Why Repossess when negative equity

[Deleted User]

Sorry I can't offer any advice/suggestions/solutions, but as another poster has suggested, you really need some professional advice - contact Shelter

http://www.shelter.org.uk/

JimmyTheWig

I agree with ILW. I think the only real reason for them to repossess is to punish you. If word gets out that you don't have to pay them if you are in negative equity then many more in negative equity would stop paying.

But I also think that there are financial reasons for them to do it If you agree to pay £480 a month now, how reliable have you been with them in the past about sticking to what you have agreed/ Would you believe you?
Yes, they will get their £10k back in 20-odd months at this rate, but if you stop paying after, say, 6 months then they wuold have been better off reposessing.
And if they think prices are falling then they might want to repossess now rather than wait 6 months and see their £10k disappear to nothing.

DS4215

Your mortgage is a priority debt - only after C Tax and other Tax debts and you should be paying that *before* any other debt. Without posting a full SOA and more information people will not be able to help you, but if you are not willing to do that then contact StepChange (CCCS) or National Debtline for advice on debts or Shelter for information on finding somewhere to live.

embarrassed_about_my_debt

wthtodo wrote: »

Having to look after my partners mother as theres no where else for her to go which means extra costs, time required to make sure shes ok as she has a number of illnesses and disabilities.

Can you claim carer's allowance?

Niv

Sounds to me that you !!!!!! off your second mortgage providor by re-claiming PPI and they are now taking their revenge. Maybe First Plus dont work like that but on the face of it thats what it looks like to me (not a criticism of the OP and claiming back PPI btw).

Niv

quantumleap

Listen, its going to be really easy for people to post comments and thoughts without knowing the full situation as you haven't (nor do you have to) provided it.

However, the reality is you are in significant arrears on your mortgage and the company has issued a repossession notice. In all fairness you can hardly blame them for that judging by the amounts involved and the length of time without payment. It isn't nice and I hope you can find a way to resolve things with them.

I would suggest that you post a SOA so that you can take advantage of the people on this forum who can provide you with really good advice about how you can reduce your outgoings.

You never know, you might save enough to allow you to make a more agreeable offer to your mortgage provider.

Anondebtadvisor

2nd charge holders are more likely to take action than the 1st mortgagee these days and really will not care about the shortfall as they will persue you for the shortfall.

Maybe you should consider stop paying the mortgage and saving the money towards rent and a deposit?

wthtodo

DS4215 wrote: »

Your mortgage is a priority debt - only after C Tax and other Tax debts and you should be paying that *before* any other debt. Without posting a full SOA and more information people will not be able to help you, but if you are not willing to do that then contact StepChange (CCCS) or National Debtline for advice on debts or Shelter for information on finding somewhere to live.

Hi there

we are already working with the CCCS, we have a budget in place that fits their guidelines, and all our other non secured debts are token payments, except gas and electric, who have reduced to the lowest possible payment.

wthtodo

embarrassed_about_my_debt wrote: »

Can you claim carer's allowance?

Only if you work 16 hours or less and its so paltry its financially better to work .

wthtodo

ILW wrote: »

Moral Hazzard.
Let one person off and loads of others will stop paying.

I could understand that if we werent paying anything and hadnt shown them how we can meet the monthly payment in 6 months time and if there was loads of equity in the property.