Mortgage Arrears Help Guide Discussion Area

Chameleon1972

have you got anywhere or done anything about this yet ??? am just interested as i am in same situation

marleyhull

Any advice appreciated.

Due to change in circumstances i am now about 20K in arrears on my mortgage and have informed my lender that as my circumstances cannot be guaranteed to inmprove i have decided to put the house on the market as i cannot guarantee payments. The situation is complicated by the fact that i have tenants in there and am renting another cheaper property myself. I have given the tenants notice and they have unbtil sept 30th to move out. The mortgage company does not know i have tenants in there currently.

Then property is in negative equity on an interest only mortgage - including arrears its about a 35k difference between amount owed and property value.

I have spoken to lender and informed them house is being oput ob market. They have said reposession proceedings will start and have also said that they will not accept an offer on the house that is less than they are owed AND that interets of £2200 a month will continue to be added. This is effect means that the For Sale price also has to go up by £2200 a month.

I pointed out to them that if they reposess the house they will presumably want to sell it anyway to get some/all their money back. I need to fight the reposession to give my tenants time to get out but at the same time i am thinking that if they are continuing to add £2200 to the debt each month the sooner i hand them back the keys the better.

Final element of this, i have a business loan from my company which has a second charge on the property. The bank is aware that it is negative equity however repayments agianst that loan (from the company) have been kept up. Not sure how this adds into what is alreadty a complicated scenrio.

Caught between a rock and a hard place. Any ideas?

sickofitall_3

MarkSixtyOne wrote: »

Hi
We have just received notice that the holder of a second charge on our property is taking us to court to repossess.
My question is this; As the property is currently in negative equity, and not even covering the first primary mortgage chargeholders liability, can the secondary charge holder still successfully repossess, even if they are unable to get any proceeds from the subsequent sale of the property due to the total lack of equity, and being in a queue behind the first charge holder?
Thanks.

this is my case however, Natwest have said they will not force a sale but rather add this charge to tha back of the mortgage with N Rock. hope this helos

fettes5

I do not know where you stay,whether it's England,Scotland,Wales or NI
but i imagine the general rules are roughly the same. First of all,"do not panic!" i know it's easy for me to say but seriously,do not panic. Black horse would have to get a court order to evict you, so go immediately to your local "citizens advice bureau"(CAB) office in the town where you stay,get them on the phone and stress how urgent the situation is. When you go to see them remember to take ALL the paperwork with you,everything! Meanwhile,you should contact Black horse finance by recorded delivery.Tell them exactly what you have told us here and tell them that you really want to repay your indebtedness to them and ask for Two weeks grace in order that you can sort something out. Be vague in your letter,but give enough details so's to keep them interested in the hope of getting some dosh from you.
I cannot really offer any further advice here without knowing more information but the first and most important thing to do is get professional advice, i suggested the CAB as i know they will see you almost immediately and,if nothing else they can refer you on to a legal-aid solicitor who can help you in your fight with the dirty horse Good luck and please keep us up to date with what is going on.

Derek
Edinburgh

gerryscot wrote: »

Due to my disability i am currently on oxygen waiting for a lung transplant. I have no arrears on my mortgage payments however unfortunately i am unable to pay the monthly payments on my secured loan i currently have with Black horse finance. They are aware of my severe health issue's however the only communication i receive from them is in the form of sheriff officers. I received a letter from them this morning informing me they will evict me from the property next week.

Can anyone please offer me some urgent advise!!!!

sickofitall_3

Firstly, i hope you get better.xxx you need to get a solicitor. Find out one near you who will do a free surgery on certain days of the week. They will write a letter on your behalf to blackhorse and hopefully this will stop them harrassing you, at least while you are super ill. Hope this helps. Ring citizens advice for numbers or look in the phone book for a solicitor near you and call and ask them if they do a free one hour session, most do. hope this helps. good luck.

lisa1208

Can anyone please give me any advise. After 22 years of being with my husband he decided to leave me last July. I stayed in the marital home with my 2 children - 11 and 7 but have struggled every since to pay my mortgage. He left me with a £800 a month mortgage which is on interest only and left me in £20,000 of debt. He said he would pay the mortgage every month which he never did and doesnt even pay any maintenance for the children. He used to but now he has stopped. Before any one shouts at me I know about the CSA but I have put the house up for sale and he said that if I do anything he will go bankrupt and let the house get repossessed. Anyway the house has been on the market for 8 months, I have just dropped the price and still no interest. I cannot drop it anymore because of my huge mortgage and I would like to have a few thousand left over to put down as a deposit on a rented place - I have never rented in my life but I dont have any option. Anyway I spoke to my B/Society last week who told me that the worst thing I can do is not pay my mortgage and even if I only pay some of the monthly amount, it will go in my favour and they will be writing to my ex about the amount that isnt being paid. Obviously I want to pay my mortgage, I dont want to go down the repossession route and I know I will be blacklisted which will cause me major problems but I do think that after the houses prices went sky high and then everyone losing their jobs with the recession there is very little help out there. My fixed rate finishes in Jan and then it looks like it will go up another £300 a month so something needs to be sorted out one way or the other. Sorry for making this so long but I didnt want to leave anything out. Thankyou for any advice. It is appreciated

fettes5

Chameleon1972 wrote: »

I would like some advice, i was made redundant in september, i am not in arrears but may soon start struggling as i am only on JSA and some housing benefit due to my house being shared ownership and the redundancy money will run out soon which i have used to pay my mortgage, bills and C/C debts & unsecured loans. I am worried that if i contact my mortgage company they may blacklist me or be anti as i am not working at present

First of all you should be claiming all the govt. benefits you are entitled to. I am assuming that you have contacted the citizens advice bureau(CAB) about your rights re your benefits etc. It is also not clear from your post if you have spoken to the DSS about your entitlement to help with your mortgage payments. All i would suggest you do and do it quick style is go and see the DSS NOW and i mean NOW about your mortgage and as far as your mortgage company blacklisting you is concerned, i really wouldn't give Two hoots what they think ,i can assure you that all they are interested in is getting their money,either from you directly or indirectly via the government. Either way,get off your backside and see the DSS and yes,tell your lender your situation,be honest with them and tell them thab you are applying for benefits and you are not doing nothing,there is nothing worse than telling them that you have lost your job and,no you haven't went to the govt for help. See the DSS tomorrow morning 9am!

savewarrior

Hello :money:

To help an ex-partner with debt a few years ago, we agreed to apply for a loan (re-mortgage) since we are still civil partners legally and I live in the house. I owned the house and added her name to the deeds and since the split, we agreed that the house was mine again.This had the (unforseen) effect of instantly associating me with her poor credit rating. Neither of us was savvy enough to know much about c.r. then, however, I discovered this recently when we applied for a transfer of equity back to me and for a loan for myself. After being refused, i checked my c.r. and as expected all was well with my affairs except the payments on the loan had defaulted for a few months last year. Is there a legal way, i.e. using a solicitor of disassociating myself and requesting for my c.r. to be amended?

lisag50

Here is my situation.
I split up with my husband in April after he was violent towards me and he has since lost his job and on JSA, consequently he hasn't paid a penny towards the up keep of the house.
I live here with my 2 teenage children, and have been struggling to make ends meet. I am in a sales job and have a fluctuating income, which makes it very difficult to negotiate with my lender.
I have kept up with the primary mortgage with Birmingham Midshires, but have fallen in to arrears with the second mortgage with Southern Pacific.
I have been making payments where I can, but they are now threatening repossession. I spoke with them today and they have agreed to look at modifying my loan, however I haven't found them very helpful in the past.
I spoke to their debt counsellor and offered to pay £160 per month which is half of the payment, but they just ignored this and said there wasn't anything they could do for me, so I am not holding out much hope for the modification.
The interest rate is high as it is 7% above libor and I have asked if they can reduce this?

I have my property on the market and face coming out of it with no money for me and my children if the repossession goes ahead.
I have made an appointment with the CAB next week to discuss my options with a debt counsellor.
All is looking very bleak and I and finding it all very stressful and it is now affecting my work.

Is there any light at the end of the tunnel for me?

scorpio_stu

Hi,
I looking for some advice but understand the answers may be speculative.
Here goes.
I am employed
Wife is self employed
For the past two years my wife has been self employed as a mortgage broker,yes she went self employed as the market crashed and has struggled on for two years. Because of this her credit rating is shot and is now unable to get a job in the financial industry as no one will touch her.
Our mortgage is £338,000 plus £16,000 arrears. We are on a fixed rate and the monthly payment is £1788. We have been unable to pay that amount for quite some time as we also have other expenses with 3 children.
Our house is in litigation and HL interactive are dealing with it.They said that they are only allowed to accept one payment plan offer which was the full mortgage payment without any on top arrears being paid off yet. We were unable to keep to that arrangement and have been paying around £1000 into the mortgage each month.Obviously this is showing up as a broken arrangement. We have no family or friends that are in a position to help and we have had the house up for sale at a reduced rate for the past 3 months with no offers. On December the 2nd our mortgage fixed rate finishes and we go to the variable rate.This means our mortgage is going to go from £1788.00 at 6.4% down to 4.24% and an approximate monthly payment of around £1150. This is going to mean the difference of being able to keep our home or lose it.
Srry I'm waffling on a bit but very stressed out.
What I am asking is that we would be able to manage paying around £1400 into the mortgage so that means approx £1150 into the loan and £250 off the arrears which means IF everything stayed te same a 5 year payment plan would need to be agreed as £16000 arrears at £250 per month equals 5 years. We also have one other secured loan with Welcome finance,we are also in arrears with that and now pay £180 per month to them. We have approximately £30,000 of unsecured debt that is gradually going down . Am I clutching at straws to save our mortgage or do you think its possible. I have been in contact with the civil service benevolent fund and they have someone contacting me Monday to sort the debt out. Thanks for listening and sorry for waffling. Stuart