Help with repossesion letter please

whatnowhey

Hi
Any advice welcome please!

Last year me and my husband got made redundant within a month of each other. He found a job in Feb but the pay is ridiculously low which has meant we have got in mortgage arrears.

Our house is worth 180k and we owe 45K and the mortgage arrears are now £3500
We have never been in arrears in the 13 yrs since we had the mortgage and I cant believe we will now lose the house over such a small amount when we have equity.

We are in court on Monday and I dont know how to prepare. I havent filled the forms in yet!

I have advertised for a lodger but no response as yet

I have a job offer to start 2nd Jan and my husband is in the process of receiving a fab job offer but probably wont get written confirmation until mid Jan.

I have been offered a cash offer of 150k by a house buying website

Any ideas please????

THANKS

whatnowhey

Can anyone help please?

ILW

Have you spoken to you mortgage provider?

whatnowhey

I did in the beginning to ask for a payment holiday or to go interest only and they wouldnt help

Goldiegirl

What you need to do is to attend the Court on Monday and tell the Court Offical that is dealing with the matter exactly what you have said in your posting.

Also make a proposal for future monthly payments that you are sure that you can afford. It looks as if your circumstances will improve in January when you start your new job, so work out a new monthly budget which shows what you can afford to pay each month towards clearing the arrears, and take that budget with you to show the Court Official.

If, for example, you can afford to pay the mortgage payment plus £20 towards the arrears, a Court Order would be made on the basis of 'Possession suspended upon payments of the MP plus £20.

That means, all the time you pay the payment stipulated by the Order, the lender can't apply for a Possession Warrant. If you don't make the stipulated payment, the lender can then apply to Court for execute the Order and obtain a possession date. So it's really important to stick to the payment arrangement.

The Court Officials aren't monsters, and they are willing and happy to listen to reasonable proposals and make the Court Order on that basis. It's in nobody's interests to take possession of properties, so they listen to the borrowers.

Good luck

whatnowhey

Thanks a lot.

It will be hard to make a budget though as my husband wont know the salary until mid Jan although it should be a lot more than he is earning now!

Do i need to fill out the forms?

Worse case if they repossesed when would we have to leave dont fancy being homeless over xmas

Dave_Ham

Please try not to worry, no court is going to reposses here, unless you do not turn up.

You will definitely not be homeless or repossed for Christmas even in an unxpected worst case scenario.

Do not even mention your Husband's potentially new job, just go on the basis that you start work in the New Year and you will have higher income.

When you get to the court there will be someone acting for the bank. Agree with them the additional payment + the mortgage payment and when you go into the court you are unlikely to even have to say anything.

They will say you have agreed and you understand what will happen if you do not stick to it.

Complete the forms but do not try and over complicate them. You are getting job, you will now pay Mortgage Payment + £x on top to clear the arrears.

Good luck

Goldiegirl

I'd suggest it's the best thing to complete the forms as far as you are able.

Again, when you attend, tell them exactly what you have posted here - the official may postpone the matter until the new year, and give you a new hearing date in January, when you have a better idea of your finances.

I can reassure you on one point, there is no way your house could be repossessed before Christmas.

I worked for a large lender for many years, and at various times dealt with mortgage arrears.

Even in worst case scenarios, like if the borrower did not attend their hearing, we'd get a Possession Order suspended for 28 days. This meant we could apply for a possession date after 28 days. The possession date would typically be 2 or 3 weeks after we applied for it.

Also, we would never have enforced a possession order so near Christmas, as it would have caused so much bad publicity.

I know you'll be worried and anxious, but you do have time to sort this, just be completely open and honest at the Court.

katejo

whatnowhey wrote: »

Hi
Any advice welcome please!

Last year me and my husband got made redundant within a month of each other. He found a job in Feb but the pay is ridiculously low which has meant we have got in mortgage arrears.

Our house is worth 180k and we owe 45K and the mortgage arrears are now £3500
We have never been in arrears in the 13 yrs since we had the mortgage and I cant believe we will now lose the house over such a small amount when we have equity.

We are in court on Monday and I dont know how to prepare. I havent filled the forms in yet!

I have advertised for a lodger but no response as yet

I have a job offer to start 2nd Jan and my husband is in the process of receiving a fab job offer but probably wont get written confirmation until mid Jan.

I have been offered a cash offer of 150k by a house buying website

Any ideas please????

THANKS

Where have you been advertising for a lodger? Have you tried a web site such as Spare room ?

whatnowhey

Thanks a lot guys

I gave advertised on 5 night for a lodger.

I am worried if I complete the forms we would look hopelessly broke!

I have asked for a letter confirming my job offer so I will take that as well.

Does anyone know the minimum extra we can commit to per month as I dont want to over promise. Also when will we have to start paying as I wont get 1st pay until the end of Jan.

Are there any circumstances where you can get the hearing postponed please?

Thank you for all being kind enough to help!

Dave_Ham

Added up the additional monthly amounts will have to clear the arrears at the very least before the mortgage is completed.

Many litigation teams at the lenders will want this completed before then, so typically asap but if the monthly extra clears it in 2-3 years this should suffice.

Be mindful that unfortunately the cost of the whole process will be added to your mortgage too.

Definitely take along your job offer letter, probably the most significant bit of information as it changes the parameters.

All the best