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

dancingfairy

Maybe we should all email the chief executive and point out how utterly useless they are and how they obviously don't have a clue what it's like in the real world.
The system is so completely and utterly flawed. I honestly hope you can get them to see reason.
df

Angiepange

Hi all and thanks for the replies. It all helps to keep me fighting and I appreciate the time people take to advise and support me.

I am now going through a tense morning of negotiation with the mortgage co. The good news, I have receved an email direct from them stating that they are "agreeing the sum of £.... as full and final settlement of the shortfall and any further claims against you. Upon receipt of these funds, mortgage co will release its charge"

To add to this the HA have requested they confirm this on headed paper so it can be forwarded to solicitors for completion this week. And I have another email reply that states the mortgage co will be sending out a headed letter to the HA confirming the deal above.

I should be elated by this BUT I then email the mortgage co back to confirm that we are not filling in a shortfall sale form as its not been made clear in the emails whether they are still looking for this?

The response I get from the mortgage co is:

"Apologies, I DO need you guys to sign the application, purely as an acknowledgement of your agreement to the Shortfall Sale."

Surely if they are only needing acknowledgement, we could write our own letter and send it to them? I cant and wont put my signature against a form that clearly states we "remain responsible for any shortfall inccurred on the sale". From my point of view if we sign it and then for some unforseen reason the rescue fails at the last hour we WILL BE liable.

So what to do? I phone my solicitor who has been away for a week and explain our situation. She needs time to familiarise with our file and promises to ring me back. I haven't heard anything yet. So im sitting here very stressed and worried. I have composed an email reply to the mortgage co to say we are not signing the form but havent sent it yet. I want too, but im scared I will completely alienate them and they will stop the sale. I need to speak to my solicitor first and see what she advises. Please hurry up and ring, the waiting is unbearable.

Angiepange

The solicitor is advising us NOT to sign the shortfall sale form as its not in our best interests. They are advising us to wait and see the official letter from the mortgage co and then afterwards will question why we have to sign it !!!!!

At last someone is listening to me. All along we have been pressured into signing this form by the mortgage co and the HA despite my repeated concerns that we shouldn't have to.

So now just have to wait and see when this will all kick off. I feel a little more optimistic now the solicitor has given me this news and need to stay strong to fight the next stage.

notfunnymoney

Hi there Angie (and anyone else goin thru the MRS at the mo!) I've just scan read your ongoing posts about this shambles of a scheme and just wanted to say that you sound just like me!!!

We are only at the stage where the CRB have transferred our 'pack' over the LA for them to make the application.... but about a mth on I still don't think they've really done much with it since the lovely lady we're dealing with at CRB took it round there (their offices are thankfully right next door to LA!)!!!

I can completely sympathise with all your concerns about spending such a long time in this stress but without ever fully knowing if it will all be worth it in the end - the lack of confirmation is unbearable but it was one I knew I'd have to live with cos I knew this would be hellish from the beginning....

We too have considered selling up and doing things our own way just to get out all this uncertainty and red tape but like you, the thought of having the upheaval of moving could very well send me over the edge anyway!! We have a 3 and 2yr old and I have to apply for his school by Jan 11 - but I don't know where we'll be living!!! I love where we live, it's a lovely little community in an otherwise suburban area (we're in Surrey so not far from you!) and we have many friendly neighbours with other young children.

Like you we never thought it would come to this... back in the day we were really ok for money but then my dh lost his job, retrained as a Driving Instructor, his school was ripping him off so we thought it would be better for him to go it alone but that was at the start of the recession so work was dismal!!! It has actually got a bit better now and I also started a little part-time job at the beginning of the yr so that's helped too - but then cos my job brought in a couple of hundred a mth, our council tax benefit went from full to NOTHING - and owing arrears so therefore pretty much wiping out what I earn - oh they do encourage you to go back to work don't they??!!

Anyways, I'm expecting the worst all the time and have been told that it could take up to 8mths to complete....living up in the air that long is so hard but I just HOPE it's all worth it eventually....

Your story is inspiring and it's so good to read other peoples experiences cos as you've all said, it's not well known and only those goin thru it can truely understand what a trial it is!!

Thanks,
H x

Angiepange

Hi H

Thank you so much for posting. To be able to connect with others going through this is not only vital for your sanity, but can be what gets you through the process. I have one friend, I cant mention his name, also going through mortgage rescue (met him through this forum) and we have kept in touch through all this, swapping notes and concerns, and it has been a godsend to me. He is at roughly the same stage as us, and has gone through so many ups and downs too.

I am so glad you have made contact, and please feel free to pm me with any questions you might have or just to talk about it all. I think our application would have been completed alot quicker if we hadn't the shortfall to contend with, or the building regs issues that popped up with the survey. So hopefully you will not have as long a fight as me. But most importantly you need to stay on top of it all, pushing along the relevant parties to do their job. This is where the scheme falls down, I have always felt alone, no single person to ring and say "sort this for me please". Its been down to me all along. Hopefully your LA may be different.

So wishing you the best of luck hun, and im here for support. I am sorry you are going through it too, but keep fighting and dont take no for an answer.

Angie xx

Angiepange

:(:(:(:(:(:mad::mad::mad::mad::mad::mad::mad:

Letter from the bank came through today and im posting some of what it says here for the record:

"ML has agreed to accept the sum of £...... from HA in settlement of our charge plus an additional £.... which will be paid by LA on completion towards the outstanding balance due to ML.

I can confirm that the payment of £.... by LA will be in full and final settlement of the residual debt and no further claims will be brought against either of you by ML.

I would be grateful if you could now kindly sign the Shortfall Sale agreement and return this to me. The only reason why I need this signed is to ensure that we have record that you both agree to the sale.

Upon receipt of your application, I will then arange for ML to conduct its own valuation of your property to ensure tht HA's offer is in-line with the market. The cost of this will be debited to your account. You are therefore not required to pay directly........"


So, they still want us to sign a legal document that states we are accepting liability for the shortfall. And they now want to do their own valuation. My worry is if for some reason they value the house higher than the HA did, whats to stop them pulling out of the rescue safe in the knowledge they would have a shortfall sale form signed by us allowing them to repo us and chase us for a debt that would otherwise have been covered by our BR :mad::(

I have forwarded it all to our solicitor and am waiting her response. I have spent the best part of the morning in tears of frustration and despair. I phoned my DH and told him I want to walk away from this now.

What do the bank hope to achieve by doing this??? There is a good strong offer on the table for this house, they are dealing with two bankrupt people who they can't chase for the shortfall, they will have to repo this house and take a huge loss in doing so, they will have very bad publicity if what is happening to us goes public. What more can I do now???????????:(:(:(

dancingfairy

Oh for Pete's sake - I don't know what to suggest, I really don't. My heart is in my mouth every time I read a post by you.
All I can say is that I would agree with you - either they accept a letter from you and your OH to fulfill their criteria that you agree to the sale or perhaps you have to walk away? I hate to suggest this but you have to do what's best for you and the stress is just not going to be doing you any good.
Just sending you positive vibes.
df

confused76

oh Angie i don't know what to say :eek: this must be an absolute nightmare for you and the stress can't be doing you any good.

they are determined that you sign it aren't they? that is not a good sign. they wouldn't be that bothered about you signing it when you have specifically explained why you won't sign it, unless they want to use it at a later date. please do not give in and sign. they are sly

please let us know what the solicitor says
lots of love and hugs to you xxxxxxxx

Angiepange

dancingfairy wrote: »

Oh for Pete's sake - I don't know what to suggest, I really don't. My heart is in my mouth every time I read a post by you.
All I can say is that I would agree with you - either they accept a letter from you and your OH to fulfill their criteria that you agree to the sale or perhaps you have to walk away? I hate to suggest this but you have to do what's best for you and the stress is just not going to be doing you any good.
Just sending you positive vibes.
df

Thanks df and sorry if my posts have that affect

Walk away?...well that would actually mean wait for eviction day, wait until the bailiffs turn up to chuck us out, become homeless relying on the council to house us, pay for storage, pay for kennels when we don't have a penny to our name at the moment. It will probably come to that

dancingfairy

Have you got a complaint in with the ombudsman?
Also are you paying the rent rate you would be paying towads the mortgage at the moment?
I reckon you could drag this out for another couple of months at least if you needed to to see if you could possibly scrape together a few quid?
Have you got a court order? By the time they get a court appointment, then a judgement, then if it goes against you you can appeal, a complaint with the ombudsman would also take a while to resolve - i presume you've tried their complaint procedure? presumably they can't reposess while you are involved in a formal process.
Then you'd be given 2 weeks by the court presumably (you could puss for more?) then you'd have to wait for the bailiffs etc etc.
I don't know whether this would help at all by dragging everything out? Do you have an animal resuce charity near you? I don't know whether you could get in contact and explain the situation and find out that if the worst came to the worst would they take your dog - whether the knowledge that someone would take her/him would help you?
Storage - well I'm sure you can find some help for this from family/friends/MSE'rs etc.
The council - are you up on all the forms you need to fill in? and all the processes you would need to follow? I'm not saying this will happen but maybe it would help to have everything set up to go just in case .
I hope this post doesn't case offence I'm just trying to think of everything.
Oh - are you prepared to go to a newspaper/magazine to get publicity and shame your bank? I know it's not your preferred option but desperate times.... and all that.
df