Help needed please

kymm_2

Hi, I need some advice regarding my mortgage. I discovered last year, after splitting up with husband, that there had been no payments made on our joint mortgage for 9 years! During this time, apart from apparently sending 3 letters, the Building Society had made no attempt to inform me of this situation and as a consequence the arrears have built up to approx £27,000. I have only 4 years left on the mortgage and there is no way that I could pay the arrears off over that period. I am disabled/housebound and unable to work. I am receiving benefits. After discovering this situation I contacted the Building Society myself to try and arrange some way of paying the arrears. I was told that I would be sent I&E forms but these never arrived despite me telephoning them again. I wrote letters to them that were never answered. I have now received a County Court Posession Notice to attend a hearing in 2 weeks.

I do not have anything to do with my husband and would not be able to rely on him to help with this situation.

Obviously I do not dispute the arrears but wondered if I contact the Financial Obudsman to register a complaint that the Building Society were also negligent in letting this situation go on for so long without making attempts to recover the arrears sooner. Also would it be possible to counter-sue for negligence. I am desperately worried and would really welcome some constructive advice. Thank you.

AndrewSmith

Before you do anything else contact the CAB for immediate assistance on your position and what your next move should be.

I would do this immediately this afternoon if I were you.

I am amazed that after 9 years they have not taken posession already.

Make the phone call today, you need to be as prepared as possible for the hearing at the courts.

Andy

MortgageMamma

kymm wrote:

Hi, I need some advice regarding my mortgage. I discovered last year, after splitting up with husband, that there had been no payments made on our joint mortgage for 9 years! During this time, apart from apparently sending 3 letters, the Building Society had made no attempt to inform me of this situation and as a consequence the arrears have built up to approx £27,000. I have only 4 years left on the mortgage and there is no way that I could pay the arrears off over that period. I am disabled/housebound and unable to work. I am receiving benefits. After discovering this situation I contacted the Building Society myself to try and arrange some way of paying the arrears. I was told that I would be sent I&E forms but these never arrived despite me telephoning them again. I wrote letters to them that were never answered. I have now received a County Court Posession Notice to attend a hearing in 2 weeks.

I do not have anything to do with my husband and would not be able to rely on him to help with this situation.

Obviously I do not dispute the arrears but wondered if I contact the Financial Obudsman to register a complaint that the Building Society were also negligent in letting this situation go on for so long without making attempts to recover the arrears sooner. Also would it be possible to counter-sue for negligence. I am desperately worried and would really welcome some constructive advice. Thank you.

Oh you poor thing. And what a pig for not paying the mortgage without telling you. Andy is right in what he says to do. If you can't get into the CAB they make special arrangements to see disabled people. Who si your mortgage lender? Its almost beyond belief that they have let this go on so long, surely must be an administrative error? Have you spoken to the lender verbally?

One thing I would say is to registered with your local authority immediately for housing. You should be prioritised as you are potentially homeless, housebound and disabled so they should get you a bungalow or something. Your CAB advisor will help with this.

Just out of interest, how much in total is owed on the mortgage? Have you been making payments towards it yourself? Even though you are on benefits there may still be some lenders willing to consider your case. There is still a small chance you could get out of this mess and remortgage

Keep posting so we can all help out.

Warmest wishes

MM

kymm_2

Hi, Thank you for your advice. I could not get through to CAB but will try again first thing in morning.

In answer to the question, the outstanding amount of my mortgage is approx. £56,000 including the arrears. I would look into remortgaging but have no idea where to start.

Once again, thank you.

MortgageMamma

OK well it would be handy for you to talk to a broker and get professional advice. Many lenders will accept state benefits such as disability living allowance, carers allowance, and working families tax credit etc as income for mortgage payments. It may just be possible that this could be done for you, you but you would have to have your income assessed by a broker first to see if you have the affordability for the mortgage.

Out of interest, who is your lender?

regularsaver1

kymm, i'm sorry to hear your story

but you ex can't just walk away from this - if he is named on the mortgage?then he is still liable

kymm_2

The mortgage is with Cheltenham & Gloucester. I have spoken to them and made a formal complaint as they let this go on for 9 years but their reply was that is was my responsibility to make sure payments were made. Obviously I understand their point but I still can't believe they did nothing about it until I contacted them on discovering the situation.

AndrewSmith

regularsaver1 wrote:

kymm, i'm sorry to hear your story

but you ex can't just walk away from this - if he is named on the mortgage?then he is still liable

In the eyes of the lender and the T&C of the mortgage each applicant is jointly and severably liable for the debt, for exactly this reason.

The lender reserves the right to chase you both or each individually for the entire amount outstanding.

I agree that under the auspices of morality, no he should not walk away however the lender is correct in making attempts to collect the entire debt from the remaining party.

AndrewSmith

kymm wrote:

The mortgage is with Cheltenham & Gloucester. I have spoken to them and made a formal complaint as they let this go on for 9 years but their reply was that is was my responsibility to make sure payments were made. Obviously I understand their point but I still can't believe they did nothing about it until I contacted them on discovering the situation.

Any joy with the CAB yet?

I do not think that a remortgage would be the answer for you right now. With basically 9 years of arrears and a pending posession hearing you would be subject to the highest rates available if, in fact, accepted at all.

You need to concentrate on a resolution with the C&G right now, see if they will allow the arrears to be capitalised (added to the original loan) thus allowing you to make a somewhat fresh start with them. Even if this is done on their Standard Variable Rate it is likely to still be cheaper than the sort of rate you would be offered on a remortgage.

You need to be prepared when you attent the court hearing. Sit with someone to work out what the payments would be assuming the C&G will add the arrears to the loan. Then prepare yourself to demonstrate that these payments would be affordable to you (either by extending the term of the loan initially or switching to interest only in the short term to get the payments down if necessary).

If you go to the hearing fully prepared and showing that you are willing to work with the lender to resolve the issue then you may have a chance of the Courts awarding in your favour and agreeing to a suspended posession order. This is where a payment plan is put in place and agreed in the courts. You do then have to stick to it rigidly.

This will at least allow you to remain in the property. Once you have a reasonable payment history behind you, then it may be appropriate to look at switching lenders to get rid of the suspended posession order.

Andy

regularsaver1

yes i agree that they are jointly liable

the c&g are saying that you should be responsible - but i feel that for 9 years they should of made it more aware so feel they were a bit lapse there - i'm suprised telephone calls were not made to you??
did you not see statements or payments on bank account ect?

I hope you get it all sorted soon

Arch-Angel

MortgageMamma wrote:

Oh you poor thing. And what a pig for not paying the mortgage without telling you. Andy is right in what he says to do. If you can't get into the CAB they make special arrangements to see disabled people. Who si your mortgage lender? Its almost beyond belief that they have let this go on so long, surely must be an administrative error? Have you spoken to the lender verbally?

To OP - does your disability have a recognised support charity (i.e. MS, Lupus etc.)? They may have some access to legal advice (other sufferers family members are sometimes known to offer support to help the charity organisation) that you could make use of. I honestly don't know what help they could offer other than emotional support - but even that will be useful in your current plight.

Best wishes.