Unable to maintain mortgage repayments

[PaulB49]

Dramatic changes in our financial income over the past 3 months have severely affected our ability to keep up with mortgage payments with GE Money.

My wife and I have sadly taken the decision to sell our home of 28 years in order to clear the mortgage, pay off debts and move into rental accommodation.

GE Money have offered no help whatsoever and we have been plagued with up to 4 calls a day. Each time they call we speak to a new "puppy" and have to go through our life history again and again and again.

The house is no on the market and we have virtually no income. It is an exceptionally stressful situation and beginning to affect our health and well being, we are at a loss as to what we should do next.

We would welcome any advice as we have found ourselves in a position which is completely alien to us in our later years of life.

[Ell-enn]

Hi here, I'm sorry to hear you have found yourself in this position. How many months in arrears are you?

[PaulB49]

We are nearly 2 months behind. We asked them for a 2 month payment holiday which were advised is not out of the question but they refused. My wife lost her job of 14 years which was a large part of our income and has applied for another similar position but it takes so long to get answers. My small business took a huge down turn in Jan & Feb due to the severe weather conditions (as did many businesses in our area) We have decided that the only way forward is to sell the bungalow but very worried that even with an improving house market this could take time which we do not have. We want to avoid repossession. Paul

[Ell-enn]

Are you able to make any payments at all each month until the house is sold?

 

 

Did your wiFe receive any redundancy payment?

[theoldrouge]

ensure that you are not pressured into paying any unsecured or non priority debts eg credit cards, unsecured loans etc at the expense of your mortgage. Are you receiving any help you are able to claim eg working tax credit? any age related benefits?You can check this yourself on the" entitled to" calculator

Edited March 19, 2014 by theoldrouge
mis type

[PaulB49]

No, my wife had no redundancy. We have enough income at moment to enable us to provide basic needs, utilities etc.

[renegadeimp]

sadly this is typical tactics from GE. They do not care about your circumstances. They just want the money.

[Ell-enn]

No, my wife had no redundancy. We have enough income at moment to enable us to provide basic needs, utilities etc.

 

 

Hi - if your wife was made redundant after 14 years service then she was entitled to redundancy pay - did you take advice on this at the time ?

Edited March 20, 2014 by honeybee13

[PaulB49]

Unfortunately she was employed privately.

[Ell-enn]

Unfortunately she was employed privately.

 

Hi, do you mean she was self employed ?

[PaulB49]

Yes

[Bandit127]

I am very sorry to see that you have reached such a position. Clearly you are between a rock and a hard place.

 

Before you set yourself on this track please be aware that you will need the lender's permission to sell if you are to proceed with an offer below the outstanding mortgage amount. In my case, the lender did not allow me to accept an offer below the outstanding mortgage.

 

Also, (I don't know if your equity is safely above your mortgage) you should know that you will be liable for any shortfall on your mortgage should your sale not cover their costs and the mortgage amount.

 

I would also consider seeking the advice of CAG or another debt charity. (I don't know if the poster above is a charity or offers unbiased advice).

 

EDIT - ignore the bit about "the poster above". I see the "advertisement" was removed as I typed the message.

[PaulB49]

Thank you, the selling price is above outstanding mortgage. There is enough equity to move into rental accommodation but finding a job down here is hard bit.

[Bandit127]

Glad you have sufficient equity to bail out. That gives you options.

 

Can you rent your property and keep your heads above water while you live as a tenant? Is there any way that you can re-prioritise your finances so that you can afford the mortgage and stay in your current house? (Any unsecured debt gets a lower priority).

 

Going in to rented puts you back to step one on a very difficult ladder to gain steps on.

 

If you have explored all options and you only have one way to go then it is the last resort. But it may well be a relief when it does happen.

 

Please consider talking your options through with a debt charity or CAB.