repossession

meicimac

Hi there,
I have 16 months left on my mortgage which is about 11k. I'm having difficulties paying as I retired due to ill health. A few years ago I increased the payments through my own choice but am now struggling to pay these. Santander are threatening me with repo. The property is worth about 170k and I owe them about 11k. can they repo me?
cheers
Meic

Marktheshark

Yes and they will and they will sell at closed auction to one of their mates.
You need to act very quickly indeed, a fire sale at last option, it will leave you with considerably more than the bank will, considerably.

If you can not pay, you need to be looking to sell quickly at a grab it now OMG look at this love price to sellers with cleared funds only and buy a smaller house and be debt free.

The next letter will be the notice of seizure.

dancingfairy

Marktheshark, I don't think your reply is very helpful to someone worried about losing their home to be honest.
To the OP, yes I believe they can repossess your house although this should be a last resort and they have to treat you fairly.
Have you tried writing to them with your budget and a repayment plan? It might be worth calling shelter or national debtline as they may be able to help.
Selling the property yourself may be an option but you should seek advice and see what the alternatives are before taking this action in my opinion.
Df

maninthestreet

This is a repayment mortgage?

dimbo61

Lenders have to be seen to be acting fairly to customers.
How old are you ?
Could you extend the term by 5 years ?

Mossfarr

Is there no family members who could help? If you have children I'm sure they would help you (if they can) rather than see you lose your home (and their future inheritence)!

Alternatively, Not 100% sure it how it works but could equity release be an option?
On the figures you have quoted you have £159K of equity, its got to be worth looking into.

LittleMax

You say you increased the payments - have you spoken to them about reducing the payments and extending the term?

I'm not clear if you have discussed your situation with the lender or whether you have just been receiving letters. If you have not spoken to anyone, then call them to see what options there are.

If you have already been discussing it with them and they won't budge then I would suggest trying to get someone experienced with situations like this to help. Try Shelter.

phill99

Something tells me that there is more to this story.


Lenders will repossess only as a last resort and typically where the home owner wilfully doesn't pay or ignores all correspondence. You need to try and pay something each month. even if it is only £50. This shows that you are trying.


OP, What is the back story to this?

dc197

Good advice (mainly) above.
Paying a token amount each month is essential.
Reminding them that you have previously overpaid might help.

Do you have any desire to get a part-time job that will earn you 11K over then next 16 months? I know it's not ideal since you have retired and have had poor health, but swallowing your pride for the sake of keeping your home is worthwhile.

dc197

To elaborate more on hour much work you would need to do, should you decide to get a part-time job.
Let's call the 11K more-or-less the threshold for income tax. Let's say you can earn this without paying tax, ignoring any other income you have.

£11K over 16 months is £690/month. At £7.20/h you only need to work 96 hours a month.
That's 4.5 hours (one morning) a day 5 days a week.
Or three 8-hour days a week.

LittleMax

dc197 wrote: »

To elaborate more on hour much work you would need to do, should you decide to get a part-time job.
Let's call the 11K more-or-less the threshold for income tax. Let's say you can earn this without paying tax, ignoring any other income you have.

£11K over 16 months is £690/month. At £7.20/h you only need to work 96 hours a month.
That's 4.5 hours (one morning) a day 5 days a week.
Or three 8-hour days a week.

You seem to forget that this would impact on any other income OP is currently receiving in benefits. You can't simply ignore any other income, it's not like overtime.

Edit to add - useful post though because it raises the question as to whether OP is sure they are claiming all benefits they may be entitled to. Don't assume you are not entitled without checking a benefit calculator