Advice please RE Reopssession

We_Are_The_Mods

So things have been dragging on and I haven't made a mortgage payment for about 6 months. Today I recieved a letter saying that Legal action has commenced, now I knew it was coming but actually getting the letter has shaken me a bit.

My main concern was this statement in the letter;

"You are personally liable for any financial loss suffered by us as a result of the property being repossessed and subsequently sold"

Now I was led to believe that I had to sign (or not) something to say I was liable for any shortfall, I am planning BR as I have many other debts and I was hoping any shortfall would be covered in the BR? but I haven't starting any balls rolling with BR as I was waiting to see how long I had left in the house.

My other question is, as well as the repossession letter I also recieved a charging order Nat West have applied for after the court determined a £1 p/m repayment on their debt. I also presume the BR should take care of this as well?

A rough estimate of my position is that the house isn't worth what's left on the mortgage, never mind the arrears and the charging order, so I'm praying that all of this is taken care of with the BR.

Many thanks in advance for any help.

WATM.

fermi

We_Are_The_Mods wrote: »

My main concern was this statement in the letter;

"You are personally liable for any financial loss suffered by us as a result of the property being repossessed and subsequently sold"

Before you are made BR, then you are liable for any shortfall, whether or not you sign something to that effect with the repossession papers.

BR wipes out that liability, even if you signed that before the BR.

What you mustn't do is sign the repossession papers confirming liability AFTER your BR date.

The charging order is made final before your BR, it will then have the same status as any shortfall on the property. Once the house is sold, it will all go into the BR.

If you go BR before the charging order is made final, then it goes into your BR straight away like any other debt.

Does that make sense?

We_Are_The_Mods

Thanks Fermi, yes a bit clearer now.

So if the Repo drags on and doesn't go through until after BR then I must be sure not to sign anything?

To be honest I can't see me going BR before the Repo so it may not be an issue but I prefer to know all the facts regardless of whether they apply to me or not.

Some advice on timing the BR would be very helpful, I'm looking at moving in with my mum as she has a spare room, would I be better off doing this sooner and just leaving the house, or staying here as long as I can? at the minute because I'm not paying any debt repayments and I live alone, I can afford the utility and food bills without a problem, so staying isn't a problem. Do they give you plenty of warning of the date they want you out?

fermi

We_Are_The_Mods wrote: »

So if the Repo drags on and doesn't go through until after BR then I must be sure not to sign anything?

Correct.

We_Are_The_Mods wrote: »

Some advice on timing the BR would be very helpful, I'm looking at moving in with my mum as she has a spare room, would I be better off doing this sooner and just leaving the house, or staying here as long as I can? at the minute because I'm not paying any debt repayments and I live alone, I can afford the utility and food bills without a problem, so staying isn't a problem. Do they give you plenty of warning of the date they want you out?

I think they should give you at least a month?

I think it tells you on the Shelter website? I'll pop and have a look.

fermi

Here we go. Worst case scenario.

Actually 28 days.

What is an 'outright possession order'?

What is an 'outright possession order'?

An outright possession order means that you won't have the right to live in your home after the date given in the order.

This is usually 28 days after the court hearing.

If you think you need more time, tell the judge at the hearing. You may be given more time if you are in a difficult situation, for example, you are ill or you have young children, though any delay is unlikely to be for more than 56 days.

Even if your lender has been given an outright possession order against you, it may still be possible to negotiate with your lender to persuade them not to evict you. At any time before you are actually evicted, you may ask the court to suspend an outright possession order if there are good reasons to do so, for example, you didn't receive the court papers. If you attended the original court hearing, this is usually only worth doing if your circumstances have improved since then.

If you don't leave by the date in the court order, your lender can apply to the court for the bailiffs to evict you. You can't be physically removed from the property by anyone other than the bailiff. It is often only a matter of days before the bailiffs come, but you should receive notification of the date beforehand. They can remove you and your family from the property, but they can't use violence to do so.

fermi

As far as the timing of the BR is concerned, up to you I suppose.

Whenever is best for you.