Mortgage Arrears

silverback18

Hi, my first post on here, I hope someone can advise me, I have current arrears on my mortgage for just over £5,000.00, I have recently changed employment from being self employed to being employed, I am salaried, so no overtime etc, I had a phone call this morning from my mortgage company GMAC, they were asking me about the arrears, they asked me for an amount that I could pay each month to reduce the arrears, I said I was not in a position to offer anything at present as I had only just started my new job and needed to prepare a budget sheet to allow me to work out if I have any expendable income, they were quite abrupt at this point and said that they would enforce the repossession order that I thought was satisfied, as I had paid off all the arrears that were due under the order, they told me that the order is valid for 6 years, is this correct, I thought the order was only valid until the amount of arrears on the order was fully paid, which it has been, another question what is the minimum amount I could get away with offering the mortgage company against the arrears, looking at my salary I doubt I will have much spare cash, I can afford to make the monthly which is just under £1000.00, but I would like to know if there is a minimum they should except, especially in the current climate, obviously I dont want a possession order granted, I have fought long and hard to keep my house, I don't want to lose it now

Thanks
Chris

SouthCoast

Advice from CAB on dealing with mortgage arrears:

http://www.adviceguide.org.uk/index/life/debt/mortgage_arrears.htm

babirusa_rose

They need to see you making some effort even if you just start off paying a small amount and then increase when your circumstance change. Also, if you can prove you are doing everything you can then there is much less chance of the courts approving a possession order. I would suggest you get back in touch asap and offer whatever you can.

silverback18

Thanks for the replies, what annoyed me about them was they rang me at 8am on Saturday morning and pressurised me to offer an amount to pay each month on arrears, I have only just started a new job on the cards, I have previously been self employed, I have only received one pay, so have not yet done a budget planner, I explained this to them but they seemed to have difficulty understanding, eventually they gave me until Monday, otherwise they will enforce the suspended possession order, that is my other issue, they were granted a suspended possession order approximately 1 1/2 years ago, I was ordered to pay an additional £500 a month on top of my £1,000.00 per month mortgage repayments, I complied with this and paid the arrears off in full, but it is this same suspended order they are threatening me with now, surely that order is satisfied, as I paid all the arrears that were due under that under, are they correct when they say they can still enforce this same suspended order.

dimbo61

Can you afford £250 a month ?
It would take 20 months to clear your arrers and hopefully your lender would be happy with that.
You must make some effort to pay back the arrers or you will lose your home and have debts for years ( and a bad credit score )
Try and work with them, you have repaid £500 a month extra for over 18 months so see if they will accept your offer.
Try not to build up any more arrers and work at reducing your spending or increasing your income GOOD LUCK

Muppit_2

I think you need to talk to them and try to negociate. If you said you couldnt pay a penny extra to clear the debts I would expect them to reprocess you because that £5,000 will be gaining more and more interest and the problem will be getting worse for them.

silverback18

I intend to offer them extra money each month, but my main query is, can they use the previous suspended order now, as I said, I cleared all the arrears that were under that court order, but that was over 18 months ago, so although that court order has been satisfied, they are saying that they can simply use that court order to repossess my house now, without going to court, but I would of thought that they would have to start the whole process again, as that order was paid, but they are telling me that the order is in force for 6 years, how is that fair, that I clear a court order and through different circustances I accumalate more arrears, they can simply resurrect the old court order.

jimbo26

I am not a legal expert but my wife was in a similar position many years ago just before we met. She had a suspended order and once the arrears were paid off the order ended. GMAC would need to go back to court IMO.

*jobags*

Did you clear the costs as well as the arrears? - the order is still valid if you haven't paid off the costs as stated on the order.

They are wrong if they said the order is valid for 6 years - it is valid as long as there are arrears and costs outstanding.
In the social housing sector we have suspended orders on tenants with arrears of £3,000 to pay them off at £2.55 weekly - thats 22 years the order is valid for.
The order gets a bit long in the tooth after 6 years and you wouldn't really want to enforce it but by then you would know if the person was going to comply.

I would check your costs - they may not have chased you for them or flagged them up just so they could keep the order valid - dirty tricks from dirty players

Good luck

Jo

hitchins

Also for every month you are in arrears you will be charged £50.

BYALPHAINDIA

Had a GMAC mortgage before, Never missed a payment.

I got the 'impression' that they were a very unhelpful & understanding company.

I often thought that if we missed 1 payment they would be onto us.

I sent them a letter - And told them what I thought of them because they were being funny about something? cannot remember.

Called them a set of 'lancashire Hot Pots' ( Head office Burnley)

I'm a Yorkshireman!!

Kicked them into touch 3 years ago.

AS LONG AS YOU ARE PREPARED TO PAY YOUR MORTGAGE THEN THEY CANNOT LEGALLY DO ANYTHING IN A COURT OF LAW.

DON'T BE TAKEN IN ON THEIR 'SILLY' THREATENING LETTER'S.

Best Regards.