how to pay mortgage shortfall (halifax)???

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This is a bit complicated, but here goes...! Husband and I hae 2 mortgages .(both in joint names) First one is with Coventry b.s. for house we live in, everything o.k. with this one, ie no arrears etc.. but no equity in property.

Second one is with Halifax for our previous home, we have since rented out on and off for last 9 years. The problem is we have always have great difficulty finding tenants for the house, (everyone in our area seems to be doing the same therefore there is a glut of rented houses about) therefore most of the time we are struggling to maintain mortgage payments with no rental income.

When we do occassionlly find tenants, despite taking bonds/refs etc.. they normally rip us off, trash the place, mess us about etc or we are waiting months on end for housing benefit payment for tenants on d.s.s.. Only last year I had to spend 700.00 I didn't really have in legal costs sorting out one particularly nasty tenant who did not pay their rent.

My husband and I have now decided enough is enough on the renting front, and cannot cope with any more hassle.

We would like to try to sell the rented house in the next few months. We owe approx 23K to Halifax and house is only worth appox 15-17K. The big problem is we also have many thousands owing in unsecured debts and last year enrolled with a debt management company to reduce payments with a view in the long-term for them to sort an individual voluntary arangement.

Clearly we have no chance of applying to borrow money to cover the shortfall. (nor have any savings) We are planning on chatting to Halifax to tell them the situation as stated above, to see if they can offer any solutions . ( we have previous had some arears with hem, but now sorted and o.. for last 12 months)

We really do not want to hand the keys in for Halifax to sell at a greater loss anyway and we would rather be in control of the situaion ourselves but cannot see any way out of his. Are any of you friendly lot out there able to offer any advice , please? Thanks!

-- debbie (regan@sweeney.karoo.co.uk), April 14, 2002


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