Letter from building society re non payment of mortgage, advice please!!!

Anne2

Hey all!

Having decided to go ahead with voluntary possession (can't keep up mortgage payments) we cancelled mortgage direct debit, so no money went out on Oct 1st. Received a letter from BS (Manchester) this morning (wasn't expecting anything so quickly!) acknowledging cancellation of direct debit and requesting payment within 7 days. It then says if account is in arrears at end of month there will be a charge and if we can't make payment to call arrears team. Here are my 2 questions, any response greatly appreciated!!!

1. Shall I call the arrears team or just leave it?? If I do call them what do I say!?!?

2. I was under impression it would be longer before we heard from BS. Our plan is to save what we would have paid for mortgage oct/nov then move into rented accommodation start of dec and then contact BS for voluntary repossession. Do you think we will have that long?? We have two small children so we want to have time to find somewhere to move to and get settled, basicallly should I be worried that BS will want us out before december??

Sorry if I'm being over worried, receiving the letter this morning makes all of this real and slightly scary! Just didn't expect to hear from them so soon.

Thx all

lee316

Hello Anne,
I would call them, but would not tell them about your plans. Just tell them that you are finding it hard to meet the payments. Offer them a token payment of say 10 pounds, otherwise you will incure charges.
We are in the same position, and haven't been paying the mortgage since June. They have been very cooperative with us so far, and still haven't mention reposession, which is what we are going for. We are going to sit it out till the repo takes place before finding someone else to live.

Now I know it is slightly different with us, but you have to think about this carefully. Even with voluntary reposession it still might take them up to a year to actually enforce it, in which time you are still liable for payment of council tax and all the bills. If you find somewhere else in the meantime, you can get six months exemption from council where you don't pay tax, but after that time if the house is still not repo'd you will be liable for tax again.
Are you BR already or are thinking about going BR or neither? In which case do you really want to incure more debt, because sooner or later the mortgage company will be putting on charges.

Personally I would wait till after Xmas before contemplating a move.

MicheH

Just to add that with our mortgage company they will take possession of our house 7 days after the date we told them we moved out. Food for thought as every company is different.

nev32

hi, as lee316 say's, dont tell them your plans abour br or moveing out. was was or still am in the same boat. we went br 10th sept. moved house from our mortgaged property to rented before br so would pass the credit check. its has to be 3 months of missed payments before they car start proceedings for repo or when u have moved out u can then tell them that u are giving the house up. we have done the same & have now got a letter to sign & send back with keys. although we did get advice on whether we should sign or not as there is such a thing as a deed of aknowledgment that you should not sign.

MicheH

Nev, look closely at the wording of the letter you have to sign. Be wary of signing for any liability for any shortfall.

nev32

we have been to cab about the letter, it does not seem to be a letter saying that we are liable for any shortfall. i have submitted a copy of this letter in a previous post, if you could look at it that would be great. cab couldnt give a solid answer although they feel it will be ok. they say they wont repo unless we hand keys back & sign.

skylight

They WILL repossess - just not voluntarily; if you dont sign. They will then have to take you to court for repossession instead. This can take some time though.

nev32

yeh thats tghe thing. we want it off of our hands really. also we dont want to be liable after 6 months if they dont repo before then for the c/tax. oh what to do hey??

Anne2

Hey all!

Thx for your responses, all very helpful! Yes, I've read lots on here about signing nothing from the building society, be careful! Nev, will you have to tell the agency/landlord that you are now bankrupt?? We would like to stay longer lee and save a bit more money, but with two tiddlers we feel much happier if we're in control of when we go, get them settled in new place and find childminder (don't want to find one where we are now and then do it all again when we move, v unsettling for them I think); I go back to work end of dec so want move etc all done by then, then I'll apply for BR. Will any charges incurred for non-payment of mortgage be included in bankruptcy?? Working myself up to phone the BS, I'm the worlds worst liar, hope I don't get myself in a pickle. Does anyone know what the Manchester Building Society are like in this kind of situation??? Are they likely to take an age to repossess/be difficult about doing vol repo???

nev32

Hi anne2, no im saying nothing to my ll as we did say to other estate agents before we went br & got nothing in return for being honest although they are all different. that one that we didnt say antything, we got. we have 4 kids so couldnt mess about. im glad we did though as we got a 12 month contract & our or will not contact the ll as there is no rent arrears as we have only been there 3 weeks. not to say there will be of course.

tigerfeet2006

Nev please be aware that your OR will most likely tell your LL of your BR., It IS NOT THE POLICY OF ALL or's not to contact them.