What to tell mortgage lender?

silou

Just wondering what others have told their mortgage lenders/secured loan companies during that period of time when you've stopped paying them but are still in the property pre moving out and allowing them to repo.
I've missed just one payment so far and the number of calls has increased dramatically over the last couple of days both to my home phone and my mobile. My strategy has been to ignore them so far but I'm not sure that this is the best way as obviously they'll just keep trying.
So if anyone who has been through or is going through this has any tips for dealing with it I'd be v grateful.

maxmycardagain

depends what your game plan is

with thier help you can sit it out longer and save up more money for your next place/rents/bonds/ect.

they will keep trying obviously, but if your set on BR then you have to put yourself first, they never truly lose out, youve paid the deposit+mortgage+fees, and maybe an indemnity insurance plus they will sell the house for a cash deal at auction, theyve got loads more money than you have, que sera sera, they gambled on you but lost, i doubt they will go under.

its a long process to have you actually evicted, maybe 6 months in some cases so you need to be in it for the long haul.

chin up, upwards and onwards, tomorrow is the first day of the rest of your life

silou

Thanks Max, the game plan is to move into rented as soon a we find somewhere suitable. I just wondered what others had said to their mortgage lenders about missed mortgage payments in the meantime.
Thanks.

fiveyearplan

I haven't gone through that (yet!) with mortgage lender however I did have continuous phone calls from other creditors and I ignored them as best as possible after initially speaking to them and getting nowhere. With a mortgage lender however I think I would speak to them - tell them what? I'm not sure.

I will be in that position in 9 days time when this month's payment is due as it will be the first payment since my fixed deal came to an end and it has increased by £500 per month! I paid my October payment by debit card as I have cancelled my direct debit and I told them at that time that I could not afford the increase and asked if there was anything they could do. Because I have £300 arrears already they said they could not even speak to me about lowering the interest until I cleared that and wasn't in arrears. I don't know if they would lower it in any event and just said that so I would pay up!

I'm thinking of paying the arrears this week to see if they can do anything but this will mean I'll have that much less for November payment. Don't know what to do!

maxmycardagain

They are all big enough to "place the bet" when gambling on your long term financial security+well being, they have to be big enough to accept sometimes, as arnie said "s**t happens" and take it on the chin, its all a gamble, they usually win overall (even if you lose the house) so stop feeling sorry or benevolent towards a company probably paying its board members £2,000,000 a year in salary, expenses, share dividends and bonuses.....

OhDear

I don't know what the current situation is, and I guess it may depend on your mortgage lenders etc. etc. But in the last recession of early 90's, most of the lenders only considered arrears of 3 months or more to be "Serious". Talking with them helped to negotiate lower payments (but not lower interest rates).
Depending on your situation, they may consider taking interest only payments. This is a short term solution only, as when your term comes to an end you've either got to pay off the mortgage with the proceeds of "other investments", or you sell up, redeem the mortgage (before the end of the term!) and hopefully have enough to buy a downsize property. So it can be a risky mortgage strategy.
I knew of many in the last property crash, who just stopped paying in order to get any equity out and save for renting. I don't know what the long term implications were though.

dodecanese

Hi Silou
This is just my experience...... I decided to stop paying mort in September, and am allowing mortgage co to repossess. The main mortgage holder have not contacted me at all yet. First Plus (sec loan) called me a day after I cancelled the DD- I just told them I was letting the property be repoed and they would have to speak to the OR (in my case Im bankrupt already and the OR has been unhappy with the mortgage payments). They were quite accepting (so far), and just said "oh, all right then". they wanted my work number though, which I refused to give to them. It's all very quiet at the moment- not sure what I'll say when they call- am playing it all a bit by ear at the moment.

silou

Thanks for that, just can't make up my mind whether it would be better to keep ignoring their calls or speak to them and give them some waffle or just be honest and tell them they're quite welcome to crack on and reposses the place.
I'm not BR yet but hopefully will be once we've moved into a rented place.
Can't believe your main lender haven't contacted you yet, mine were on the phone about a week after the first missd payment and have been pretty persistent with the calls ever since!

maxmycardagain

ok, spin em out, plead your case for a "payment break" and look for a place to rent (option 2 is to do that after eviction in maybe 6 months time or more), spin em out, go rental, go BR, smack/whack, job done, no debts, no mortgage...

craigos74

I went BR a couple of weeks ago, having my OR interview this thursday and bricking it. I stopped pay the mort and the sec loan two months ago now, i've not heard anything from the mortgage company but the sec loan people ring me daily at work and are threatning home vists and taking money from my salary. Its all a bit daunting but what can they really do? I've told them i'm not paying it and giving up me flat (which i have about 20K of negative equity in) but they just keep trying will i have to keep taking it off them till the mortgage company repo? Ive not slept in weeks its really upsetting me.

silou

Max, I like your style it sounds so straightforward when you put it like that!
Thanks.