SheilaMorrissey
New Member
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- 1
I need to sell my house and clear my mortgage. I've only been paying interest for the last few years due to the death of my husband (our mortgage protection insurance had lapsed 12 months prior to his death due to financial chaos and utter stupidity on our parts) and the loss of 1.5 incomes i.e. the loss of his income + a huge reduction in my own income as I became a single parent overnight and had to devote the majority of my time to raising three grieving kids. I am also struggling to pay off personal loans from way back. As I've been paying vastly reduced amounts, the interest is killing me.
Ultimately, I am exhausted physically and mentally and now that the kids are older and almost all independent, I need to get out from under this debt and sort it out and start again. So I'm planning to sell my house which has been valued at 360k, clear the balance of the mortgage plus arrears (180k), clear all personal loans (30k) and be shut of all debt and all financial obligations.
Needless to say, I have not included all reasons for my situation but, in brief, the priority when my husband died was to a) look after my distraught kids (including one with serious mental health issues) and, b) keep a roof over our heads through any means possible.
I know many would say that it's crazy to part with the family home but I know I will never get out of this poverty trap if I just keep paying mininum amounts and not tackling the principal debts. It's been years of poverty and sleepless nights and not being able to afford even the basics, never mind luxuries like holidays or clothes etc. I'm sick of being poor and I'm sick of being stressed and ashamed and feeling like a loser.
After paying debts + auctioneer costs + conveyancing etc I should be left with approximately 130k. I thought of buying a small run down place that I could renovate bit by bit over time. I don't mean somewhere with the roof falling off - I mean somewhere neglected and shabby but fundamentally okay.
Or would it be best to put my name on the council list and rent until a place comes up?
I am exhausted. No judgement please.
P.S. I have spoken to the bank about recapitalising the mortgage but even if they say yes, it would mean a mortage of 1,500k a month until I'm 70. I can't afford that. I'm earning (including widows pension) 2,200 a month.
P.P.S My credit rating is shot to hell. I haven't abandoned any loans or debts, I've simply paid off a lot less per week/month than I should have. I'm not trying to get out of paying what I owe.
Ultimately, I am exhausted physically and mentally and now that the kids are older and almost all independent, I need to get out from under this debt and sort it out and start again. So I'm planning to sell my house which has been valued at 360k, clear the balance of the mortgage plus arrears (180k), clear all personal loans (30k) and be shut of all debt and all financial obligations.
Needless to say, I have not included all reasons for my situation but, in brief, the priority when my husband died was to a) look after my distraught kids (including one with serious mental health issues) and, b) keep a roof over our heads through any means possible.
I know many would say that it's crazy to part with the family home but I know I will never get out of this poverty trap if I just keep paying mininum amounts and not tackling the principal debts. It's been years of poverty and sleepless nights and not being able to afford even the basics, never mind luxuries like holidays or clothes etc. I'm sick of being poor and I'm sick of being stressed and ashamed and feeling like a loser.
After paying debts + auctioneer costs + conveyancing etc I should be left with approximately 130k. I thought of buying a small run down place that I could renovate bit by bit over time. I don't mean somewhere with the roof falling off - I mean somewhere neglected and shabby but fundamentally okay.
Or would it be best to put my name on the council list and rent until a place comes up?
I am exhausted. No judgement please.
P.S. I have spoken to the bank about recapitalising the mortgage but even if they say yes, it would mean a mortage of 1,500k a month until I'm 70. I can't afford that. I'm earning (including widows pension) 2,200 a month.
P.P.S My credit rating is shot to hell. I haven't abandoned any loans or debts, I've simply paid off a lot less per week/month than I should have. I'm not trying to get out of paying what I owe.