Can't make full mortgage payments, repossession?

Kev-83

Hi

My parents can't make there payments on their mortgage and my mum is worried about repossession.

The only income they have is the rent that I pay which varies between 400/500 pound.

I am currently in an IVA

First question:

1. Will the house be repossessed even though they are still paying 400/500 pound a month?

2. Would I be able to get a mortgage even though I'm in an IVA?

THanks in advance

anniecave

the only income..?.

do they not claim any benfits? income support? job seeker's allowance? any other benefits ..

Was one of your parents working but is no longer?

Kev-83

Yes they claim benefits. My dad can't work anymore and my mum doesn't work

barnaby-bear

Kev-83 wrote: »

Hi

My parents can't make there payments on their mortgage and my mum is worried about repossession.

The only income they have is the rent that I pay which varies between 400/500 pound.

I am currently in an IVA

First question:

1. Will the house be repossessed even though they are still paying 400/500 pound a month?

2. Would I be able to get a mortgage even though I'm in an IVA?

THanks in advance

The quicker they contact the mortgage provider the better, the faster they go onto interest only or some other way to prevent arrears the better to give more breathing space. Pay as much as you can as long as possible.

http://news.bbc.co.uk/1/hi/programmes/working_lunch/7654470.stm
http://www.cml.org.uk/cml/consumers/guides/worried
http://www.citizensadvice.org.uk/press_20990218

Use the reputable debt advisory services CAB/shelter/CCCS - try the DFW board for budgetting ideas.

barnaby-bear

Kev-83 wrote: »

Hi

My parents can't make there payments on their mortgage and my mum is worried about repossession.

The only income they have is the rent that I pay which varies between 400/500 pound.

I am currently in an IVA

First question:

1. Will the house be repossessed even though they are still paying 400/500 pound a month?

2. Would I be able to get a mortgage even though I'm in an IVA?

THanks in advance

Keep records and put things in writing the mortgage lender is required to treat customers fairly
http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/087.shtml

It may be useful to name the lender - and the rough amounts / shortfall.... different lenders are more sympathetic and some employees here have decent knowledge of their protocols....

anniecave

could your mum get a job them?

Have you checked the entitledto website to check they are claiming all benefits they can?

Kev-83

My mum can't work cos she gets ill

barnaby-bear

Kev-83 wrote: »

Hi

My parents can't make there payments on their mortgage and my mum is worried about repossession.

The only income they have is the rent that I pay which varies between 400/500 pound.

I am currently in an IVA

First question:

1. Will the house be repossessed even though they are still paying 400/500 pound a month?

2. Would I be able to get a mortgage even though I'm in an IVA?

THanks in advance

Consider posting some detialed circumstances here on DFW with an SoA - you'll get a lot of experts who will spot if there is anything wrong with what they are claiming http://forums.moneysavingexpert.com/showthread.html?t=107280 or their utility tariffs etc...

If there are reasons for not working/benefits/disabilities illness look here:
http://forums.moneysavingexpert.com/forumdisplay.html?f=139

nig0609

can they approach the lender to extend the term of the lease? I started a thread about shortening the term to avoid penalties for overpaying. I know this is the opposite, but it supports my point:

http://forums.moneysavingexpert.com/showthread.html?t=1506905

Trollfever

Did you manage to sort out your grandfathers finances?

krisskross

If they are on means tested benefits do they not qualify for help with the mortgage interest? This is available after 13 weeks. You might do well to post on their behalf on the benefits board to be sure they are claiming everything they are entitled to. How old are they?