Repossession!!!!

zag2me

This is also why when people take out a mortgage they should save at least 6 months worth of payments in a savings account just in case of loss of income.

dunstonh

So much for the peace of mind these insurance policies are supposed to provide:mad:

Most self employed would be better off with a permanent health insurance policy than an accident, sickness and unemployment policy. PHI is underwritten to your circumstances whereas the ASU isn't.

It does seem strange that the lender are starting repossession after a relatively short period. Is there any history of missed payments in the past?

Gorgeous_George

I can understand why GMAC make an additional charge.

The market is competetive. If they didn't charge people who move away from the normal payment plan then everybody would have to share the costs of the additional admin burden. This would lead to their rates being higher than the lenders next door and custom would suffer.

Absolutely barking that they impose unreasonable costs. Maybe a similar case to the unreasonable and ILLEGAL charges made by banks.


GG

SusanCarter

dunstonh wrote:

Most self employed would be better off with a permanent health insurance policy than an accident, sickness and unemployment policy. PHI is underwritten to your circumstances whereas the ASU isn't.

What is PHI? Is there anywhere I can find info about it?

dunstonh

PHI = permanant health insurance.

It's "proper" income protection in that it will pay out until the end date (often set to retirement age) or when health returns. It is underwritten at point of sale to your health and occupation. Only thing it doesnt have is unemployment cover but that is often next to useless for self employed individuals. Insurance companies are unable to cancel it regardless of the number of times you claim or how long you claim over. Budget versions are often very weak products (like most budget products of any type) but if you are young and have a clerical or low manual work occupation, then it can be very cheap. Often cheaper than ASU.

Tootsie_Roll

dunstonh wrote:

It does seem strange that the lender are starting repossession after a relatively short period. Is there any history of missed payments in the past?

In the original post it states - 'We could only claim for insurance after he had been off for a period of 13 weeks, so at 13 weeks my husband sent off his claim (which we are still waiting for, after over 2 months!!!).'

So 5 months arrears built up - not surprising at all that they have started repo action.

homer_j_3

Personally speaking, I would take on board what conrad has said with regards to contacting the compliance department. If you write to them, write to their bracknell address and not their skipton address as their compliance department is not there and it will probably get passed to the arrears people to answer if sent to Skipton.

I would also make a point that you are waiting for the insurance company but you have to ask yourself the question, what if they fail to pay out? What will you do then?

Without trying to be seen as an unsympathetic ogre, you should have only been 2 months in arrears if you had the relevant emergency funds in place for the 13 week deferred period.

If you have never had this money in place then I would also ask the question to the adviser that you got this product from, why a 13 week period was suggested if it was reasonable to expect that you would never be able to keep up with payments should you find yourself in a position like you are? Surely a 4 week deferral period would have been more appropriate? This is another point you can make for misselling.

Anyway, I would be chasing the insurers up daily and ensure that you record this in a diary and keep records like letters and your telephone bills to demonstrate to the judge should worst case scenario occur that you have made every attempt to get the arrears repaid.

Infact keep a record of everything you do with regards to this now as if the lender can convince the court that you have buried your head and are unable to get yourself out of this then you could face your home being reposessed. By the sounds of it if the insurance doesnt pay then you are in deep deep trouble. Sorry if this sounds bad, but I think its only fair that you understand that you are relying on something that is not a definite.

hitchins

Thanks everyone, no we have NEVER missed a payment prior to my husband been ill, which is one of the things I have outlined in our defence. Unfortunately, we never had no emergency funds in place, hindsight is a wonderful thing, and it is something we will be doing from now on, it's the old mentality "oh it won't happen to me"?!!!

As regards to whether or not the insurers pay out or not, it isn't something I am banking on to be honest, we have made an agreement to clear the arrears, and are paying them that. Although it would be a bonus if they did pay out as it would certainly shorten our arrears re-payment time. I will just be so glad to get it over and done with and then I can relax a bit.

Once again, thanks to everyone for your valuable advice. :beer:

Josie64

Conrad wrote:

You can remortgage as long as you have enough equity btw.

Note that lenders are now regulated under the provisions of the FSA. One of the key pdirectives is known as TREATING CUSTOMERS FAIRLY (TCF).

Make sure you write to the lenders compliance department (use recorded delivery and keep copies) and ask them to write to you regarding the FSa's TCF initiatives and how they have met the obligations placed upon them by TCF. There are specific rules on repossesion AS A LAST RESORT TOOL.

Dont give up gal.

been reading this post as yesterday we missed our first mortgage payment , and we are wondering how long before repossesion?

could we re-mortgage even though we have done that twice already? our mortgage is with GE Money , 443 month interest only ( are they a sub-prime lender?) , hubby been off work since february and since april living on 90 a week ( that includes 20 per week income suport!) , we have talked and argued and cried and we have decided we are going to sell and move back into rented council property ....we are going to CAB next week

good luck !

AMILLIONDOLLARS

Be warned!!

If you sell your house and make yourselves Deliberately homeless, the council will not rehouse you. Your house will need to be repossed before the council can help, and even then they will only do it if you have kids.

Do you work? if there anyway you can bring in extra income in the short-term until hubby is back in work? You can't re-mortgage unless you have money coming in, if you can't pay your mortgage now, how on earth would you expect to pay for the remortgage, if you miss anymore payments no one will touch you with a barge pole:eek: