repossession, but why? not being reasonable

little_miss_spender

Hi to everyone who tried to help me with my problem of pending repossession.
But everything is okay I still have a home. The judge was really nice and said I could pay what I originally offered off the arrears which is £40.00 per month. He also said that anybody would sympathise with us and if he could he would change the terms of the agreement but he did not have the power to do that. He said the company were not in the business of dealing with humans just extracting money from people and in this case the vulnarable, he was so sweet. The judge gave the mortgage company a 12 day suspended possession order but if i am late or miss a payment they can repossess within 12 days.

But they did manage to whack a load of costs etc on top of the arrears by another £2,400.

What I do not get is why they couldnt just accept my offer in the first place and save all the anxiety and worry we had to endure, and also to save us incurring all the extra costs on top of the arrears.

To me it just stinks so I am off now to report them to the FSO.

I am also starting a campaign to make all companies have a standard credit agreement which has rules which they all must abide by, and so these so called sub-prime lenders cant just do what ever they want to their customers:hello: .:p :smileyhea :j Thankyou again to all of you on this board for all your kind words and advice, it made me keep my chin up and be more determined to keep my home thanks a million xxxxxxxxxxxxxxxxxxxx little miss spender:kisses:

Mary_Hartnell

While your thread has been running, statistics have emerged demonstrating that these sub prime invaders have been causing stress and damage out of all proportion to their money at risk.
You may find your MP would be interested in your experience and be part of a group pressing for changes in the rules to force a reasonable attitude from such lenders..
Bad luck on getting stuck with the costs - I hope you will manage to keep up with the payments.
Have you done a MSE budget?

dunstonh

ut they did manage to whack a load of costs etc on top of the arrears by another £2,400.

So, the judge was sympathetic of your situation and critical of the lender but still allowed them to do that? You would think that if that was the view of the judge he wouldnt allow that much to be added.

To me it just stinks so I am off now to report them to the FSO.

If you do this it will not gain you anything. The FOS will just pass your letter back to the lender and take no action themselves and leave it for the lender to review your complaint. You have to go to the lender first to give them the opportunity to deal with your complaint. Only once you are deadlocked or the lender reject your complaint can you then go to the FOS.

utterbar

So, the judge was sympathetic of your situation and critical of the lender but still allowed them to do that? You would think that if that was the view of the judge he wouldnt allow that much to be added.

If the £2400 was the legal cost of the possession action the mortgage company is entitled to reclaim that from the borrower (it's a standard clause in the mortgage deed) and they do not need a court order to do so. Further there is a presumption that the costs are reasonable and reasonably incurred although a borrower can challenge them if they've substantial grounds to do so.

little_miss_spender

Hi Guys I thought I would just add something i noticed whilst on the court website. I took a look at the weeks cases in court for repossesssion and found that there was 3 particular lenders whos name came up far more frequently than any of the others. one of which was ge money the others i cant remember but I think that proves something dont you?????

silvercar

it suggests that these three lenders do more sub-prime work than others. sub-prime risks and rates are higher.

UK007BullDog

Correct, when working for a high street lender any sub-prime cases (people with bad debt record) we would not lend on got referred to GE Money. The risk of subprime defaulting compared to prime is much higher.

Were the other lenders Platform, Rooftop, SPML, Moneypartners by any chance if you can remember?

little_miss_spender

Yes I obviously agree with you that sub - prime mortgages the risks are higher but I dont agree that sub prime mortgages are all for people with bad debt they could be self employed so need a self cert mortgage and have nothing to do with being in debt in the past.
I am checking the other lenders will get back on that one.
I was trying to point out that it could be that sub prime mortgage lenders are more likely to take you to court after a months arrears than a normal high street lender would wait at least 3 months before taking you to court. That is what I meant by there being so many entries for GE Money not the fact that all of them were bad debtors in the past.

little_miss_spender

Hi Mary
could you tell me where i can see these statistics or any information regarding the sub prime lenders Thank you little miss spender

Mary_Hartnell

I am no expert in finance, but a quick "advanced google" of subprime or sub prime lenders, and limited to the United Kingdom, gave me the links below.

I think the point is that securitisation means sub-prime lenders are just piggy in the middle, having sold the profit on the mortgage to someone else. They have few staff and no choice but to get tough and nasty if that profit looks like not living up to hyped expectations.

The interesting thing about some of these links is that they are over a year old, obviously some people could see the problem coming but it was only Northern Wreck that brought it home to the rest of us.
This is a quote from 01feb2007:
“With subprime mortgages, you’re dancing on the edge of a razor blade – they’re awful investments,” said John Devaney, CEO of United Capital Markets, a specialist in distressed asset-backed securities. Others warned US commercial banks could be exposed.

http://www.londonstockexchange.com/en-gb/pricesnews/investnews/Article.htm?ArticleID=18469723

http://forum.globalhousepricecrash.com/index.php?showtopic=17305

http://www.bizhelp24.com/personal-finance/sub-prime-credit-3.html

http://news.zopa.com/category/mortgage-lending/

http://uk.reuters.com/article/personalFinanceNews/idUKNOA22646620071212

http://www.datamonitor.com/Products/Free/Report/DMFS2066/020DMFS2066.htm

http://www.newstatesman.com/200709200024

http://www.ft.com/cms/s/0/2e254842-b224-11db-a79f-0000779e2340.html

and if you missed the budget here are a few thoughts
http://www.bbc.co.uk/blogs/thereporters/robertpeston/