Govt Mortgage to Rent Scheme/Will it save my house?

IF

Hello Angie, I'm thinking of you all.......and got my fingers too lol x:A





......just for luck x

NellieNewbie

Angiepange wrote: »

Hi NN

Thank you so much for posting this link :A. I have had a brief look as not had chance to read all through the 192 pages :eek: yet

Obviously the section on writing shortfall debt off is of massive interest to me at the moment so I will have a thorough read.

I cant thank you enough :A

Angie x

Page 76 onwards - fingers crossed.

dancingfairy

Gosh - I just hope the mortgage company see sense.
Good Luck
df

Angiepange

Ok today we received the Shortfall Sale Application Form.

Its very detailed. Apart from having to fill in all our personal details, income/expenditure, proposal of how we plan to clear the shortfall etc etc. The form does not detail how much the shortfall is or how much repayment is expected. BUT the small print states that once signed we 'understand we remain responsible for any shortfall incurred on the sale including all costs as detailed in the criteria/conditions of the shortfall sale package and that interest will continue to be charged in accordance with the terms of the mortgage clauses'. The conditions also go on to state 'All borrowers will remain responsible for the balance of the mortgage remaining after the sale. Once the sale completes, a statement will be sent to all borrowers and a representative of .....(mortgage co) will contact you to make arrangements to discuss your proposals to clear the shortfall'.

Oh and they also require a payment of £132 for an independent valuation report to be obtained by them to ensure the selling price is not below the valuation figure obtained. This is despite an independent valuation already carried out by the HA. And they highlight in bold 'Without this survey report a shortfall sale application can not be considered'.

So if we sign and return this form, the mortgage co will allow the rescue to complete, but we are making ourselves liable for mortgage shortfall. If we dont sign the mortgage co will refuse to allow the sale. If we are repossessed the shortfall debt will be included in our Bankruptcy.

We are not signing anything at the moment.

As you can imagine my emotions are all over the place now. My first thought is who do I turn to now to help me? My CAB advisor suggested getting in contact with my solicitor, my council and the OR.

On monday thats what I will do. I will email a copy of the forms to my solicitor for her to look at. I will contact the council who have been of little assistance so far and I will ring the OR to run it by them too. I dont know what else to do?? I need someone to negotiate with the mortgage co on our behalf, im not sure I can do that on my own. I feel like I am drowning now.

I need real help with this now and I dont know who to turn to and who will help me. :(

I have an email address for someone at communities and local government who is very involved with mortgage rescue, I am going to contact them and ask for help. I dont know if this will get me anywhere, but im desperate now. What have I got to lose? :(

confused76

oh Angie i wish i could help but i haven't got a clue! you should try that email address you've got, as you say, nothing to lose....

i'm so sorry i can't help...but you know where i am if you need someone to talk to...xxxx

NellieNewbie

Angie I think you are doing the right thing asking the two most important people to look at it for you - your solicitor and your OR.

I suspect your mortgage co. doesn't have a 'Shortfall' form that fits in with the MRS, so they have sent you the bog standard Shortfall Sale Application Form, without realising that it doesn't properly fit the circumstances. I can perfectly understand why you don't want to sign for liability for the shortfall and I'll bet your solicitor and OR will tell you not to sign it, or at least not without amending it, so that you do not accept liability.

You are so close now, so just hang in there.

bat-out-of-hell

Angie, the argumant is simple, but doubt commen sense will even dawn on the mortgage company.

Your responce is simple, you will not sign any documant re shortfall as any liabilaty will fall into BR, so it is there choice, allow the sale to go through, which i am guessing is netting them the best return, or go for repo and most likely get less therefore making the shortfall larger, No point beating round the bush here Angie, one way or the other you wll at least know where you stand.

You knew this was going to be the hardest bit, and the only way to find out how it will go is to meet it head on and give them the choice.

Its not going to look good though if they refuse, and then lose thousands, which no doubt you will gladly publiscise;)

bat-out-of-hell

One other thought, if you hit a brick wall may I suggest contacting your local councillors/MP's as well. It may not help much, but if the MRS fails at this point, then it will never work and is pointless in such cases, so they need to know

Angiepange

bat-out-of-hell wrote: »

Angie, the argumant is simple, but doubt commen sense will even dawn on the mortgage company.

Your responce is simple, you will not sign any documant re shortfall as any liabilaty will fall into BR, so it is there choice, allow the sale to go through, which i am guessing is netting them the best return, or go for repo and most likely get less therefore making the shortfall larger, No point beating round the bush here Angie, one way or the other you wll at least know where you stand.

You knew this was going to be the hardest bit, and the only way to find out how it will go is to meet it head on and give them the choice.

Its not going to look good though if they refuse, and then lose thousands, which no doubt you will gladly publiscise;)

Thank you to all the replies.

Bat I like how you have put it, you are so right, But I 'feel' stupidly :o awkward to say it to them. I am cross that it seems down to me to say it to them. I am scared of a big financial institution, stupid I know and I am embarrased to admit it. I have been thinking about drafting a letter to them but want to see what advice I get from the solicitor etc. I guess im just scared that it is all finally reaching a head now.

Gosborne

Angie, this thread is very long, and it is hard to wade through all the previous posts.

But I think you have been going through some of the situations which I am trying to avoid.

I think you have experience of the Repossession/Shortfall situation, but, like me, you are unwilling to simply keel over and accept the 'opinions' of large banking organisations.

My view is that in the current situation we have more power than the lenders would like to acknowledge.

Their business model is based upon their calculation that their investment will always be fully protected by the market value of the properties which they accepted as security.

But their calculations have turned out to be wrong!

There is no logical reason why the likes of you and I should have to bear the costs of their miscalculations - if the house is worth less than the loan, then the cause of the shortfall is not yours or mine, but is the result of the decision of the banks to close down the mortgage market back in 2007.

x