Repossession??

kimlyn_2

We sold our house in April of this year and moved into rented before the sale was completed,for two reasons.
One because we really didn't get on with our neighbours and two because it is going to be cheaper renting than paying our first and second charge on the property.(a saving of £275 per month).
Because of a dramatic drop in income(£1200 per month),we are receiving help from the cccs and are on reduced payments with all of our 19 creditors.
We stopped making the full monthly payments to both of our mortgage companies because we were told the sale would be quick,however after many leasehold problems,it now looks like the buyer is going to pull out at the last minute(she is not paying the deposit requested by her solicitor).Is it possible to have the property repossessed and still carry on paying our other creditors or is repossession a form of bankrupcy.
You may say we were silly to move from our house before we completed the sale,but because letting agencies do full credit searches,which we failed,we had to grab the first property with a private landlord that we could.Also I didn't want my husband on a gbh charge because of the neighbours.
I really need some help on what to do.

CFC

Repossession is not bankruptcy. However, if you owe more on the house than the building society/bank can sell it for, you will still owe that money. It doesn't get written off.

If the house sells for more than your debts, the charges on the property will be paid off and any excess returned to you.

Hope this helps.

CLAPTON

presumably there was no exchange of contracts? if so there was no contractual sale.

if you stop paying all your non secured debts can you afford to pay the mortgages?

how much is the house worth and how much is/are the mortgages?

kimlyn_2

NEW PROBLEM.
Apparently our buyer is having trouble getting deposit from family member,but sale should exchange and complete next week.
Problem now is second charge settlement figure with CitiFinancial.Work this one out:
Settlement Figure 1st August:
Account Balance £60,533.59
Daily Interest £19.37070
Last Payment Date 01 May 2006
Settlement Date 02 September 2006
121 Days Interest Due £2,343.86
Plus 180 Days Early
Settlement Charge £3,486.73
Total Interest £5,830.59
Account Balance
at 27th July 2006 £60,533.59
Settlement Figure Valid
Until 02 September 2006 £66,364.18
Final Settlement Figure £66,404.18

THEN

Settlement Figure 12th September 2006:
Account Balance £60,533.59
Daily Interest £19.37070
Last Payment Date 25th August 2006
Settlement Date 02 October 2006
117 Days Interest Due £2,269.72
Plus 180 Days Early
Settlement Charge £3,486.73
Total Interest Due £5,756.45
Account Balance at
26th August 2006 £60,533.59
Settlement Figure Valid
Until 02 October 2006 £66,290.04
Final Settlement Figure £66,340.04

How can my account balance be the same even though I paid £655.26 on 25th August.
By the way I have this charge and my mortgage with Abbey which is around £33,000.The property is only being sold for £102,500.Just enough to cover everything.

lynzpower

I just wanted to say IO really have no idea here, but im hoping someone will be along to help you more .
#

KatrinaC_2

kimlyn wrote:

NEW PROBLEM.
Apparently our buyer is having trouble getting deposit from family member,but sale should exchange and complete next week.
Problem now is second charge settlement figure with CitiFinancial.Work this one out:
Settlement Figure 1st August:
Account Balance £60,533.59
Daily Interest £19.37070
Last Payment Date 01 May 2006
Settlement Date 02 September 2006
121 Days Interest Due £2,343.86
Plus 180 Days Early
Settlement Charge £3,486.73
Total Interest £5,830.59
Account Balance
at 27th July 2006 £60,533.59
Settlement Figure Valid
Until 02 September 2006 £66,364.18
Final Settlement Figure £66,404.18

THEN

Settlement Figure 12th September 2006:
Account Balance £60,533.59
Daily Interest £19.37070
Last Payment Date 25th August 2006
Settlement Date 02 October 2006
117 Days Interest Due £2,269.72
Plus 180 Days Early
Settlement Charge £3,486.73
Total Interest Due £5,756.45
Account Balance at
26th August 2006 £60,533.59
Settlement Figure Valid
Until 02 October 2006 £66,290.04
Final Settlement Figure £66,340.04

How can my account balance be the same even though I paid £655.26 on 25th August.
By the way I have this charge and my mortgage with Abbey which is around £33,000.The property is only being sold for £102,500.Just enough to cover everything.

These figures are complete gobbldygook to me, but is it a case that your last payment only went to pay charges and interest rather than attacking the capital?

Kat

tyllwyd

Did the payment of £655 leave your bank on 25 August? If so, maybe it hadn't reached CitiFinancial by 26 August, so it wasn't included when the second settlement figure was calculated.

kimlyn_2

The payment was paid over the phone by card and they have noted that the last payment was on 25th August,but surely the account balance should reduce not stay the same.
The only thing I can see different is the interest charges and this is because the amount of days they have taken away(117 instead of 121).
Have been in contact with them and they say everything is correct.I can't see how.

CLAPTON

although the detailed figures aren't clear to me, it would seem that the settlement figure for the second quote is 30 days later than the first, therefore extra interest of 30 days x £19.37 will have been added which is about £581. The OP paid 655 of which 581 was due for extra interest for the extra month which seems reasonable leaving only 74 to reduce the settlement figure which is approximate right.(not exact but close).

kimlyn_2

I think I understand it now,it isn't far out is it.Thanks for your help.

tyllwyd

There is still something strange about the figures. Why does it say that 121 and then 117 days interest is due? The difference between the date of the most recent payment and the settlement date is about a month, which is obviously only about 30 days. Is the loan in arrears - so that as Clapton says, they took £581 for the interest in the month between the two statements, and then the money over went towards decreasing the arrears of interest, but didn't come off the capital. If interest is £19 per day, then decreasing the number of days in arrears from 121 to 117 will be 4 x £19 = £76.