Repossessions

I imagine it doesn't look great on your credit report! In fact, I'd be surprised if anyone offered you a mortgage again.

this, is a big mark on the credit rating...

Im past caring about that! I wont be getting another mortgage now im married, and seeing as though he's forces we get a house to rent wherever he works... Its all moine, nothing to do with H. Im just going to be in so much negative equity ☹️ Price has dropped enormously.

I think you have to be in quite a pickle to have you house repossessed. You may never need a mortgage again but things like car loans, credit cards will never be offered to you or you may have to pay higher interest rates.

I know you say now you are married etc. But the worst can happen to anyone and you may find yourself divorced/widowed in the future. From that perspective you should keep your financial integrity to support yourself and/or children in the future.

Could you rent the house out, and then sell once the house prices go back up again?

Nope, i sold my soul to the devil its a shared owndership.

Perhaps you ought to talk to your bank about the fact that your in negative equity and paying the mortgage is not an option and see if they can come up with any ideas.

Missus S we're also in negative equity but repossession is not something I'd consider unless it was forced on me.

It creates too many problems down the line.

Can you rent that house out?

You can't rent out shared ownership?!

This is a good idea.

You may also find the lender is willing to allow you to make repayments to cover the negative equity over a period of time. I think even with a repossession you will be liable for the shortfall.

I would definitely speak to someone knowledgable and who can advise how you can come out the other side in the best situation possible.

No, in the lease it says you cant sub let. Its a shambles. I wish id known all this at 21.

If the house is in negative equity, does that mean the part you don't own is cheaper to buy out? Are you allowed/in a position to buy the other share and then rent out?

Or sell?

Or sit tight and wait for prices to increase?

Missus S I know you can't let it out technically, but have you got a friend or family member that may want to privately (and sneakily) rent it off you? Or alternatively as Duckybum said it must mean the share you don't own may be cheaper to buy out completely?

I know you said your H is in the Forces now but you may want to buy your own place once he has retired from the Army and I think with a repossession on your record you will seriously struggle to find anyone willing to lend you anything, even things like your overdraft and credit cards and even debit cards can be affected I believe

Sorry to put a downer on everyones suggestions i just cant see the light at the end of the tunnel. Iv rang CAB and Shelter. Have appointments made.

Missus S I think if you told the HA that you wanted to buy the share you don't own they have it valued at current market values so you wouldn't be paying over what it's worth if you see what I mean. I hope you get it sorted soon though, don't despair!

We almost got our house repossessed thanks to my twunt of a dad who went behind my mums back to secure loans on the house and then didn't pay them. Luckily we managed to sell after two years. We didn't get what we should have and the loan got payed first so my mum lost out massively. It was the hardest time ever and I can appreciate how hard it is but a repossession would affect your credit rating and we would have only done it if we absolutely had to.

I'm really sorry you're in this situation Missus S. I've just been doing a bit of reading and there are loads of people in exactly the same boat. It royally sucks.

I think you need to get your facts in order from the HA too.

How much will it cost you to buy them out?

How much will they give you to buy you out?

Can you sub-let (I know the lease says no but a few have managed it)?

I think this may be worth looking into. Even if its just letting me rent it out for a year. I dont need the stress atm.

From what I've read they only do it in very rare, exceptional circumstances. Ham up your situation as much as you possibly can. It's a long shot but worth a go.

Sorry to hear you're having tough times Mrs S. I'm actually sneakily renting a family members shared ownership property and there haven't been any problems so far. We haven't been there long but I think as long as your are careful it would be fine. If there's anyone you can trust to rent it from you id say go for it.

Sending you a weirdy internet hug and hope that the CAB and Shelter can be of some help.

I'd be very careful renting out somewhere without permission - if the HA or mortgage company find out they'll come down on you like a tonne of bricks (particularly if you've asked permission & it's been rejected).

I'd also be very careful with the place if it's empty - you can run into all sorts of problems with your insurance. You can get insurance specifically for empty properties.

Is it anywhere near us?

No P it's back home unfortunately!

Blast I thought we could solve two problems in one then..

I know! What's an hour and half commute every day? ?

I don't know if this is any help but my flat is shared ownership and when I bought it, the housing association valued it at a certain amount, then when I had it inspected they valued it at a lower amount, so I paid the lower amount. So they should let you buy the part you don't own at the current market value. But then I don't know if they will charge you lots of associated fees anyway. Sorry, that wasn't much help! Fingers crossed for you anyway.

I think your best bet is talking to the HA they may relax contract to let or buy the property back. It may be at a reduced rate but it would be better than a repossession

Sorry you're in such a pickle Missus S, you don't need this right now. I know it's a bit cheeky popping up after not being here for ages to do what looks like pour cold water on a possible solution but I really just want to make sure you're aware that the "sneaky renting out" plan can have serious consequences - you're effectively renting out the property, which is producing untaxed income that you'd have to report to HMRC and pay the appropriate income tax on, so if it's only just covering your mortgage repayments it could end up costing you more. Obviously if you're not working you'll have almost your entire personal annual allowance intact so it might not lead to any tax being payable but you'd still need to do the numbers to make sure you weren't committing tax evasion.

I really hope you find a workable solution.

If your credit rating has had a knock how come you haven't/ or have you considered bankruotcy?

This is what I am frightened of happening to us☹️

A friend of ours has a shared ownership flat and has been given permission to rent it out. They didnt really have any special circumstances either (they could afford the mortgage payments etc), other than they were expecting a baby and want to move into a bigger home. But I dont know what the terms of the shared ownership was. They would rather rent it out than have the home repossessed, so I'd at least ask them and see what they say.

My H and I are in negative equity and in the process of selling our house. We have a shortfall of about £6.5k, but our mortgage company will let us port our mortgage to another property if we pay the shortfall before we move, so effectively another 100% mortgage.

When we werent sure whether we could get another mortgage we rung them up and asked what our options were as we are desparate to move. They basically said if we couldnt afford the shortfall they would just make us pay the shortfall off at an unsecured interest rate of 12ish% for the life of the mortgage, so 30 years in our case, which doesnt work out very much per month. Speak to your mortgage company see what your options are as you never know they may even let you write it off if you are in such bad financial difficulties. Better for them to sell the house and get some of their money back, rather than repossession which will cost them a lot more.

Dont forget estate agents fees are negotiable - dont take the first quote they give you and hammer it home that you cant afford it etc.

Hope you find a solution xxx