repossession Order

Jarrnick

I have a court hearing on Tuesday as my mortgage company want to take possession of the property.I made an arrangement to pay through there solicitor and they never took payment and said they never recieved my D/D mandate back. As soon as they informed me I called them and made the payment (they where not keen to take it) and have made all further payments but after the first payment was made I recieved court papers with the order for next Tuesday.

In order to pay the mortgage I have rented my house out and moved in with parents because my mortgage is only about 60% of current market value and I thought this would be the best way to save my equity.

I can pay the mortgage and all arears would be cleared within 2 years if I am allowed to keep the property and the tennant allowed to stay in the house. Will it not help me that I have a tenent in the property? or the fact I am not living there go against me.I also have noted that the figure quoted on the court paper for the monthly payment is incorrect (by about -£150) so will that matter that the paper is wrong?.

Thanks

Jarrnick

Thrugelmir

No guarantee of a tenant. So no reason for your lender to accept that argument.

Why not sell up and rebuild your credit rating?

Jarrnick

duplicate see below

Jarrnick

Jarrnick

Thanks for your reply, There is a dispute on the property over bounderies etc. I did look into trying to sell but was told that with the dispute it would be unlikely we would sell.
I have a tenent who is a single parent and the council is paying the rent, she has a 12 months agreement and is getting settled there.

Jarrnick

CloudCuckooLand

Print off any records of payments. Take them to the court hearing.

If there has been a measurable change in your financial position that allows you to resume mortgage payments, the judge may well be lenient. Whether this will stretch to two years for arrears to be made up, I do not know.

However, if nothing much has altered income-wise, then to now state you can meet mortgage payments will not endear you to either Lender or judge. Yes, the tenant helps, but was that with consent of the Lender?

Irrespective of the financial problem, the boundary issue needs resolving. The two could be done alongside of, i.e. independantly, of each other.

Then, if in a few weeks the Lender gets permission to possess you might be in a position to sell quickly.

Not doing anything about the boundary will leave you tied to the possession order, denting your equity substantially, as the Lender will add fees and costs, on top of probably selling for less than you hope.

Jarrnick

Hi again thanks,The reason I moved out was so the mortgage could be paid and having a council tenent will help this,I have just started working as well so my financial circumstances have changed.I did inform the mortgage company that I was not there and they did not have a problem with that if the mortgage got paid.

I have explained why the first payment was late but the payments since are upto date and ontime.

Will the fact that they have the figures incorrect on the paperwork help my case or not?.


Just to add the property was bough cash but we took out the mortgage at a later date, the company did not even do a survey on the house.The mortgage was for a buisiness that failed.

Cheers

Jarrnick

Vesuvia

It can take about 2 months for a company to be allocated a hearing date. As you were dealing with your lender's solicitors this indicates they had already issued proceedings so the fact that you received the hearing date after you had had a few conversations and made some payments just means the action had been started already - and lenders usually continue with action at least until they have the protection of a court order. Please don't think you are being hounded.

As long as you are able to evidence that you can afford to pay your mortgage subscription and £x.xx extra towards the arrears it is almost certain the district judge will make an order suspended on those payments. As long as you pay the amount promised, on time each month, the order cannot be enforced. It may help to take a budget planner along with you (simply list your income and outgoings) and your last couple of months wage slips and bank statements to verify your figures. 2 years is certainly a reasonable enough timescale over which to repay the debt (providing your mortgage term does not expire before then.) Most companies can set a DD up over the phone these days so you could try that.

I wouldn't recommend paying for legal representation. The courts are very sympathetic towards people with mortgage arrears. There is loads of free advice available, you could try the national debtline 0800 881 8891.

The fact that the property is tenanted (with or without the lender's consent) doesn't tend to make a difference to repossession proceedings however most lenders do have more formal letting criteria they expect to be adhered to other than just stating they don't mind who lives in the property as long as the mortgage is paid -you may need to rethink your insurance arrangements for example -so I think you should look into that once you have got the hearing out of the way.

TrickyDicky

One big question - do you have permission from the mortgage company to rent the property? BTL mortgages are usually more expensive than residential.
if you dont, then you are in breach of your mortgage contract and the lender can recall the mortgage immediatly and kick the tennants out. Any buildings/contents insurance you have will also probably be invalid.

It might be best just to sell up asap.

Jarrnick

Hi All,
I called today to make my ususal payment and told them I will see them on Tuesday,They have said that if I pay the amount I am paying + a bit more they will ask for a suspended order.I agreed verbally and they said they would send out the paperwork to me, I said I will still turn up on Tuesday.
Do they normally do this?.

Jarrnick

Vesuvia

How did you go on?