House Repossession

pretorangejuice

A bit of advise for a friend is needed.

He was unable to keep up with payments with his mortgage. He gathered a bit of money and paid a chunk of this mortgage. Bank offered 6 months to sort things out and pay a nominal fee monthly.

All payments have been made on time but now the bank wrote back given him 14 days to pay the outstanding balance or face repossession. He has a number of options, but what do banks usually do after this. Are they still lenient? He is offering to put the buy to let house on the market (don't ask why this wasn't done before), sales proceeds will be used to pay off the mortgage on the house he is living in. Do you think banks will give him more time or is the game over?

Letter was received yesterday and he will speak to bank tomorrow.

ShALLaX

It's always better to try to sell the house yourself as the bank will try and go for a fast sale just to recoup losses. Don't just hand the keys back unless you absolutely have to (court order).

I question whether the payment schedule has been adhered to. I find it strange that the bank has offered a repayment plan then, apparently, suddenly reneged on it? If your friend is still in arrears and the six month deadline is approaching (or has expired), the bank is within their right to start repossession proceedings as their confidence in your friend's ability to repay the mortgage has been lost. I wouldn't expect the bank to be lenient or relent. It's definitely worth calling them and begging, though.

Jimbo1976

Which bank was this? it sounds pretty harsh. Most banks are trying very very hard not to repossess at the moment. The FSA fined a lot of specialist banks a few years ago over arrears and repossessions and that scared them to death.

Encourage your friend to have a look at some of the repossession posts on here as i think its unlikely that the bank would be successful in any repossession hearing.