Repossession dilemma - other people's views appreciated

cubehopper

I'm not after the sympathy vote, I'm just struggling to believe what is happening.

I fell out with my dad two months ago. I went to see him a few days ago to make peace to find his house (the family house) had been repossessed on 1st June. No one has heard from my dad since then, but I'm purely after advice from a financial point of view here.

He got into this mess when in the height of the credit crunch his mortgage payments soared from £1700 to £2700, and then a court order imposed a monthly payment of £3300 in order to clear the arrears on the account.

My dad is self-employed, and his income suffered a fall just as his mortgage payments went up. His income has since increased but due to him being self employed, the mortgage company will ONLY take past income into account. The worst part is that monthly payments have now gone down to £1,350 per month, which is more than affordable!!

The mortgage is 60% the value of the house (that's the value from 2 months ago) so there is equity. The mortgage company is demanding £24k (the arrears) plus 3 months payments up-front to hand so that's £28k that would be needed by the end of this week. I have authority on my dad's account, do you reckon there would be room for negotiation on this? The remaining term is around 16 or 17 years.

My immediate thoughts are rent the property out completely and it would fetch £2000-£2600 per month, so in the long term this would be a sound option. Also it keeps the family home in the family.

As for my circumstance, I have just finish uni so am poor, but go into a well paid job in September. Basically from my point of view this is all a matter of bad timing.

From an emotional point of view, please give any thoughts on this as I'm at a loss for words at the mo. I've found out my father's missing just before father's day, and (you just can't make this stuff up) my family home goes on the market on my birthday (next saturday).

The main barrier is the £28k which is do-able (my mum is willing to re-mortgage her house) but the 7 days we have is really tricky. Would making any sort of a lump payment to the mortgage help?

Worst case scenario what happens if my dad can't be traced? Would the money from the sale go to the state?

ct24

do you know where the repo is in the court system, ie has he been kicked out by the bailiff or has he just moved on the posession date set by the court? The reason i ask as someone that had the house repo, we moved out and sent the keys to the lender in time for the official repo date, yet they never actually took the property for another 6 months. Aslo can i ask how you know all this as surly the mortgage company wouldnt discuss this matter with you? A lump sum may help but you need to speak to the lender - out of intrest who is the lender? have you reported your dad missing to the police?

Hope it all come right in the end for you, and just remember if you cant do anything with the family home, it is not the end of the world, you have lots of nice memories, you need to find and support you dad in this difficult circumstance. take care.

cubehopper

I once had authority put on the account when I was helping him negotiate with the lender last year, it still seems to apply so I've been able to paint a picture of roughly whats going on. I think the baliff may have come, as all the locks have been changed and access to the property is via an estate agent. The mortgage is with southern pacific.

Thanks for your support. I'm just trying to figure out whether my dad is missing, or doesn't want to be found before I get the police involved. It's hard to tell at this point.

itsakidsworld

Hi,

what a tough time for you. Two issues so hopefully both will have a happy conclusion for you.

Regarding the property, if you have no cash I would approach citizens advice and explain what you are proposing and can they offer any professional help or contact numbers. Another option is to approach a solicitor in your area and use the "free consultation" to explain the situation in full. Ask them if they will help you by producing a business plan to take to the bank, to help you out of this current situation. Then ask them if they will add their fees to be taken from the monthly rental income and at some point a solicitor will agree- it will cost more but is better than nothing. Remember solicitors are struggling like everyone now so a window could open for you here.

With 40% equity in the property it is no wonder the mortgage company are pushing for possession so stay strong. It could be that all sides will agree, including the court. Just because one judge went against your dad dose not mean another will- even they get it wrong. The secret here is knowing the law so look on the internet and study the system as quickly as you can. Maybe type into google " the law on repossession" or "how to avoid repossession through the courts"- anything really.

Regarding your dad, he will be feeling like a failure at the moment and will want to be on his own. Hopefully he is ok and you can find him, make your peace and build bridges again.

The very best of luck at this difficult time.

peachyprice

Whilst your efforts to try to keep the home are admirable, you really need to speak to your dad before you do anything. Perhaps he doesn't want the house anymore. Perhaps he's thoroughly fed up with the noose it is around his neck. Imagine if he's decided to throw in the towel, which he has every right to, only to find you've interfered and committed him, and your mother, to keeping a house he no longer wants.

As for the deadline, even if you miss it and the house is repossessed all will not be lost, there are several members on other parts of this forum who have had houses repossessed, moved out for 6 months, then realised they wanted the house back, and have managed to come to a deal with the mortgage company. While not ideal, a repossession date isn't necessarily the end of the road.

I hope you find your dad and he is safe and well.