Repossession!!!!

Josie64

AMILLIONDOLLARS wrote:

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:

we are bidding on council houses and when we have a council house thats when we put house up for sale, so we won't be deliberatly trying to make ourselves homeless,
yes I do work, self employed, run my own business , but need hubby's help so it has been bringing no income in while he was off work, which we declared to the DSS, so if I had got another job then anything i would have earned would just have been deducted anyway, hubby was back at work last week , so we are just taking things week to week but being realistic we can't afford the house any more

so going back to my question , we have missed 1 payment , how long before repossession proceedings start? what happens now?

Conrad

Josie64 wrote:

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 !

People can of course remortgage even with 10 months arrears (I did this for a client recently) however it all comes down to the % equity one has. If there isnt much equity remortgaging with poor credit can be difficult.

You mention going into rented. For some this is the best option especially where income is tight and sporadic and the future holds no particular answers.
If u have any money leftover from selling invest it wisely (not with the Man who knocks on the door from Provident and not in any Insurance company savings plans advertised by celebs on daytime TV btw).

AMILLIONDOLLARS

Well how the system has changed!!!

I didn't know that you could Bid for a council house while still being a private homeowner, surely this system is up for abuse, for example you could win the bid but instead of selling your house, you rent it out instead, (not say you would of course) what are the safeguards against this sort of thing happening? and what about the people already in homeless accommodation waiting to be rehoused, this all seems very strange to me Have you checked with your local housing association (whatever) the in and outs of your proposed plan??

But surely Financial Institutions will want to see proof of income before agreeing to a remortgage, even if a person is ten months in arrears as I said before, how the system has changed!!

jamesd

Josie64, talk with your mortgage lender. Explain that you are in the process of selling your property yourself and ask them for a payment holiday or whatever other facility they will offer while you take care of your obligation to them by selling. Don't make any payment agreement that you will not be able to stick to - that would make things worse, not better.

Josie64

thats one of the agreements of bidding for council house , we have to sell the house within six months, we have already spoken to the council who know why we want to move back into rented.

we bid on houses but there are lots of houses which are classed as 'priority' , ie for homeless and regeneration etc ,

we have spoken to our mortgage lender , their reply was " if its not paid by the 3rd of the next month then you will have arrears and extra interest" and they are charging us for the priviledge! , I think they are one of those sub-prime lenders

its not up for sale yet until we get a council house cos knowing our luck we will end up selling and not have anywhere to live!!!

mortgage 75,000 and its worth 90,000 and some loan companies (non- high street) say there is no equity in the house!! , I make that 15,000 thou, is that correct?

jamesd

Extra interest is expected - you're not paying off some of the capital, so you end up paying more interest. Same for their charges and arrears. All are OK so long as you're keeping in touch with them and they know that you're working on ending the situation and aren't getting upset about not being paid while you sort it out.

If it does sell for 90,000 then there would be 15,000 less the arrears, whatever late fees there may be, any early repayment charges and any end of mortgage fees, like deed return. It's worth asking about those end of mortgage costs now, in part to help to reinforce the impression in the mind of the lender that you really are selling, so they don't need to waste their money on legal fees by taking the reposession route.

If there is an early repayment charge, do check when it ends, or perhaps falls to a lower rate - it's possible that a delay of even one month in the completion of the sale could save you a lot of money in early repayment charges.

It might also be a good idea to just send the mortgage company a status letter once a month, just so they know that you haven't forgotten them.

If you say who the mortgage company is one of the professionals here might be able to tell you more about what to expect from them as things proceed.

Josie64

thanks for advice , Mortgage co is GE Money (formerly I Group)