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Govt Mortgage to Rent Scheme/Will it save my house?
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Hi marushkababy
I have replied to your PM, just sorry it's taken me so long ! I don't get on here as much as I would like now.
You might find this link helpful
http://www.homesandcommunities.co.uk/mortgage_rescue_guidance
Once you click on it there is a further link Mortgage Rescue Toolkit which explains in detail the different stages of MRS and what to expect. However Im not sure how current the info is?
xx0 -
Hi
My DH and I are currently going through the MRS. We will have a mortgage shortfall of approx 30K. We also have unsecured debt of about 35K. Our intention was to go BR when the MRS had gone through. However, when I just reread through our letter from Shelter who helped us with the application, it says do NOT sign a shortfall agreement if you are intending to go BR as you could be subject to a Bankruptcy Restriction order.
Our solicitor wrote to us on Friday to say that Santander were saying we had already signed a shortfall agreement to repay at £100 per month. (This figure was arrived at by Shelter when they helped us with our MRS application.)
Since then our income has decreased again- bloody Tax Credits- and our "spare" income is only £27 per month.
Also, Santander said that they would not give our solicitor a copy of this signed agreement. To our knowledge we haven't signed anything but I am no panicing in case we have unwittingly signed something. In all of our paperwork I can find nothing about this- surely we would have a copy. I feel like I am going mad!
What I am worried about is if we don't sign the shortfall agreement then the MRS won't go through. If we do sign it we can't go BR and we will have debts of 65k to pay and not be able to meet the payments. We are currently only paying token payments to our unsecured creditors.
Anyone have any advice? I feel sick with worry. Just waiting until I can speak to the solicitor and remembered this thread on the MSE Forum.0 -
Hi strawberryblonde
I am no expert, but I will tell you what I have been told and let you make your own mind up.
When I initially went to the CAB about MRS I was told that if we declare ourselves bankrupt straight after MRS we will be seen as fraudulent and that we set the situation up deliberately. So I can understand what your solicitor is saying. You need to go back to your solicitor and tell him you will not be declaring yourself bankrupt unless you have to and that you will be doing your best to make sure you will pay the shortfall once a payment agreement is agreed.
At least then you will struggle financially but will have saved your house through MRS and then afterwards it will be obvious you wont be able to pay the shortfall and you will end up missing payments and then the company you owe money to will make you bankrupt.
We are in the same boat, going through MRS and want to declare ourselves bankrupt, preferably straight after MRS completes but we wont be able to do this and will have to go through the motions of showing willing with the shortfall payments for a while before going through BR. Shelter arent saying you cant go BR they are saying wait before you do it. Miss a few payments, show that you are struggling and then BR will happen automatically.
Contact your solictior explain you will make shortfall payments and struggle on and get this MRS through, the main thing is you save your house. Then struggle on for a good year after with payments then if you want start missing some (this will, of course happen automatically as you will not be able to afford to make the payments) then the company may declare you BR or you can declare yourself BR.
Hope this helps, sorry I cannot be of more help, if its any consolation we are going through exactly the same thing.
marushkababy xx0 -
Hi Marushkababy
We have already signed the shortfall agreement- I couldn't remember doing it but we have. I was told today by National Debtline that if we have signed this agreement, the debt wouldn't be included in B/R proceedings and they can continue to chase us for it.
However, I think we will have to cross that bridge later as for now we need to secure our home.
We are due for completion at the end of March because after that the MRS rules are changing for the worst.
Would be good to hear your experiences
Kind regards0 -
How is the mortgage rescue progressing strawberryblonde and marushkababy?0
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Hi Angie
We had the valuation last week, can you believe it has taken this long just to get to this stage. I am not complaining because at least we get to stay in our house whilst the process is going on. I am trying not to think too much about what may happen in the future as that is when the panic attacks start and I get stressed. We have also had final balance statements from mortgage company and secured loan company and with late payment charges, arrears and interest...boy do we owe some money! That is stressful. The next few months will be crucial now as the housing association liaise with the mortgage company and secured loan company to get to some agreement on what they will take off the debt and what they will insecure off the property. Make or break now really. So I am worried but just trying to cope the best I can. The only positive I can see about not living here anymore is that we will be away from our very nosy neighbour, but I am even willing to put up with her if we get to stay.
marushkababy xx0 -
marushkababy wrote: »Hi Angie
We had the valuation last week, can you believe it has taken this long just to get to this stage. I am not complaining because at least we get to stay in our house whilst the process is going on. I am trying not to think too much about what may happen in the future as that is when the panic attacks start and I get stressed. We have also had final balance statements from mortgage company and secured loan company and with late payment charges, arrears and interest...boy do we owe some money! That is stressful. The next few months will be crucial now as the housing association liaise with the mortgage company and secured loan company to get to some agreement on what they will take off the debt and what they will insecure off the property. Make or break now really. So I am worried but just trying to cope the best I can. The only positive I can see about not living here anymore is that we will be away from our very nosy neighbour, but I am even willing to put up with her if we get to stay.
marushkababy xx
I am so sorry I thought i had replied !I don't get on much nowadays unfortunately.
Glad the valuation is done now, hope you might have had some feedback by now?
I think it was only a couple of weeks for us between valuation and getting an appt with Housing Assoc to discuss it.
GOOD LUCK xx0 -
I have followed Angie's journey with great interest and am so pleased that it has finally worked out. I am a 64 year old widow with a mentally disabled son. I used to work as a driving instructor when I bought this house and took out the mortgage four years ago, but I have had to give that up for health reasons. I received a letter from my mortgage lender back in May telling me about the mortgage rescue scheme, with an offer to fast trak, which I accepted. Within a couple of days I had an appointment with the housing department. He told me I was eligible and being as it was the beginning of the financial year, there shouldn't be a problem. He also told me I needed a letter from the lender confirming that every other option had been explored.
That was in May, and I wrote to them straight away asking for confirmation. I heard nothing, and I wrote again in August with a copy of the original letter. Again I have heard nothing.
During all this time arrears have accumulated since they reduced my pension credit, but I have been paying what I can, but I have had no contact from them regarding the arrears, nothing telling me I needed to arrange to pay or anything else. The man from the council said they needed to go for repossession before they could consider me, which they have now done and I have sent the letter to the council.
It all seems very quiet after Angie's experience, albeit that was started three years ago, and I am not sure what to do next. I haven't gone to the CAB about it, as it was put in motion by the lender and now I am not sure whether I should do so.
Any advice would be appreciated.0 -
I have followed Angie's journey with great interest and am so pleased that it has finally worked out. I am a 64 year old widow with a mentally disabled son. I used to work as a driving instructor when I bought this house and took out the mortgage four years ago, but I have had to give that up for health reasons. I received a letter from my mortgage lender back in May telling me about the mortgage rescue scheme, with an offer to fast trak, which I accepted. Within a couple of days I had an appointment with the housing department. He told me I was eligible and being as it was the beginning of the financial year, there shouldn't be a problem. He also told me I needed a letter from the lender confirming that every other option had been explored.
That was in May, and I wrote to them straight away asking for confirmation. I heard nothing, and I wrote again in August with a copy of the original letter. Again I have heard nothing.
During all this time arrears have accumulated since they reduced my pension credit, but I have been paying what I can, but I have had no contact from them regarding the arrears, nothing telling me I needed to arrange to pay or anything else. The man from the council said they needed to go for repossession before they could consider me, which they have now done and I have sent the letter to the council.
It all seems very quiet after Angie's experience, albeit that was started three years ago, and I am not sure what to do next. I haven't gone to the CAB about it, as it was put in motion by the lender and now I am not sure whether I should do so.
Any advice would be appreciated.
Hi
Not sure what is happening here as something should really have been put in writing from the Local Authority and the next stages clearly set out.
Have you had the standard advice that goes with the Mortgage Rescue Scheme from a debt & money advice worker?
If the lender has not heard anything from anywhere then they will more than likely follow their possession procedure.
If you have an actual possession hearing date then you definitely need to get in touch with people and get things moving ASAP.
The possession hearing will need addressing with an adjournment likely to be needed to allow the application to the scheme to procede or you will likely end up with an eviction warrant somewhere down the line.
Contact the housing department again, try ringing or even visit their offices as the clock is ticking.
It cannot hurt contacting the CAB or telephone Shelter.
I believe some CAB offices are taking referrals via the lenders etc but this may not be the case in your area.
Keep all your letters and other documents safe.
Read up as much as you can on the Mortgage Rescue Scheme so you understand the application procedure as it is not always plain sailing so to speak.
Hopefully you will find that things are in hand, but with the Mortgage Rescue Scheme nothing would surprise me.
Plenty of good information on the Mortgage Rescue Scheme via the CAB link below
http://mymoney.nedcab.org.uk/moneyadvice/mortgagerescuescheme.asp
Come back to us and let us know how you get on as there should be people on here who can guide and support you further.
Best Wishes0 -
Thanks for that. I am a bit mystified as since I received a summary of what had been discussed from the local authority, I have heard absolutely nothing. It is also not like my lender to not reply to letters. The man from the council told me that the lender needed to go for repossession before they could do anything, and as I have now heard from the court I have sent all the papers to him. I will ring him on Monday now, as I was hoping to get a reply. I shall also send the defence forms back telling them what is going on and I will write to the lender again. I am confused because it was their idea in the first place; I had never heard of this scheme until the lender told me and they straight away emailed the council.
I know it sounds daft, but I really hate talking on the phone so I have put everything in writing. However, I will have to ring the council if nothing turns up tomorrow.0
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