Advise: Agreed Sale before a court order is placed

Mummy2211

Advise needed if possible - Sorry if it is the wrong board.

Basically after a awful awful year with lose of jobs for both myself and my partner - We have fallen behind on our mortage - Although i am not named on the deeds, as they house was brought between my partner and his bother.

We had a debt management lady come round on Saturday to go through our finances, we are short by £500 a month for our bills, So because of this she was unable to do a repayment plan to give to the mortgage company - So they will look at that and say we cant afford the house.

She advised us that they can apply for a court order, which could be set aside should we be able to get more money and do a repayment but advised us that will stay on the mortgage for the rest of the mortgage life which in our case is 16 years - We are only on interest only at the moment, so we couldn't even go onto repayment as we still couldn't afford the payments.

My question really is - How long do these things take? We have really come to the concultion to enter into an agreed sale of the property. (not confirmed to them yet) before we have a court order in place, becasue although i would hope we can get settle with jobs again, Whos to say something in life happens latter on and we miss a payment..If we can get in there and sell it before they do anything then we can walk away with money in the bank.

We have two children also, and its really worrying what will happen, Selling the house will make use homeless, we both have bad credit now due to getting behind on all our debts (these have been set up on a payment plan with each company and paying the min paymeny as in £6 for one of them) So we would not pass a credit check to go into private renting, and even then we couldnt afford to be paying £1k rent each month either.


We owe £900 + the interest they have added, So its £1200 we owe at the moment.

silvercar

Sounds like this 'court order' would be a repossession order. Then if you come up with the money by the court date, they would give you a suspended repossession order. This means that basically if you fall behind with repayments (including repaying arrears at the agreed rate) then the lender can go straight to court to repossess.

You should be aware that with a bad credit rating and mortgage arrears you could struggle to get a mortgage on a new cheaper property.

Also the repossession is going to effect the brother whose name is on the mortgage. You should involve him in discussions about your next move.