House Sale/F&F Need advice URGENTLY

A question about : House Sale/F&F Need advice URGENTLY

Hi Folks,

First time on here but I'm hoping you guys can give some good advice.
To make a long story short this is about my house sale and making a full and final settlement.
My house was up for sale for almost year and a half. My hubby lost his job 4 years ago.
We contacted mortgage company when putting house up to sale. We have paid out mortgage up until now, give or take a few late payments.
Eventually an offer has been made on my house 70000 less for what we mortgaged it back in 2006. We are waiting to hear from our mortgage company to see if they will accept this offer. Also our solicitor has put to them that we make a full and final settlement of 10%.
Im currently off work after a baby at the minute. Im a complete stresses out wreck with all of this. The next week or two we should hear some news. We have a Financial Advisor and an experienced solicitor working on this with us.

Now after 4 years my hubby has picked up temp work for a few months but we don't want to disclose this as we feel we are to near the end. we just opened another account an put his wages into it. This work is only temp. It is essential to move for family and my childrens sake too as well as affordability.
Id appreciate some of your thoughts and experience/advice.

Best answers:

• I must admit, I've never heard of F&Fs on mortgage shortfalls to be honest but I'm sure more folk will be along who know more about it that I do.
  The only thing I do know on a shortfall is that they have 12 years to pursue the debt. So it may not be in their interests. So dont bank on it.
• Also, you usually find there's a shortfall when the house has been repossessed and sold by the lender which isn't the case here - as you're choosing to accept an offer less than your outstanding mortgage, I'd be very doubtful that they'd accept a F&F on the shortfall .....
• Usually F&Fs are for debts which have gone into default and the creditor has little hope of getting paid.
  You havent gone into default on your mortgage otherwise it would then be a repossession.
  Not sure your doing the correct thing by hiding wages either, have you spoken to your solicitor about this.
• we just met the solictor for first time last week. we didnt say anything at meeting but we are ringing him tomorrow to let him know.
• Best of luck.
  Factsheet here
  Factsheet | Negative Equity - what can I do if I want to move?
• I should mention im in northern ireland where house prices are down 55%
• 70k loss, the lender isnt going to take that hit
• Looks like my 10% offer may not work, what do you think would be a more appealing offer to the lender?
  Im happy to rent for a few years but I will want to buy again.
  This move is soooooooo important to us for family reasons.
  im really lost on how I can work this out a good way. Its will take at least 15 years may be 20 before Id see the money back on this house.
• Is your hubby working now?
  Is there no way you can stay put for a couple of years and hope things improve? (obviously will depend on whether your income meets your expenditure)
• I really am starting doubt this process we started but it was all as a result of my hubby losing his job 4 years ago.
  My 3 bed house is only worth half of what we paid and it pains me that we are paying such a large mortgage for a standard house. The offer we have at the minute is very realistic to the market at the minute.
  Yes my hubby is working but it is temp ,only a few weeks.
  Any advice we have taken is that the house market will not recover here for 20 years.
  Part of our reasons to move apart from affordability is to be near my family who need my help and also our childrens schooling.
  Im soooo stressed have we done the right thing starting this process.I can't believe we are in this situation. We are good hardworking educated people who only wants to live an easy simple life.
  Have we done the wrong thing in trying to sell our house and make a F&F? :-(
• I think a lot of people forget that their house is their home- irrespective of the value of their home!
  If you can afford the monthly repayments then unless you need to move because of increase in family size/lack of space for example then why worry about any negative equity. It is only paper money - it only becomes physical money when you try to realise the value of the asset. Even if the amount seems extortionate in comparison to the value of your property now it will eventually be yours in 20 or so years and you won't have paid rent unnecessarily. You say that is it essential to move for family reasons but at the end of the day you will still owe Ј70k to the mortgage company who most likely won't want to take the loss. It's a tough call but will you really save that much by selling and moving? - it all depends on how you look at the bigger picture.
  There are very few people who have not been affected by the drop in market value of houses but it seems as though those who purchased with a large mortgage are the worse affected. But even we (who are considering downsizing now that the kids have left home) have to set our sights lower because of the corresponding re-valuation of the market,
  Swampy