Selling in Negative equity

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It probably would help to have more details.

This is becoming difficult . I may have to PM individuals .

It is very difficult to offer advice on this one but here goes....
£70 doesn’t seem very much for a house, an interest only mortgage would, I think, cost about £300/mth. Maybe less.
Less probably than renting another property.
Could they go to an independent mortgage advisor to see what sort of deal they could get. They can be very creative!
You say they have left the house so have they moved to a different area? Don’t they want to live in the house anymore?
/

My SIL's father has declared himself bankrupt twice and does not seem to be short of a penny or two right now. I wonder where I went wrong!?

DD is in negative equity and it is indeed a right pain. It is on their cramped home but moving to a larger home is a bit of a challenge just now.

CAB look like a good route to go down.

I think that bankruptcy might be preferable to a lifetime of debt. Quicker to recover from, not that I know if this is an option in these circumstance but worth exploring.

What a dreadful situation and very worrying for everyone involved. I agree that CAB and the national debt line would be a good place to offer advice - it used to be that if you were making even a token contribution to your debts this would have to be accepted but I don't know if this applies to mortgages. Bankruptcy is the very last resort if it can be avoided. I hope it gets resolved soon.

I would go to the CAB. the other thought I have is that if someone goes bankrupt then they can walk away from the debt. This might be a possibility, of course it messes up your credit rating but it can be sorted out over time. Perhaps post on Martin Lewis website, there is bound to be someone who knows the best option. I know someone who just walked away from 50K negative equity and survived.

No need to rent anywhere else . It would be enough just to be able to walk away with a long term loan for the shortfall (but can’t sustain a massive monthly payment) .

Thank you glammanana

change the mortgage to a buy to let and use the money raised for a deposit on the next home with the rent helping to pay the mortgage.Or use the money raised to rent a new house.I wish them well.

I have PMd you gilly

Gillybob, so sorry to hear this. I have no experience of this sort of situation, but, would it be possible to rent out the property, so covering the mortgage costs, and wait until the market recovers ? That is of course assuming the mortgage lenders would be willing to go along with an arrangement such as this. There will no doubt be someone who has a more constructive answer.

Maybe a debt advice service would have information, or a free initial visit to a solicitor, or Citizens Advice Bureau.

I remember this was a big problem in the 80’s. Many people lost money including a good friend of my daughter, they had little choice but to sell as they were separating.
Have they considered letting the property as rent woukd contribute towards the mortgage until things pick up?
I wish them well.

My DD and SiL were in a similar position at the beginning of the recent austerity period. They tried renting out their property when they couldn't sell for the price they wanted. Unfortunately they got a bad tenant who trashed the house, making it look like a break in. The estate agents who were supposed to vet the tenants didn't do their job! As a result they had to sell at auction and are now renting and also paying off what remains of their mortgage. They went to CAB for advice and then worked out a repayment plan with the mortgage lender. They have four children, and are only on one income as DD home educates them. It's a constant struggle for them. We help as much as possible, but it's becoming increasingly difficult as DH wants to retire, but is staying in work to help them out.
I hope your problem can be resolved with better results than ours.

I can read between the lines here gilly and can only say how very sorry I am.
I think expert advice is needed here, CAB or similar, we are not knowledgeable to be able to offer the right advice.
My heart is very full for you.

What a hellish situation to be in. Banks have a lot to answer for when they lend money in situations where negative equity is a real possibility.

I’m with Martin Lewis...remember the banks are only in business for one reason. Sorry that’s no help gilly .