Letter to mortgage lender - not paying anymore

badgerscash

Hello again,

After seeking seeking advice from two separate debt organisations we are going to proceed with the repossession of our former home. Please can you look over this letter and give any thoughts/improvements.

We have arranged for new bank accounts and plan to send this letter before the next mortgage payment is due.

Once the house is sold we will consider our options, we have accepted that BR for both of us as this is a joint mortgage is most likely.


My details
02 July 2012
Banks address

Dear Sir/Madam,

Re: Mortgage account number xxxxxxxxxxxxxxx

I am writing concerning my mortgage, which I have held with your company for five years.

As you may be aware, I have recently experienced some difficulties making payments towards my mortgage.

Due to my wife’s’ health problems we had to leave our home in x to receive specialist care in x. We were unable to sell the property without a significant mortgage shortfall, at that time you gave consent for us to rent the property. Despite having various tenants since 2009 we have always taken our debts seriously and used savings to cover mortgage payments when the property has been empty. Becoming landlords was not our intention, during this time we have had three tenants two of which have left owing money and leaving the house with damage. This has been a very stressful and financially draining experience. In addition to my wife’s ill health the financial responsibility of this property has impacted on my mental health and I am prescribed medication for anxiety and depression. Unfortunately our current tenant has lost his employment and has not paid any rent, without receiving a rental income we are unable to make payments to you the lender. I am also unable to sell the property as I cannot cover the associated costs.

Due to above circumstances we are requesting that you offer us any assisted sales process to mitigate the mortgage shortfall on the property. We cannot afford to pay anything towards this debt, please see my attached household budget sheet. I understand that any sale outside of a repossession and property auction would achieve the highest sale price. However, if you are unable to assist with the sale of the house we will cooperate in order for the house to be sold at the earliest opportunity and hand back the keys.

It is regrettable that we find ourselves in this situation, the house is in approximately £30,000 negative equity and due to our income we see no other alternative.


I look forward to hearing from you soon.

Yours faithfully,

sniggings

no idea what the correct course of action is with this but he letter sounds great to me.

Hope this work out for you mate, it will be a weight off once it is all sorted out :beer:

National_Debtline

Hello there.

Sorry to learn about your situation. The letter looks good as it explains your circumstances and position very clearly. We hope that you can take advantage of an assisted sale scheme as it should help in ensuring your shortfall is as small as possible. Once the house is sold the shortfall would be regarded as a 'non-priority' as it would be no longer connected to the property.

We've a guide on mortgage arrears which touches on the various options you have available at this stage, you can find it here:

http://www.nationaldebtline.co.uk/england_wales/guide.php?page=guide-mortgage-arrears

Best wishes,

National Debtline.

Depth_Charge

badgerscash wrote: »

Hello again,

After seeking seeking advice from two separate debt organisations we are going to proceed with the repossession of our former home. Please can you look over this letter and give any thoughts/improvements.

We have arranged for new bank accounts and plan to send this letter before the next mortgage payment is due.

Once the house is sold we will consider our options, we have accepted that BR for both of us as this is a joint mortgage is most likely.


My details
02 July 2012
Banks address

Dear Sir/Madam,

Re: Mortgage account number xxxxxxxxxxxxxxx

I am writing concerning my mortgage, which I have held with your company for five years.

As you may be aware, I have recently experienced some difficulties making payments towards my mortgage.

Due to my wife’s’ health problems we had to leave our home in x to receive specialist care in x. We were unable to sell the property without a significant mortgage shortfall, at that time you gave consent for us to rent the property. Despite having various tenants since 2009 we have always taken our debts seriously and used savings to cover mortgage payments when the property has been empty. Becoming landlords was not our intention, during this time we have had three tenants two of which have left owing money and leaving the house with damage. This has been a very stressful and financially draining experience. In addition to my wife’s ill health the financial responsibility of this property has impacted on my mental health and I am prescribed medication for anxiety and depression. Unfortunately our current tenant has lost his employment and has not paid any rent, without receiving a rental income we are unable to make payments to you the lender. I am also unable to sell the property as I cannot cover the associated costs.

Due to above circumstances we are requesting that you offer us any assisted sales process to mitigate the mortgage shortfall on the property. We cannot afford to pay anything towards this debt, please see my attached household budget sheet. I understand that any sale outside of a repossession and property auction would achieve the highest sale price. However, if you are unable to assist with the sale of the house we will cooperate in order for the house to be sold at the earliest opportunity and hand back the keys.

It is regrettable that we find ourselves in this situation, the house is in approximately £30,000 negative equity and due to our income we see no other alternative.


I look forward to hearing from you soon.

Yours faithfully,

Hi

The letter looks informative enough to me.

Have you spoken direct to your mortgage lender yet and do they actually operate an Assisted Sale Scheme as some do not even where there is equity. If they do operate such a scheme then they should send you details of their procedure including timescales.

In response to your letter your lender will more than likely wish to speak to you further regarding your overall circumstances and will probably ask you what you intend doing long term with regard to any shortfall and other debts before giving any decisions on any assisted voluntary sale scheme etc.

NHAS link below that you may find useful -

http://england.shelter.org.uk/__data/assets/pdf_file/0008/417086/Assisted_voluntary_sale.pdf

You have put that B/R is most likely so if your lender does not want to know so to speak then they may have to lump it.

Could you put up your full Statement of Affairs (SOA) as there should / may be people on here who can help you further.