Repossesion - Firstplus

Amanda1880

Hi

Firstplus declined my shortfall application unsecure their charge from my property that was intended to be sold through the Mortgage Rescue Scheme.

I am now going to take my case to the Financial Ombudsman as I feel quite strongly that I have case to argue, under no circumstance will Firstplus stand to get anything whatever happens withe the property and yet are blocking me doing something about it.

Just a question as im now refusing to make payments towards the loan, as it has been made quite clear its unaffordable therefore I am making sure my first charge is happy however, I am aware taht both charges can make a repossession claim does anyone know what the likely outcome of this will be given my first charge is relatively happy and if the property goes to repossession the first charge stand to lose and Firstplus as explained above will gain nothing total wasted exercise in my opinion.

Does anyone know whether these companies hae some sort of insurance whereas if I got repossessed they could make a claim, as there is a reason why they are blocking me as whatever happens they are going to lose everything.

Any help would be great.

Depth_Charge

Amanda1880 wrote: »

Hi

Firstplus declined my shortfall application unsecure their charge from my property that was intended to be sold through the Mortgage Rescue Scheme.

I am now going to take my case to the Financial Ombudsman as I feel quite strongly that I have case to argue, under no circumstance will Firstplus stand to get anything whatever happens withe the property and yet are blocking me doing something about it.

Just a question as im now refusing to make payments towards the loan, as it has been made quite clear its unaffordable therefore I am making sure my first charge is happy however, I am aware taht both charges can make a repossession claim does anyone know what the likely outcome of this will be given my first charge is relatively happy and if the property goes to repossession the first charge stand to lose and Firstplus as explained above will gain nothing total wasted exercise in my opinion.

Does anyone know whether these companies hae some sort of insurance whereas if I got repossessed they could make a claim, as there is a reason why they are blocking me as whatever happens they are going to lose everything.

Any help would be great.

Hi

Could you put up further info on the overall position?

Were you actually accepted as eligible for the Mortgage Rescue Scheme and the application fell through as a result of Firstplus refusing to engage in the scheme due to the expected shortfall?

Firstplus can take the same possession action as the first lender but would be second in the pecking order of any proceeds so to speak.

Going on the valuation would the first lender get fully paid and if so how much would the shortfall be regarding Firstplus?

Lender co-operation and the Mortgage Rescue Scheme can be inconsistant to say te least and as you say the mathamatics can make no sense at all especially as the market going price is offered under the MRS where as repossession auctions can raise a fair bit less, think the ball park figure can be around 20% down.

The second lender can take a big hit in the above circumstances, bigger than if they go with the MRS, but hey we are talking about sub primers maybe and perhaps talking to a script reader.

Who has been advising you with the Mortgage Rescue Scheme and have they put any pressure on Firstplus in anyway?

Best Wishes

Thrugelmir

Amanda1880 wrote: »

Firstplus declined my shortfall application unsecure their charge from my property that was intended to be sold through the Mortgage Rescue Scheme.

I am now going to take my case to the Financial Ombudsman as I feel quite strongly that I have case to argue, under no circumstance will Firstplus stand to get anything whatever happens withe the property and yet are blocking me doing something about it.

In your previous posts you said that the joint liability with First Plus was in arrears. Is this still the case?

antrobus

Amanda1880 wrote: »

.. as there is a reason why they are blocking me as whatever happens they are going to lose everything.

As far as I'm aware, if there is a shortfall as a result of either a repo or even a sale under the MRS, you still owe the money. Firstplus would only "lose everything" if you failed to repay the debt over the following twelve years that they have to chase you for it.

Amanda1880

Hi

Thanks for your replies.

Situation as it stands yes i am eligible joint liabilitys with ex hubby.


Shelter has been advising me all the way they did a full i&e with me which showed minus and also my ex had one done also showing minuses hence reason for the MRS, sent our forms to Santander and they agreed without hesitation agreeing to a 27k shortfall.

We then completed shortfall form for Firstplus, who declined after removing the loan payment from both i&es and disagreeing with valuations.

Shelter have applied pressure but they havent given in as they will have a 50k shortfall which I intended to enter into a running IVA, if they dont allow my MRS to go through my next move is voluntary repo however not before taking my case to the ombudsman as whatever i do there will always been a shortfall and dont even think when they gave us the loan there would of been then, you could argue irresponsible lending however, irresponsible borrowing also.

Apart from selling house on market where santander would probably see their loan repAid in full there is no other way FP are going to get anything apart from unsecuring it and putting it my IVA.

Dont understand the theory and do wonder if they have insurances to cover repossesions as they stand to gain nothing otherwise.

Thanks again

Thrugelmir

If your financial position is as bad as you say it is. Then FP might as well crystallise it's losses. Continued administration of your account will cost the bank thousands of pounds. Which it has no chance of recovering either.

Why don't both of you bankrupt and wipe your respective slates clean?

FOS will have no input into your case, as it's a commercial decision on the part of FP.

Depth_Charge

Amanda1880 wrote: »

Hi

Thanks for your replies.

Situation as it stands yes i am eligible joint liabilitys with ex hubby.


Shelter has been advising me all the way they did a full i&e with me which showed minus and also my ex had one done also showing minuses hence reason for the MRS, sent our forms to Santander and they agreed without hesitation agreeing to a 27k shortfall.

We then completed shortfall form for Firstplus, who declined after removing the loan payment from both i&es and disagreeing with valuations.

Shelter have applied pressure but they havent given in as they will have a 50k shortfall which I intended to enter into a running IVA, if they dont allow my MRS to go through my next move is voluntary repo however not before taking my case to the ombudsman as whatever i do there will always been a shortfall and dont even think when they gave us the loan there would of been then, you could argue irresponsible lending however, irresponsible borrowing also.

Apart from selling house on market where santander would probably see their loan repAid in full there is no other way FP are going to get anything apart from unsecuring it and putting it my IVA.

Dont understand the theory and do wonder if they have insurances to cover repossesions as they stand to gain nothing otherwise.

Thanks again

Hi

Thanks for the reply

Sounds a touch complicated as far as Mortgage Rescue is concerned.

Are you saying that you are currently in a live IVA?

As you will know from what you have put your circumstances (disposable income wise) will be / could be much different paying the average area rent as deemed by the mortgage rescue scheme to what it was paying a mortgage and secured loan.

If the house is eventually repossessed then your disposable income again could be a whole lot different renting elsewhere as to when you were paying your mortgage & Firstplus secured loan.

The above will come into play if you are in an IVA or decide on another solution such as bankruptcy.

I take it from what you have put that you are living in the jointly owned home and that your ex is the absent partner so to speak as far as the mortgage rescue scheme is concerned.

If Firstplus are taking this stance then it makes no sense on the figures but the mortgage rescue scheme can be a strange beast at times.

Im not sure the F/O has much if any duristriction over the Mortgage Rescue Scheme and neither has anyone else it would seem from my experience but best to have a go and your decisions at the end of the day.

The IVA bit has me scratching my head a little to be honest as this might suggest that you have being paying into an IVA in front of your secured lenders and that would have shown up on your I/E when Shelter looked at your application etc.

Just my views going on what you have put too date and difficult to say much more without knowing the full details and of course Firstplus's stance.

Best Wishes and hope it turns out OK

Amanda1880

Hi

Thanks for your reply.

I do fully understand your reasons to go bankrupt but obviously that was what i was trying to avoid as thats why the government introduced MRS to help families like myself keep their homes and less of a government problem.

FP are just being awkward and given they manipulated my figures then said the loan was affordable is a joke, they stand to gain nothing in all this so am going to sot it out because whatever happens as it stands i stand to lose my home, so am going to stop paying them and take it to ombudman who apparently supports MRS, probably get me nowhere but i can but try.

Thanks again

silvercar

If they repossess, they may well get nothing from you, assuming your IVA indicates you are cash strapped. If they chase your ex, is it possible they could get some repayment from him? Does he own a property that they could agree some charge over?

Amanda1880

Thanks for your reply both myself and ex hubby are part of the current IVA arrangments he is currently in rented accomodation so FP cannot put any charges on his home.

I just cannot understand why common sense isnt prevailing here and im having to not pay the loan to prove that we genuinely cannot afford both liabilities which in turn is going to worry me sick and probably be given a dogs life in phone calls etc.

I know someone was saying the ombudsman will not get involved in such cases but what they are doing is flying in the face of a perfectly acceptable government backed scheme, i know they stand to lose alot of money but the situation im in is not going to change.

Depth_Charge

Amanda1880 wrote: »

Thanks for your reply both myself and ex hubby are part of the current IVA arrangments he is currently in rented accomodation so FP cannot put any charges on his home.

I just cannot understand why common sense isnt prevailing here and im having to not pay the loan to prove that we genuinely cannot afford both liabilities which in turn is going to worry me sick and probably be given a dogs life in phone calls etc.

I know someone was saying the ombudsman will not get involved in such cases but what they are doing is flying in the face of a perfectly acceptable government backed scheme, i know they stand to lose alot of money but the situation im in is not going to change.

Hi

Sounds like you are in an interlocking IVA with an absent partner and looking at the Mortgage Rescue Scheme.

I cannot comment any further without knowing the full details other than asking what advice is your Insolvency Practioner giving?

Genuine best wishes