12:26 PM, 18th February 2014, About 10 years ago 15
I have two properties in the North East of England both in serious negative equity, and on interest only mortgages. The vehicle that was in place to pay these off (within the next 4 years) has collapsed and I have no way now of paying the mortgages off.
One is rented with tenants who have just started paying less than is due about 2 months ago. The other has proved difficult to rent and has been empty for 6 months. I now cannot pay the mortgages on either, and am facing repossession.
What should I do? The mortgage company has told me that they cannot offer anything other than someone to give me advice on how to rearrange my own personal finances so that I can keep paying something. I’ve already examined this myself and there is no flexibility here.
I can’t sell them myself as the negative equity is so high I wouldn’t be able to pay the balance off. I have no other assets. I am assuming repossession will happen, is it best to contact the mortgage company and tell them this is the only option? Or what?
I realise I will end up owing them even more after they have gone through the repossession route, but I don’t see any other option. I won’t be able to pay that off either.