J
Jackiew4
Guest
Hi,
We have a mortgage and Secured Loan that we have arrears on both of them.
The mortgage company has applied and already got a warrant of possession, they don't really want the house and have said they wouldn't get a warrant if we came to an agreement with them.
The problem is the agreement; the mortgage term left is 19 years, there is a secured loan on the property for £40,000.
We have advised them hat the secured loan company has also a warrant of possession against the house.
The secured loan company will not take less than the monthly payment amount which would mean we would end up paying them more than the mortgage amount each month. We have explained to the Mortgage company that if we tried to pay them less each month, as soon as the house prices went up, they would seek eviction and take the house ( i have read what they have done to other people in our position).
IF we pay both amount (that's if the mortgage people agree to us paying them less per month than the secured loan) i am worried that we will end up with a house we still owe on in 19 years.
The mortgage company seems happy for us to pay only interest only payments for 13 years, until the secured loan has gone. But what worries me is that we are then left with a £145,000 amount that has only had the interest paid off on it. They then would expect this whole amount to be paid within 6 years.
I know most people would say you should do anything to save your house, but i don't know if i want to live in a property that after the 13yrs we would have to sell anyway. Plus, no-one can guarantee what it will go up to and if the interest rate goes up in the meanwhile we could end up with large interest payments which we will not be able to afford.
Sometimes, i feel it would be better now to walk away, the mortgage company would get all there money back, but none for the secured loan.
Any comments, would be gratefully received
We have a mortgage and Secured Loan that we have arrears on both of them.
The mortgage company has applied and already got a warrant of possession, they don't really want the house and have said they wouldn't get a warrant if we came to an agreement with them.
The problem is the agreement; the mortgage term left is 19 years, there is a secured loan on the property for £40,000.
We have advised them hat the secured loan company has also a warrant of possession against the house.
The secured loan company will not take less than the monthly payment amount which would mean we would end up paying them more than the mortgage amount each month. We have explained to the Mortgage company that if we tried to pay them less each month, as soon as the house prices went up, they would seek eviction and take the house ( i have read what they have done to other people in our position).
IF we pay both amount (that's if the mortgage people agree to us paying them less per month than the secured loan) i am worried that we will end up with a house we still owe on in 19 years.
The mortgage company seems happy for us to pay only interest only payments for 13 years, until the secured loan has gone. But what worries me is that we are then left with a £145,000 amount that has only had the interest paid off on it. They then would expect this whole amount to be paid within 6 years.
I know most people would say you should do anything to save your house, but i don't know if i want to live in a property that after the 13yrs we would have to sell anyway. Plus, no-one can guarantee what it will go up to and if the interest rate goes up in the meanwhile we could end up with large interest payments which we will not be able to afford.
Sometimes, i feel it would be better now to walk away, the mortgage company would get all there money back, but none for the secured loan.
Any comments, would be gratefully received