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

Sunnylooloo

Hi hun

not had a chance to read everthign but i will do

one quick thing i will say is contact local councillor and also MP - if you want I will also write a blog in my local paper for you to bring this all to light??

let me know! I hate this situation for you

xxxxxxxx

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;)

Do you know what Bat, you have really made me think tonight. Amongst all my turbulent emotions, I am starting to see this how you have said. 'Meet them head on'. What have I to lose? I tell them we are not signing, in fact the covering letter from the HA today gives me the name and address of the person who deals with shortfall in the mortgage arrears dept. So, should I spend time updating all the parties involved and telling them we wont sign or should I approach the mortgage co direct and tell them direct we are not signing?

I am still angry I am put in this position, the CAB document I have states ' in order to proceed with mortgage rescue and stay in the home the client is placed in a vulnerable position of entering into an unsustainable agreement to pay the shortfall debt. On a national policy scale we should as an organisation be looking to persuade lenders to write off these shortfall debts in principle at the time of the MR. It is both against the spirit of MR and the govt mortgage arrears initiative. There may also be legal procedures and complaints processes that can be used in this, ie. if they are regulated to FOS and possibly unfair relationships under the Consumer Credit act.'

Gosborne wrote: »

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

Thank you for your advice.

Sunnylooloo wrote: »

Hi hun

not had a chance to read everthign but i will do

one quick thing i will say is contact local councillor and also MP - if you want I will also write a blog in my local paper for you to bring this all to light??

let me know! I hate this situation for you

xxxxxxxx

Loo, Bat also suggested local MP, thank you. As for blog, which is fab by the way :A I may come back to you on that Loo. See how my battle goes first, but that could be a good way of 'getting it out there' thank you hun xxx

Sunnylooloo

ok Hun let me know as I will def get on to my local paper and write my blog for ya xxxxxxxxxxxxxxx

bat-out-of-hell

CAB document I have states ' in order to proceed with mortgage rescue and stay in the home the client is placed in a vulnerable position of entering into an unsustainable agreement to pay the shortfall debt. On a national policy scale we should as an organisation be looking to persuade lenders to write off these shortfall debts in principle at the time of the MR. It is both against the spirit of MR and the govt mortgage arrears initiative. There may also be legal procedures and complaints processes that can be used in this, ie. if they are regulated to FOS and possibly unfair relationships under the Consumer Credit act.'

Pondering on that, it does seem ridiculous they (the mortgage lender) could use this to put themselves in a 'better position' in relation to other creditors, which if it was not for MRS is where they would be, as you would have packed up, handed the keys back and walked away, leaving the shortfall to become an unsecured debt provable in BR.

An angle the powers that be did not think abot properly, like so many of these 'good ideas' they think they keep haveing.

NellieNewbie

Angiepange wrote: »

...I am still angry I am put in this position, the CAB document I have states ' in order to proceed with mortgage rescue and stay in the home the client is placed in a vulnerable position of entering into an unsustainable agreement to pay the shortfall debt. On a national policy scale we should as an organisation be looking to persuade lenders to write off these shortfall debts in principle at the time of the MR. It is both against the spirit of MR and the govt mortgage arrears initiative. There may also be legal procedures and complaints processes that can be used in this, ie. if they are regulated to FOS and possibly unfair relationships under the Consumer Credit act.'...

Angie the fact that lenders do not have to agree to write off any shortfall has got to be a major weakness of the scheme and I wonder if this is one of the main reasons why cases fail to complete the process and just how common this is with lenders?

There is a lot of information about lender negotiations in Chapter 5 of the interim report published yesterday and amongst lots of other snippets, says there was no pattern as to which lenders were easier to deal with. It doesn't say how many cases fail because the shortfall negotiations failed, but it does mention that housing associations have used the Repossessions Prevention Fund (RPF) several times to repay small shortfalls, or make a contribution towards the shortfalls, in order to facilitate completion of transactions. It has been important in clinching deals - so there may still be further options available if your lender is uncooperative.

47% of completed cases by the end of February 2010 had negative equity and out of the 425 completed cases that were monitored for the report, in 190 cases lenders agreed to write off an average of £15,567. In around a quarter of cases lenders agree to write off sums exceeding £20,000, and often the sums involved were much higher.

Lenders are supposed to be enthusiastic about MRS as it works in their favour because they can take a small shortfall on MRS, rather than going down the repossession route which costs much more in the long run.

I hope you are not unlucky enough to have a lender who wants to have their cake and to eat it too.

Angiepange

Update

I have emailed my solicitor, the mrs officer at my local council and the Official receiver. I have sent them all a copy of the shortfall sale document asking for their advice on how we are to proceed now.

My solicitor has replied that she can be of no assistance in negotiating any shortfall as her role is to deal with the formalities of transferring title on the property. She also commented that lenders don't always agree to write off the shortfall and my lender in particular is notoriously slow.

I rang the council and have an appointment to see the housing officer tomorrow, so I am preparing all my documents and relevant information in order to present our current situation to them and find out how they are going to help me. I made it clear how desperate I am for help and tomorrow I will make it clear that we will go down the repo route if no-one is willing to help get our mortgage rescue completed.

I have yet to hear from the OR.

confused76

you've been busy, good on you. i so want this to work for you....
good luck tomorrow, you know where i am anytime xxxxxx

dancingfairy

That's pretty much it isn't it. I hate to say it but I think they will say no at which point you will need to write a letter of complaint to one of their senior people in the bank at which point they may then say yes.
Your case seems strong to me (but I have no experience of this at all) but it seems so obvious.
Fingers crossed - hopefully your solicitor will be on the case and can help you write a strong letter.
df
Sorry I was replying to post 160 which summed it up perfectly before I realised there was another page to read. Lol.

I also wondering whether Martin can be of use? He may be able to apply pressure - directly or indirectly - especially if he can point out to the politicians the positions some people are finding themselves in through no fault of their own and the lack of joined up support available to them. He may even know a solicitor to help re negotiating the shortfall. If it stops anyone else having to go through what you've been through then that's progress.

confused76

dancingfairy wrote: »

That's pretty much it isn't it. I hate to say it but I think they will say no at which point you will need to write a letter of complaint to one of their senior people in the bank at which point they may then say yes.
Your case seems strong to me (but I have no experience of this at all) but it seems so obvious.
Fingers crossed - hopefully your solicitor will be on the case and can help you write a strong letter.
df
Sorry I was replying to post 160 which summed it up perfectly before I realised there was another page to read. Lol.

I also wondering whether Martin can be of use? He may be able to apply pressure - directly or indirectly - especially if he can point out to the politicians the positions some people are finding themselves in through no fault of their own and the lack of joined up support available to them. He may even know a solicitor to help re negotiating the shortfall. If it stops anyone else having to go through what you've been through then that's progress.

i like your idea of whether Martin could be of any use....one to think about Angie? x

MicheH

ok Angie, you've come so far with this I don't know what to say to you right now. Hope you're holding it together ok, like conf said - you know where we all are. Stay strong with it all ok... and keep smiling, it's infectious x