Questions re: reposession etc..

lisa.89

Hi,

We have 2 properties and 1st one is now in 3 months arrears (was tenanted and they have only just moved out - rent arrears). We are planning to let this be repocessed (neg eq of around £40k). We have not had many phone calls but do have a huge pile of letters..

We are planning to let our house go too, also in neg eq and can no longer afford to live here..

Can I check, when we move into rental in next couple of months - do we just wait for mortgage co's and creditors to track us down?? We will go for new tel no. when we move so it would just be letters... ?? Should we talk to any of them or just ignore everything and just keep the letters they send?

As I have said in previous posts, we are not going to sign any forms, we will wait for the courts to repocess.

Another worry is council tax, if repo takes longer than the 6 months the properties are allowed to be empty for??

Thanks x

sundays

You are liable for council tax even when the properties are empty so you need to check with the council the rules, i think it is only 50 percent discount , if you dont pay you will get a liability order - 2 months then the blooming baliffs will be on your back and they will trace you. Ctax arrears are not automatic in BR esp with a liability order.
Id expect repossession to take months and months not 6 months , you need to be two months at least but in todays times id say a min of 6 months, then the paperwork , then the date , even if you dont turn up, judge may suspend to give you the opportunity , then lender may not go so fast for a baliff warrant, ive seen people in homes for 18 months on failing the first charge, and still there after 2 years on for non payment of a 2nd charge ie secure loan with no court orders in place, esp with negative equity.
Why not remain and get a lump saved up whilst not paying the mortage, and let the IVA people bankrupt you.

If you abandon then id tell the lenders becasue if the property is empty and gets broken into and damaged and many are getting broken into for the pipe work /copper boilers etc , then you are responsible for the damage as well.

lisa.89

Thanks for reply.. I mentioned 6 months as this is how long a property can be empty before we are liable for paying c.tax again (on 2nd property that was rented).


This is really worrying me know.. when we leave house, would it be best to pay council tax on both properties till BR (not sure how)
We want to get into rented asap as want to be away from phone calls and dont want to drag the process out.

Does anyone else have any advice from their experience with paying council tax on repocessed properties??? thanks

CIS

Does anyone else have any advice from their experience with paying council tax on repocessed properties??? thanks

Once re-possessed the property (as long as its unoccupied) is exempt from Council Tax indefinitely until its disposed of or occupied - you would need to claim a Class L exemption from the local authority in question.

Ctax arrears are not automatic in BR esp with a liability order.

Council Tax arrears under a Liability Order can be included in a bankruptcy without any issues.

Maizy

Hi Lisa

Our property was exempt from council tax for 6 months due to it being empty, not sure what would have happened after that as our house was repo'd during that 6 month period but I got the impression we could apply for exemption again had it not yet been repo'd as the property was empty. Give the CT office a call anonymously if it helps and see what they say. The previous arrears on the council tax (prior to moving) were written off, no questions asked and the CT office were really helpful whenever we rang them. They were the only office/creditor we had to speak with because we still had links with the property etc.

It was 6 months before we got a suspended repo order and a further 5 months missed payments for the locks to be changed/repo'd when we failed payments 2nd time. Was pretty quick all in all but we probably could have stayed in the property a tad longer to save up BR fees quicker without having to do all the overtime available. The problem with that of course is the stress and strain it creates on family life and the pressure of not knowing where you are going to live. In many ways we don't regret the way we did it as it meant our next step BR could be planned a couple of months after moving and we could get on with our lives. Maybe if you state your intentions early on if you return the keys for example, it may speed up the process for you. Its possible us returning the keys to the lender with a short note helped when it went to court.

Once you leave you can set up a royal mail redirection service and just wait for BR although if your creditors have your mobile number, this can be pretty stressful but ends once you go BR. You should not need to contact any creditor if you are intending going BR in the near future.

If you decide to give up your house, once you have finished off and had the utilities close your meters off, you can just send the key back with a note stating your intention to hopefully set the ball rolling. Either way, giving up your home and looking for rented is an extremely stressful process and can offer all kinds of doubts and means of putting off the inevitable.

However, if you have done your figures/research and are sure giving up your home is the only option, then in my honest opinion I would just put every penny into saving for moving/BR and get on with it. You could get away with staying for several months without paying your mortgage to help you financially but its whether you can cope with not knowing how quickly they will act. We are all different and have to go through this by whatever means we can manage.

Wishing you well as always.

lisa.89

Thanks for replies.I was thinking of doing the note as the flat is now empty but NRAM want us to sign something, which I have been advised not to do. Maizy - were you asked to sign anything when you sent the note to mortgage lender? I really want to speed up process on flat as I have heard NRAM can be slow to repossess..

I am going part time in next month or so, due to child care and there is no way we can then afford to pay this mortgage and the secured loan on top, plus pay into IVA...

I would prefer to leave house sooner rather than later as I will be at home more = more time to worry over letters and phone calls..

God its true what I have read on here, one minute I feel in control, the next its all panic and worry!!! I am taking a lot of the worry I feel as my husband has kind of left all the research on this down to me... xx

Maizy

Hi Lisa

I have read many a time that NRAM ask their customers to sign something as a matter of course, our mortgage lender didn't do that. Once they got the key back they barely contacted us. The note can be written in block caps with not signature just so they know its empty and they can go ahead and repossess but not sure if they will do so on that basis. I think a lot of folk are going through this at the moment.

I went part time when we moved so we could balance family life properly and not have the strain that goes with juggling everything, there is only so long you can do that. We just dont have free childcare on tap like many folks do and its vital for me to have quality time with family/kids.

We were so scared of going through it all so I know how hard it is and how difficult it can be to take the leap. My husband is fantastic but the way it fell was I did all the research and relayed the information, it just seemed easier that way. He does his share in other areas but it can feel sometimes like the pressure is on you to get all the information right.

In the cold light of day, there are many things that will get thrown up in conversation and on here. However, the bottom line is you cannot afford to stay and need to sort family stuff out so the only course of action is to move then go BR providing all necessary advice has been taken. You seem sure this is your course of action and over time it really will all fall into place although its hard to believe it at the time.

I seemed to be filled with stress and anxiety one minute then free and at peace soon after BR. Its not been easy Lisa but its been necessary and you move on, you get over it bit by bit and even only 5 months in we feel we have put lots behind us, just wish we had done it one year sooner when we first looked into it, still no regrets.

Good luck, let us know how you get on with house hunting. x

confuzzled2012

hi ya
god I feel so much better now i've moved into rented, i've not paid my mortgage for 3 months now, moved out end of March, wanted to move out sooner so i had a choice of where to move to because of my kids school etc, luckily found somewhere nearby so no-one had to change school. I've contacted my mortgage and said i want them to repo the house, they are preparing court papers and said it'll be in court in the next month, then 28 days from that to get the house. I think it's best to let mortgage know your new address as you wouldn't want it to go to court and get CCJ etc without knowing, then all the hassle that goes with that, i've not informed anyone of my change of address yet except for water, i'm with new gas/electric, obviously have done council tax and got an exception for 6 months. Is this right?
Hope it goes ok.
Because i'm not living in the house i'm not thinking about it all on a daily basis and it's been much better.

lisa.89

Thanks both - yes I believe it is 6 months but I was told today that as we are both going bankrupt the title passes to the OR in bankruptcy so our argument after six months is that we no longer have title to the property so council tax is not applicable... hope that is correct..

I think we will feel a little better once we are out of here... will let mortgage co's know when we move.. just address I think - don't want to bring our current tel no! xx