Going to lose my house!! Repossession House Order Yikes!!

TEDNO1

I have a mortgaged house and a 100k loan secured on the house.
Both myself and my husband have full time jobs and we have about 100k equity in our house.

We use a debt management company to negotiate our credit card debits of 75k and reduced all our monthly payments which we pay direct to the credit card companies

All accept 1 company of which we have the 100k loan secured on our house.

We have paid off all the principal part of the loan, the remaining amount 50K is their profit. The company say they had no correspondence from our debt advisers (which they did) they also cant produce the original loan agreement etc etc.
Finally over 2 years late we received a repossession order on Christmas eve 2014 great!

We have attended the 1st court hearing where a new date was given as the bank didn’t have all the relevant paperwork.

Meanwhile we have offered a settlement of £33k which has been agreed and we have 28 days to pay. Our problem is how do we raise the cash so we do not lose our home, we still have two younger children who are dependent on us. We will probably sell in 2-3 years as we wont need a large house.

We also have bad credit ratings now.

Does anyone have any ideas?

somethingcorporate

It's not profit, it's interest on the loan.

So you made a settlement offer with no means of paying it?

I think you have no chance of finding that kind of money on a DMP with so much existing debt you are not managing.

Have you talked to your mortgage company about extending this? (although the secured loan will make this hard, if not impossible).

mcpitman

No constrictive ideas unfortunately.

It appears you have either lived beyond your means for far too long or you have had a very bad run of luck.

Don't understand why you would make an offer of settling when you can't actually settle. Can you explain this, was it a stalling tactic?

TEDNO1

yes we have paid the principal off its just the interest remaining. When we agreed to the settlement we thought we could borrow it from friends/family but everyone says they dont have the money

tomtontom

TEDNO1 wrote: »

yes we have paid the principal off its just the interest remaining. When we agreed to the settlement we thought we could borrow it from friends/family but everyone says they dont have the money

You can understand why they're saying that can't you - if you can't pay the bank, how will you repay them?

If you're planning to sell in a few years anyway, why not do it now?

somethingcorporate

I agree with Tomtontom, selling up, clearing your debts and starting again would be the cleanest and quickest way to get back on your feet.

Candyapple

TEDNO1 wrote: »

yes we have paid the principal off its just the interest remaining. When we agreed to the settlement we thought we could borrow it from friends/family but everyone says they dont have the money

You were thinking of borrowing £33k from friends and family but didn't think to ask before making the settlement offer? :eek:

I would talk to your mortgage company ASAP as with no other options for obtaining a loan to cover the amount, you run the risk of losing your home.

ViolaLass

TEDNO1 wrote: »

yes we have paid the principal off its just the interest remaining.

That isn't how loans work. You pay off interest and capital each month not all the capital first.

EdGasket

You answered the post yourself: " We will probably sell in 2-3 years as we wont need a large house." If you won't need it, sell it now and get something smaller.

TEDNO1

tomtontom wrote: »

You can understand why they're saying that can't you - if you can't pay the bank, how will you repay them?

If you're planning to sell in a few years anyway, why not do it now?

dependent kids, not in a position to buy another house, rental too high in our area, will be in a better position financially in 2 years time.

Gaz83

This is a world of mess.

Sounds very much like living beyond your means for what must have been some time is coming back to bite you.

Your best bet will probably be selling up, settling your debts, and attempting to start again.