Mortgage Rescue Scheme or Vol Repo??

dawny75

Hi, we are at the start of legal proceedings by NRAM and First Plus.

We've been to the local housing and been accepted provisionally for the Government Mortgage Rescue Scheme. Only drawbacks being it could fail at any time and is a lengthy process. Also they only purchase your house at 90% of market value which leaves us £18,000 in debt which we will have to sign liability for to complete and we cannot include it in future bankruptcy. Total unsecured debts would then total £32,000. Lady at the housing said if we refuse help and then turn up to her homeless the council will not rehouse us unless there was a genuine reason for refusing the scheme which I think being that much in debt is!! We have weekend to think about it and are booked in for some debt advice next week.

Other option is stop paying mortgage and secured loan which we already have, secure rental, hand keys back, not sign any liability forms, go bankrupt for any shortfall which would be less I think because first and second lender will want a good price for house to claw back their money. Only worry is being accepted for private rental with bad credit history, i dont work due to ill health and hubby was made redundant in May. Housing Benefit would deffo be a temporary option as hubby is job hunting.

Really dont know which way to turn!!!!! Any advice welcome....thanks x

debt_doctor

dawny75 wrote: »

Hi, we are at the start of legal proceedings by NRAM and First Plus.

We've been to the local housing and been accepted provisionally for the Government Mortgage Rescue Scheme. Only drawbacks being it could fail at any time and is a lengthy process. Also they only purchase your house at 90% of market value which leaves us £18,000 in debt which we will have to sign liability for to complete and we cannot include it in future bankruptcy.That is not true. You cannot enter in to any arrangement that circumvents statutory legislation - I've done several mortgage rescues. Total unsecured debts would then total £32,000.Which you could place in to BR should you choose. Lady at the housing said if we refuse help and then turn up to her homeless the council will not rehouse us unless there was a genuine reason for refusing the scheme That is true. which I think being that much in debt is!! We have weekend to think about it and are booked in for some debt advice next week.

Other option is stop paying mortgage and secured loan which we already have, secure rental, hand keys back, not sign any liability forms, go bankrupt for any shortfall which would be less I think because first and second lender will want a good price for house to claw back their money. Only worry is being accepted for private rental with bad credit history, i dont work due to ill health and hubby was made redundant in May. Housing Benefit would deffo be a temporary option as hubby is job hunting.

Really dont know which way to turn!!!!! Any advice welcome....thanks x

I hope that is a start, I'll be back tomorrow.

DD

dawny75

Thanks for your reply.

Mortgage Rescue Case Worker said she isn't supposed to know about what we want to do with shortfall. She said that lenders are now wise to people taking shortfalls into BR and have started to include clauses which wont allow us to do this.

My gut feeling is we should hand back keys??? Any further advice very much welcome!! Thanks

debt_doctor

dawny75 wrote: »

Thanks for your reply.

Mortgage Rescue Case Worker said she isn't supposed to know about what we want to do with shortfall. She said that lenders are now wise to people taking shortfalls into BR and have started to include clauses which wont allow us to do this.The mortgage providers may think they are boxing clever, but I feel that this would always be an 'unfair term' in a contract, and if allowed to be held by the courts would make bankruptcy almost irrelevent; Imagine that all secured lenders would put the term in as standard - and why stop there? Let every credit card and personal loan have a non BR clause in their contracts? I think not.

My gut feeling is we should hand back keys??? Any further advice very much welcome!! Thanks Handing back the keys could be taken as you being 'intentionally homeless' and would risk the council not having any duties towards you and your family for re- housing.

It really comes down to how you feel about the home that you now live in, do you want MRS or not? As an alternative do you want to obtain council accomodation (do you fit the rules?) or are you interested in finding your own private rent.......

DD

antrobus

dawny75 wrote: »

...We've been to the local housing and been accepted provisionally for the Government Mortgage Rescue Scheme. Only drawbacks being it could fail at any time and is a lengthy process. Also they only purchase your house at 90% of market value which leaves us £18,000 in debt which we will have to sign liability for to complete and we cannot include it in future bankruptcy

It's called a Deed of Acknowledgement.

Whether or not it is enforceable is another matter altogether. Opinions differ, and since (as far as I'm aware) no one has taken one to court, there is as yet, no definitive answer. The problem you might have is that I believe that the lender might not agree to the deal unless you sign the DoA.

dawny75 wrote: »

..Other option is stop paying mortgage and secured loan which we already have, secure rental, hand keys back, not sign any liability forms, go bankrupt for any shortfall which would be less I think because first and second lender will want a good price for house to claw back their money.

It's more likely that a repo sale will be at a greater discount than 10% of the current 'market value' and so the shortfall would be bigger. If that wasn't the case, then there's be no reason for a lender to agree to MTR in the first place. [/QUOTE]

dawny75

Thanks very much for your replies...so much to think about. We are seeing a debt adviser next week so will hopefully have some more advice to go on. Don't know which way to turn

kian2012

I have appointment on 13th, with local council about mortgage rescue scheme. I already have court order regarding missed payments and am struggling again. I have a 7 month old son and don't want to be homeless. Can you let me know how you get on. Many thanks

IF

Hi dawny75, I've got my fingers crossed for you next week. Here's the link to Angie's thread, hope this may help too.

Govt Mortgage to Rent Scheme/Will it save my house? - Click here

Best wishes
If...x

Depth_Charge

Hi

dawny & kian

Along with what others have put, might help you by having a look through the CAB Mortgage Rescue Scheme guide below -

http://mymoney.nedcab.org.uk/moneyadvice/mortgagerescuescheme.asp

dawny75

Kian2012 I will deffo let you know how we get on. I've read through Angies thread...she suffered months of stress and worry..but with a positive outcome. We are thinking we will give MRS a try..as long as we can go BR for the shortfall. At least we will have a case worker helping us and would end up with a reduced rent through a social housing landlord although we keep changing our minds!! Its so hard. Will post an update when we have seen the debt adviser. Thanks for your replies x

win123

Hi everyone jsut been reading your stories and I hope you dont mind me joining in. I was wondering re the mrotgage resuce scheme too I have a joint mortgage with my mum who is disabled and have a son of 17 - just wondering how much income you can have coming in before they will consider you for the MRS - I am also around 23K debt - I am so worried that I will end up homeless with my disabled mum and son - Mortgage currently owing is 106,000 and monthly payments 730 which is crippling us nothing left for anything after the DMP payments and bills etc All the stress is making me ill as I am sure it is all of us and I suffer with anxiety and depression as it is

Thanks and would appreciate any advice and good luck to everyone who is applying for the MRS :o