house repossession

desperado1_2

hello, i am a newbie requiring a bit of advice. I am currently 4 months in arrears with my mortgage to GE Money (due to husband ill and then his business not doing well). We are going to court on the 29/1 for a repossession hearing.

My dilema is we offered proposals to GE money paying them £1500 on the 20/1, they agreed and are applying for a suspended possession order, the problem is we are not going to be able to pay it as my husband hada contract but has been postponed until February due to the weather. When we go to court will GE money have right to automatically possess us as we did not carry out our proposal.

second question if we do get repossessed how will GE money sell our house
we currently owe them £170000 including early redemption figures and a secured loan to Kensington for £20000 including early redemption, totalling £190000, our house is valued at about £225000, how much more will go on charges and selling costs. When the house sells will both mortgages be paid off automatically if there is enough money and will we get any back if there is any surplus.

Finally, with three small children and we did not intentionally make ourselves homeless will the council rehouse or are we looking to rent privately

thank you for reading this long thread and thank you for any advice you can give us

epz_2

why not just sell the place and use the £35K on rent and living expences till hubby is well

BobProperty

desperado1 wrote:

hello, i am a newbie requiring a bit of advice. I am currently 4 months in arrears with my mortgage to GE Money (due to husband ill and then his business not doing well). We are going to court on the 29/1 for a repossession hearing.

Whatever you do, ill husband or not, attend that hearing. If you don't turn up, you lose. IMHO it's as simple as that.

desperado1 wrote:

My dilema is we offered proposals to GE money paying them £1500 on the 20/1, they agreed and are applying for a suspended possession order, the problem is we are not going to be able to pay it as my husband hada contract but has been postponed until February due to the weather. When we go to court will GE money have right to automatically possess us as we did not carry out our proposal.

Yes, because they will argue you haven't kept your side of the deal.

desperado1 wrote:

second question if we do get repossessed how will GE money sell our house we currently owe them £170000 including early redemption figures and a secured loan to Kensington for £20000 including early redemption, totalling £190000, our house is valued at about £225000, how much more will go on charges and selling costs. When the house sells will both mortgages be paid off automatically if there is enough money and will we get any back if there is any surplus.....

They will either try selling through a local EA on the basis of best offers within 7 days or it will go to auction.
Yes they will charge fees, early redemption fees, court fees etc.
If it sells for more than you owe in total, you get the surplus back. If it doesn't you will get a CCJ probably as they will want paying the shortfall and they will take court action to try to get the shortfall off you.
I note both your loans are to well known non-status lenders.

desperado1_2

Because I dont think my mortgage company will hang on for that long

desperado1_2

we had to take mortgages out with non status lenders as my husband is self employed.

So in the long run you think we will lose our house, do you have any advice about looking for further accomadation

BobProperty

The question is: How are you planning to get out of the situation? If selling it is your way out then put it on the market. If you are going to pay off the arrears then make an arrangement with the lender.

silvercar

The only way I can think of to prevent the repossession is if you have a buyer lined up who is prepared to move very quickly to complete the sale.

I would have thought it unlikely (but maybe worth a try) that one of the quick sale companies would be interested as there is not sufficient equity left in the property to make it worthwhile for them. Generally they are looking at paying 70-80% of purchase price. The advantage of this would be that your credit record is not blemished by a repossession and you get a few more weeks in your property. The disadvantage is you get no equity returned to you.

If you want to follow this idea have a look on singingpig.co.uk where a lot of the operatives post. Whatever you do, don't pay out for one of these companies to survey your property - the more honest ones survey themselves at their expense.

TBH if they do repossess, they will want to sell it on quickly and will probably look for offers in the range £200-210k. So the amount of equity returned to you after costs may be small.

The council MAY decide that you deliberately made yourself homeless and may not provide you with housing; if they do it could well be in a hostel or B&B initially. Your best bet may be to secure a private rental before you are repossessed so that your credit rating is not damaged further.

I would suggest checking that you receive all the benefits you are entitled to and posting on the debt board for further advice.

Best wishes to you in a difficult situation!

desperado1_2

thank you so much for all your help and advice.

I have it in my head that we will lose our house, the main worry for me now is finding other accomadation, as I have three small children.

If we look to rent privately we may only get a 1 bedroom place because that will be all we can afford. So we will be packed.

Can anyone tell me can you claim for housing benefit if you are self employed, as my husband is not earning much at the moment, but because he is self employed he does not have wage slips etc, we only receice family benefit, ctc and wtc

thanks again for all your help

Bestthingsinlifearefree

Maybe post a post about your situation on the Debt Free Forum, you will get a much bigger responce there and advice from people who have been in or are in a similar situation.

I wish you well.