repossesion question?

lookingforadvice_2

hello

im after some advice

I have a mortgage with RBS and a secured loan with welcome finance.
With interest rate rises and i have also cut my work hours from 37 to 33 due to health problems, i am struggling to pay my mortgage

i disscused this with my mother who advised me it would be best to sell up and move in with her till things got better for me. I have my house on the market and have had loads of viewings and offer off people who still have to sell thier houses.

im having many a sleepless night due to worry, what happens if i miss more payments and they reposses my house? what will happen with my other creditors, also i have a car and i pay £150 a month for it on finance will this be taken off me too?

im so worried that i will loose everything

i know this is all my own fault and i feel really ashamed about it, i havent told anyone else apart from my mum

movingforward2010

hi there , im sure everything will turn out ok, you never know you might have an offer tomrrow chin up

im not sure about repossession, but i dont think they could take your car if it belongs to a finance company, do you need it for work??

lookingforadvice_2

i do need it for work, if they did take it i woudnt have any money to get another

silvercar

OK, first relax, you have come to a good place for advice and you have the support of your Mum.

I would suggest:

Speak to your lender, if your mortgage is currently repayment, switching to interest only would reduce payments. If you are already on interest only ask if you can take a payment holiday. Are you on the best mortgage deal available, could you get a better deal by switching?

Hopefully, your house is priced realistically and a buyer will come along soon. Check with the agent(s), houses priced realistically sell quicker than those that are overpriced.

Worst case - repossession. For this to start to happen you would need to be at least two months in arrears with your payments, probably much more. I hope you are paying as much as you can afford. Visit the "debt free wannabe" board for advice on making cutbacks and saving money in general. If you post a list of your monthly income and expenses on there, people will advise where you can save money - as well as send you many cyber hugs in support.

If the worst came to the worst and you were repossessed. the house would be sold at a realistic price to get a quick sale, so slightly under market value, but the lender has a duty to get the best price. The money raised would first pay off the mortgage lender (including repo charges and arrears), then any remaining goes to pay the secured charge. Any money after that comes to you.

ohmsoft

Firstly don't worry...

You say miss more payments, so I assume you have already missed some. At what stage are you at with the lenders? Have you spoken to them and kept them updated with your circumstances?

Repossesesion is a legnthy process and won't occur overnight - it is the lenders best interest to avoid it happening and they would rather you sell and repay. Just make sure they are kept in the loop.

Your car should be safe so long as maintain payments on any loan attached to it.

Your car

lookingforadvice_2

i havent missed any payments yet, just one on my CC as i was short, my mum is lending me some cash this month in the hope my house will sell soon:(

im only worried about my car because of the area i live its my only real mode of transport

MortgageMamma

I deal with reposession clients on a daily basis and if you can provide proof that you are marketing your property and trying to sell then normally a court will not grant an outright posession order. What usually happens is the court trys to mediate a payment between you and the lender to cover the arrears gradually and keep your account up to date, when they have done this they will grant a suspended reposession order of anything up to 12 months - if you default on the payment arrangement agreed the lender will go back to court and get an eviction date - you are then given 30 days notice to vacate the property. Even at this stage the reposession can be stopped via a variety of methods.

Its good you are addressing this before it becomes a real problem, most clients by the time they are directed to me are literally weeks away from reposession.

Best of luck selling the property, I hope you recover from your illness and financial difficulty soon.