Mortgage Arrears advice please

babyg100

Hi,

I've very stupidly got into arrears on my mortgage - 8 months worth which is nearly 3k. My mortgage company have sent me a financial planner which I need to complete to prove that I can afford my monthly payments which I can now plus some extra for the arrears if I cut down my stupis spending.

Will the accept my offer of repayment or will they want to cut their losses and repossess anyway. I'm terrified of losing my home and can't believe I've allowed the situation to get so bad.

BG
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Soph86_2

Hi BG,

Don't panic just yet, mortgage companies tend to reposess as a last resort. But, you do need to play ball with them. As far as I know each company is different in how many months they allow you to get into arrears before they will start reposession proceedings.

Can we have a bit of background for you - are you in a DMP, have any debt etc? Are you in arrears on any other priority bills (council tax, water, gas, electric)? Are you in arrears on any credit cards/loans if you're not already in a DMP.

It would be useful for you to post a full SOA (statement of affairs) so the helpful people on here can take a look at your situation and offer ways to help.

BW,
Soph

babyg100

Thanks Soph,

No I'm not in a Debt managment plan but I have around 30k of debt with various companies, some CCj's etc. To be honest I'm not even sure of athe overall position I just try to get through each month without a major diaster!

I'm at work now but tonight I'll try to go through everything and post a proper list on here.

I'm going to write to my mortgage company along with the financial planer and try to beg for time to pay the arrears.

BG
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Tixy

I would probably complete the statement of affairs using this template http://www.makesenseofcards.com/soacalc.html and post on here before you complete the financial planner and send it back to them - that way we may be able to suggest if you have forgotten any costs or have entered costs figures that the mortgage company will consider unreasonable (eg if you say that you live alone and spent £250 on food a month they won't consider that reasonable).

You also need to consider whether you'll have to make reduced payments to your unsecured debts whilst you repay the mortgage arrears. Your mortgage company will expect that if you cannot get on top of your arrears within a couple of months, which it sounds like you won't be able to do so.

babyg100

Thank-you I'll do that tonight. Just had a quick look and I don't have the correct info to hand.
I feel sick, I'm so ashamed I've let myself get into such a terrible state

Tixy

A lot of people get into a mess with their money, the good thing is you are tackling it now and hopefully you can get back on top of things and in control of your finances, it might not be easy or quick but there should be a way through it.
Because its a mortgage you do need act now you have faced the problem to ensure you don't let things get any worse.