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

Depth_Charge

Hi

Part of the MRS eligibilty criteria is that you basically have to be at serious risk of losing your home and all other avenues to stay in it have been explored.

If you have been assessed for the scheme and it has been accepted that you meet all the criteria then the lender going to court for a possession order after seems a little daft and a waste of time and money, but dont take anything for granted with this scheme including assuming that the lender or their acting solicitor wont object to it at court.

Without knowing the details of your individual circumstances and the application it is hard to realistically guide you other than whats already been put.

More info as above if you can.

A couple more questions also...

Are you looking at the mortgage to rent element of the scheme?

How long before the possession hearing date?

MargaretB_2

Depth_Charge wrote: »

Hi

Part of the MRS eligibilty criteria is that you basically have to be at serious risk of losing your home and all other avenues to stay in it have been explored.

If you have been assessed for the scheme and it has been accepted that you meet all the criteria then the lender going to court for a possession order after seems a little daft and a waste of time and money, but dont take anything for granted with this scheme including assuming that the lender or their acting solicitor wont object to it at court.

Without knowing the details of your individual circumstances and the application it is hard to realistically guide you other than whats already been put.

More info as above if you can.

A couple more questions also...

Are you looking at the mortgage to rent element of the scheme?

How long before the possession hearing date?

As my mortgage is interest only there is no point in going for the equity loan bit. The date they have fixed is 12th November. I was told by the housing department when I had my meeting with him that they would have to actually go for repossession before they would do anything, so I have I suppose been waiting for that.

I shall phone him this morning and see if anything has developed and I shall phone the mortgage company as well to see what has been done, if anything.

I don't see why they should object since it was their idea in the first place, and it means they will get their money back. There won't be a shortfall, in fact there only 60% of the value is mortgaged.

marushkababy

Hi MargaretB

Do you want to go through the mortgage rescue. I would speak to the CAB again and ask them to specifically put you forward for mortgage rescue, be firm. You would qualify as you have a disabled son. my experience with the mortgage rescue was very straightforward I have to say. I cant say enough good things about the housing officer who dealt with our case.

Whist your application for mrs is going through all action from your mortgage company will be stopped, so that takes some of the stress away.

It sounds to me like you have spoken to various people but none of these people are taking ownership. Our experience was we went to the cab, they referred us for the mrs then the whole buying process started, including surveys etc. we then had a letter saying we had been accepted for mrs. In the mean time the mortgage company had set a court date for repossession. I wrote to them and explained as we were going through mrs, the rules were you stop all action until mrs is sorted one way or another and they stopped the action.

If you need any info or have any questions get in touch. Pm me and I will do my best to answer them.

I know what you are going through, my family and I have been exactly where you are so please don't feel alone.

marushkababy xx

MargaretB_2

marushkababy wrote: »

Hi MargaretB

Do you want to go through the mortgage rescue. I would speak to the CAB again and ask them to specifically put you forward for mortgage rescue, be firm. You would qualify as you have a disabled son. my experience with the mortgage rescue was very straightforward I have to say. I cant say enough good things about the housing officer who dealt with our case.

Whist your application for mrs is going through all action from your mortgage company will be stopped, so that takes some of the stress away.

It sounds to me like you have spoken to various people but none of these people are taking ownership. Our experience was we went to the cab, they referred us for the mrs then the whole buying process started, including surveys etc. we then had a letter saying we had been accepted for mrs. In the mean time the mortgage company had set a court date for repossession. I wrote to them and explained as we were going through mrs, the rules were you stop all action until mrs is sorted one way or another and they stopped the action.

If you need any info or have any questions get in touch. Pm me and I will do my best to answer them.

I know what you are going through, my family and I have been exactly where you are so please don't feel alone.

marushkababy xx

Now I am very confused. My mortgage is outstanding at about £100,000, the property is worth on the open market £175,000. I understood that going through the mortgage rescue scheme meant that I would be offered that amount less 10%. Now the man from the council is saying that I shall be given the amount of the mortgage, less 10%. Which would mean that all the equity I have in this house will disappear and the housing association which buys it will be in for a real bargain.

Can this be right? I am going to have to go to the citizens advice because that is not what I understood it to be.

Depth_Charge

MargaretB wrote: »

Now I am very confused. My mortgage is outstanding at about £100,000, the property is worth on the open market £175,000. I understood that going through the mortgage rescue scheme meant that I would be offered that amount less 10%. Now the man from the council is saying that I shall be given the amount of the mortgage, less 10%. Which would mean that all the equity I have in this house will disappear and the housing association which buys it will be in for a real bargain.

Can this be right? I am going to have to go to the citizens advice because that is not what I understood it to be.

Hi

Are you sure this is what the man from the council is saying as it is nonsense if we are talking about the goverment run Mortgage Rescue Scheme.

Has he put anything in writing and what is happening with regard to the possession hearing as this is paramount.

A point worth noting is that looking at the £175,000 value to £100,000 mortgage it would appear that there may be an issue with the eligiblity criteria on the 75% - 120% rule however I understand there may be a certain amount of discrection & flexibility here.

https://www.gov.uk/mortgage-rescue-scheme/eligibility

the value of your mortgage (and any loans taken out against your home) is between 75% and less than 120% of the value of your home

Like a previous poster here has put nobody seems to be taking ownership and if so then you need to get further advice from such as the CAB ASAP.

Best wishes

MargaretB_2

Yes, that is definitely what he said. Everything I have read tells me that a housing assoc will buy my house for 90% of its market value. He is now saying that they will only pay 90% of the outstanding mortgage, which is £90,000. Obviously they would be getting a mega bargain, and if that is likely to be the case, I would rather sell to my daughter for that price and rent back part of it from her.

He was not at all like he was when we met in May and literally had a go at me because I hadn't put myself and my son on the housing list. I don't see why the hell I should have to, as that is not a condition of the MRS.

One of the reasons I hate phoning people is because I can't cope with people moaning, and that is precisely what happened. The Citizens Advice Bureau were fairly helpful and have said they will send a representative with me to the court hearing, which is good.

I think I may have to rethink things now. I have been not working since March due to my back problems and I suppose depression, but I have an opportunity to return to work and perhaps persuade the lender to spread the arrears. They are actually not that bad and if I return to work can soon have them paid off.

I don't think the council are very helpful to people like me who have a substantial amount of equity in their property. Your quote about the mortgage being between 75% and 120% is the first I have heard of that. Nobody has told me about that before and I have not seen it, or at least not noticed. So I am out of the running anyway, as my mortgage is quite a bit lower that 75%.

marushkababy

MargaretB they really don't go on how much mortgage you owe they get a survey done, a valuation then offer you 90% of that value. Nothing to do with how much mortgage you owe! There should be someone at your local council who is in charge of dealing with mrs, you really need to speak with that person. It angers me when people in charge can't get their facts right, all they end up doing is adding to the stress! All the best xx

MargaretB_2

Having decided I would pay extra, which I can't really afford, to pay off the arrears, today I got a letter from the council telling me that the lender had agreed to the mrs and a letter from the lender with a form to fill in.

Now I don't know what to do! I think now I have the opportunity I shall go the the scheme and see what materialises; at least then the court hearing will be adjourned.

MargaretB_2

I spoke to the mortgage lender yesterday and discovered that the reason I hadn't heard anything is because whoever logged my two letters requesting their acceptance (in May and August) into their system, didn't bother to reply and has now left. I also discovered that the council man had been on to them about this request and was told they had heard nothing from me, which is rubbish.

They have apologised but that will be of no use if there is no money left in the coffers for this financial year as there was back in May. I am furious.:(

Angiepange

MargaretB wrote: »

I spoke to the mortgage lender yesterday and discovered that the reason I hadn't heard anything is because whoever logged my two letters requesting their acceptance (in May and August) into their system, didn't bother to reply and has now left. I also discovered that the council man had been on to them about this request and was told they had heard nothing from me, which is rubbish.

They have apologised but that will be of no use if there is no money left in the coffers for this financial year as there was back in May. I am furious.:(

I bet you are!!! It's no help to say I am not suprised, although as the mrs has been running a few years, I would hope for more efficient communication between all involved by now .

I realy hope you have a positive outcome MargaretB. Keep on chasing all involved, don't let up, follow up every email, letter, phone call and keep pushing your case. You will get there. Keep updating, if only to vent, I know I needed to!!!! Good luck.

Angie