SMI shortfall-cant pay, risk of repossession

iwillgetthereintheend

I wonder if anyone can kindly give me some advice.

I have qualified for SMI as the 13th Week has elapsed.

During this period I have incurred arrears and their is a shortfall in the amount of SMI i recieve and what my mortgage payment is.

As I am in receipt of ESA-income based, I cannot pay off the arrears nor the shortfall each month.

My mortgage company have told me that they are taking repossession proceedings due to the arrears and not being able to contribute to the shortfall, can they do this?

Ideally, i would like to stay in my home, but does anyone know what my options are?

I am so ill and stressed with it and i think i have no alternative but to sell and go into rental, is this my only option?

I have told them I have been on the market for sale for 4 months and reduced the asking price before xmas to help but they are still proceeding (they say 3 months is there limit!!). I have even made suggestions in writing of capitalising the arrears and coming to an arrangement over the arrears (of a very small amount) or even a payment holiday. They refused all my suggestions and i feel helpless, there is plenty of equity in my home, so i am minimal risk to them but i just feel helpless.

Is there any other help i can get to pay off the 13 week arrears and help with the shortfall each month to get them off my back till i sell?

I have asked them to put in writing why they refuse my suggestions but they refused as they said the "recorded" telephone conversation is sufficient.

They can see i have always paid my mortgage right up until i became unemployed and never missed a payment.

NASA_2

I think this would be better in the mortgage area of the board - there is nothing that I know of that benefits can do.

dmg24

How long do you expect to be away from work for? They do have the right to commence repossession proceedings against you, and it does seem understandable if you are unable to pay towards the arrears. There is a government rescue scheme, but few people seem to have had any luck with it.

MrsManda

I cannot offer much advice but it may be worth looking into the different schemes detailed in the link below
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013261

Oldernotwiser

What's the financial situation of the other person who's on the mortgage?

strongheadwoman

iwillgetthereintheend wrote: »

I wonder if anyone can kindly give me some advice.

I have qualified for SMI as the 13th Week has elapsed.

During this period I have incurred arrears and their is a shortfall in the amount of SMI i recieve and what my mortgage payment is.

As I am in receipt of ESA-income based, I cannot pay off the arrears nor the shortfall each month.

My mortgage company have told me that they are taking repossession proceedings due to the arrears and not being able to contribute to the shortfall, can they do this?

Ideally, i would like to stay in my home, but does anyone know what my options are?

I am so ill and stressed with it and i think i have no alternative but to sell and go into rental, is this my only option?

I have told them I have been on the market for sale for 4 months and reduced the asking price before xmas to help but they are still proceeding (they say 3 months is there limit!!). I have even made suggestions in writing of capitalising the arrears and coming to an arrangement over the arrears (of a very small amount) or even a payment holiday. They refused all my suggestions and i feel helpless, there is plenty of equity in my home, so i am minimal risk to them but i just feel helpless.

Is there any other help i can get to pay off the 13 week arrears and help with the shortfall each month to get them off my back till i sell?

I have asked them to put in writing why they refuse my suggestions but they refused as they said the "recorded" telephone conversation is sufficient.

They can see i have always paid my mortgage right up until i became unemployed and never missed a payment.

Hi i am in a very similar situation to yours and i am going through immense worry at the prospect of repossession.You do not mention if you have any dependant children living with you?I have a baby and another child and am a single parent but this doesn't appear to make any difference to the lender.I have done extensive research in the last 2 months over what help is available for these type of shortfalls and sadly there isn't much out there per se.However I have written to my MP a very strong letter asking for a review of the welfare system and i urge you to do the same.The more people write in the more likely we are to obtain a response.Keep pressing and go to their office in person until they agree to see you.Do not give up.I am doing the same and i encourage anyone at risk of losing their home due to welfare cuts to do the same.
In the meantime see if you can get a charity to help,or if you can take out a loan from family or friends.What i realised during my case is how much power the lenders have in the law as soon as there are arrears.They are encouraged by the government to exercise forbearance toward struggling borrowers but they seldom do in my experience.Is there any way you could sacrifice other non essential outgoings and make efforts to pay the mortgage?The lender may back down in that case.I strongly suggest you try this,because if you insist to the lender you cannot pay the mortgage they can take possession in court on these very grounds.If it goes to court and I hope it will not,the lender knows that the judge is more inclined to refuse a possession order if you can prove you are keeping repayments each month.
Otherwise could you take a lodger?Also have you asked lender if you are on an interest only mortgage for now in order to lower payments?
Also the lender has to comply with the Council of mortgage lenders rules and they should be regulated by FSA.If they are unreasonable(which they seem to be ) ask them in writing to treat you fairly and sympathetically.Keep written records of all communication with them.You are entitled in the law to complain to FSA and financial ombudsman.Whilst your complaint is ongoing the repossession proceedings must be placed on hold which will buy you extra time to sell or perhaps re-balance financially.It's a lot of work but unfortunately it looks as if the lenders encourage phone negotiations as an extra strategy to prevent you from having written records against them.Best of luck and let us know of your progress.I intend to start a petition to 10 Downing street about the cuts in interest rates and the inequality in the welfare housing payments and will post link here.

silvercar

If they take you to court, then you must attend.

Explain your situation to the judge and ask for the arrears to be capitalised onto the mortgage. Their is a precedent in a case called Norgan, whereby payment of the arrears can be spread over the whole remaining term of the mortgage.

This will only help you if you can afford the current payments and to contribute to the arrears by the Norgan ruling at the very least. If you can't find the money in your budget to do that, then there is little other help available.

If you do end up in court, you are persuading the judge to grant a suspended possession order. This does give the lender to get possession much quicker if you fail to keep up with the agreed and court stamped new payments. So the advice is to only agree to something affordable.

Of course the difference between the minimum the lender will accept and what you can afford may be insurmountable, but if you can make cuts in your budget to afford the mortgage payments it could enable you to keep your home and remember moving home in itself costs money.

welshmoneylover

strongheadwoman wrote: »

Hi i am in a very similar situation to yours and i am going through immense worry at the prospect of repossession.You do not mention if you have any dependant children living with you?I have a baby and another child and am a single parent but this doesn't appear to make any difference to the lender.I have done extensive research in the last 2 months over what help is available for these type of shortfalls and sadly there isn't much out there per se.However I have written to my MP a very strong letter asking for a review of the welfare system and i urge you to do the same.The more people write in the more likely we are to obtain a response.Keep pressing and go to their office in person until they agree to see you.Do not give up.I am doing the same and i encourage anyone at risk of losing their home due to welfare cuts to do the same.
In the meantime see if you can get a charity to help,or if you can take out a loan from family or friends.What i realised during my case is how much power the lenders have in the law as soon as there are arrears.They are encouraged by the government to exercise forbearance toward struggling borrowers but they seldom do in my experience.Is there any way you could sacrifice other non essential outgoings and make efforts to pay the mortgage?The lender may back down in that case.I strongly suggest you try this,because if you insist to the lender you cannot pay the mortgage they can take possession in court on these very grounds.If it goes to court and I hope it will not,the lender knows that the judge is more inclined to refuse a possession order if you can prove you are keeping repayments each month.
Otherwise could you take a lodger?Also have you asked lender if you are on an interest only mortgage for now in order to lower payments?
Also the lender has to comply with the Council of mortgage lenders rules and they should be regulated by FSA.If they are unreasonable(which they seem to be ) ask them in writing to treat you fairly and sympathetically.Keep written records of all communication with them.You are entitled in the law to complain to FSA and financial ombudsman.Whilst your complaint is ongoing the repossession proceedings must be placed on hold which will buy you extra time to sell or perhaps re-balance financially.It's a lot of work but unfortunately it looks as if the lenders encourage phone negotiations as an extra strategy to prevent you from having written records against them.Best of luck and let us know of your progress.I intend to start a petition to 10 Downing street about the cuts in interest rates and the inequality in the welfare housing payments and will post link here.

There are working couples who are struggling to make ends meet, why do you think those who are on benefits should receive more money?

Can't you ask the children's father to contribute toward the mortage to help you out?

dogfish12

Repossesion is a financial disaster for the homeowner. You will be ripped off royally for the equity that is in the house when it goes up for auction. A few people I know have sold their houses and have bought static caravans which now have central heating and double glazing. I lived in a holiday home courtesy of my parents for years and had a great time. Drastic, I know, but perhaps something to consider.

allen35

Speak to your local council, there were schemes where they or housing associations buy your house from you (certain circumstances) and rent it back to you, it's worth a try

Jowo_2

The Shelter website has excellent information for home owners struggling to pay their mortgages and prevent repossession. They have a homeowner helpline. Their site details the various govt schemes available to home owners.