction (they needed a very small mortgage). It still went through as an auction sale, with immediate exchange and completion within 28 days.

We were fortunate that because we had no mortgage (or other debt) ourselves, we could buy another house straight away for cash. However, the relief of moving on was immense.

Your positivity shines through, OP, and your DC will pick up on this. Good luck to you all.

TatianaBis · 31/03/2022 15:17

I'm really confused. Do you mean a series of defaults of which Friday was the last and the mortgage company have put its foot down? They wouldn't force a sale over one missed payment.

Why aren't you selling via the normal route and repaying the company the missing mortgage payment on completion? Auction fees are high.

MyDcAreMarvel · 31/03/2022 15:24

Agree this is very confusing and hard to advise.

TatianaBis · 31/03/2022 15:40

If you've had your house on the market I guess you may have been struggling with mortgage for a while?

It would be worth costing out dropping the price with the agents versus auction sale because auction fees are higher, the price uncertain, and still no guarantee of a sale.

Finally, moving into a rental in April that you have to vacate in mid May with family including a disabled child will be very stressful. Why can't you organise your rental now?

Finally - renting for 1-2 years in a market that just keeps rising is not wise. You really need to buy as soon as you can.

If you have reasonable equity in the house a cash no chain purchase can go through in under a month.

JuneOsborne · 31/03/2022 17:18

The more I think about this, the less is adding up. How did you not know that renting would be an issue but you found out in the middle of the night?

Are you in the UK?

There must be more to this than you're telling us.

How many mortgage payments have you missed?

How can your DHs credit score be good?

How, if he is a high earner (how high?) Why can't you afford the mortgage?

If your DH is a high earner why is your friend having to sub you so much money?

If you have equity in the house why are you thinking of renting?

NdefH81 · 31/03/2022 17:43

Yes the op won’t be back

Frostylaudanum · 31/03/2022 17:58

Sending you lots of love and luck

aguhiyori · 31/03/2022 19:37

Agree with the other posters here, this makes no sense. DH may well have a high income and a good credit rating right now but if you default on the mortgage (assuming that his name is on it, that is) his credit rating will be trashed.

How have you got yourself into a position where the house is being sold yet you literally don't seem to have anything lined up in terms of somewhere to go?

We need much more information here to give you any kind of sensible feedback, because at the moment none of this makes any sense whatsoever unless you've been given truly appalling advice.

CrocodilesCry · 31/03/2022 20:22

This makes absolutely no sense at all.

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