NRAM arrears and selling my house.

robjoe2010

Hi


I got into arrears with NRAM after becoming unable to work. They agreed to 12 months interest only which is due to end next month but nothing has changed. They will be wanting me to convert back to full payment plus arrears payments and I know I can't manage this. I have made the decision to sell my house and have already put it on the market but what will happen when I admit I can't pay what they want until it's sold ?

longtermplanner

Assuming you have got it on the market at a reasonable price, then not a lot will happen, because you will have sold it before they have any chance of going to court to get a possession order.

Do you have other debts? Are you making the usual repayments to these?

Is there enquity in your house or will there be a shortfall when you sell?

phoenixx

I agree with LTP. It will take them a while to get a possession order and by then you should have sold. My dealings with NRAM have been far from pleasant (3 complaints to ombudsman - 2 upheld). We paid off our arrears in the end but while the ombudsman was dealing with complaints, all action against us was frozen.
I hope you get it sorted out.

fatbelly

Ask them if they have an Assisted Voluntary Sale scheme.

If they do run a scheme, you give them permission to talk to your estate agent and they agree to hold action. You pay what you can. They may contribute to legal fees.

It looks like they do:

http://www.n-ram.co.uk/homeowners/help-with-payment-difficulties/how-we-can-help

It may be best to say you are thinking about selling - I had one client refused a scheme because he had already put the house with an estate agent.

robjoe2010

Thanks guys, much appreciated.


I have the house up for sale for around £10000 under market valuation which was advised as it does need some cosmetic improvement. Things are a bit quiet at the moment because of school hols but should hopefully pick up. I don't have other debts, just the mortgage arrears but I always pay the interest bang on time. They do have an assisted voluntary scheme but they charge 8% to sell, my agent is charging under 1%, I have around 10k equity which would mean if they leave me to sell I'll be able to give them all their money back.

longtermplanner

8% *!£!*!

National_Debtline

Please do remind Northern Rock that they should allow you to remain in the property so that you can 'effect a sale'. If it was to go to court (and I really hope it doesn't go as far as that) a judge could allow you 'reasonable' time to sell the property.

We've a couple of fact sheets that you may find useful:

1. Mortgage arrears guide: https://www.nationaldebtline.org/EW/factsheets/Pages/G2%20EW%20Mortgage%20arrears%20guide/Default.aspx

2. Mortgages - Help with payments:
https://www.nationaldebtline.org/EW/factsheets/Pages/38%20EW%20Mortgages%20-%20help%20with%20payments/Default.aspx

Really hope you find these useful.

Very best wishes,

David @ National Debtline.

robjoe2010

Thanks David


I bit the bullet today and rang them. I ended up being put with the "sensitive issue team" They asked me to go to my gp and get them a letter to send to them saying I had been ill and when they think I might be fit for work, to agree an interest only extension. I also asked whether selling my house would buy me extra time and they said I wouldn't be able to remain on that if I were selling but could negotiate lower payments.

National_Debtline

That's really promising. I hope that you can find a resolution that you're happy with. You're always welcome to get in touch if you have any further queries. I'll, of course, keep an eye on this thread too!

- David.

robjoe2010

Thanks David, hope it will help others..


I'm wondering what would happen if I did put the house up for sale whilst still paying interest only ? I mean, if I got a sale and it went through, what would NRAM do after telling me I couldn't do this ?

fatbelly

robjoe2010 wrote: »

Thanks David, hope it will help others..


I'm wondering what would happen if I did put the house up for sale whilst still paying interest only ? I mean, if I got a sale and it went through, what would NRAM do after telling me I couldn't do this ?

What exactly did NRAM tell you you couldn't do?

You said you have 10k equity. As long as the sale covers the balance on their mortgage why should they object?

I thought you had already put it on the market.