My partner bought a house about 8 years ago, but after 5 years we had to move because the house was too small for our growing family. We were in negitive equity and couldn't afford to sell it, so we managed to rent a council house and get some friends to move into our (mortgaged) house. They have been paying us a little bit of rent (just enough to cover the mortgage payments). Since we moved out there have been enormous problems with the area, the result being that our house isn't worth the bricks it is built with (no I'm not exaggerating). Most houses in the area are boarded up or burnt out. The area is constantly in the local newspaper because of the problems and part of the next street is being knocked down by the local council because of this. Our problem is is that we still owe the Halifax about as much as we borrowed (#26,000). We simply cannot afford to pay the mortgage for there and our rent for our current home. Should we just stop paying? Halifax don't even know we have moved. Any advice at all would be grately appreciated.

-- Anonymous (anonymous@anonymous.com), May 24, 2002

Answers

Julie,

Looks like you're in a difficult situation. I think you should first go to your local CAB on this one and get some professional advice,before taking any other action. Normally you need permission from a building society to rent out a mortgaged property. I tried to do that with mine to save it from repossession, they refused, and now I've got a mortgage shortfall. One other suggestion is to contact local housing associations in the area,explain the situation, and see if they will buy it, there may be a regeneration program in that area. Good Luck.

Mark.

-- M Amos (idgroms@hotmail.com), May 25, 2002.