Verge of Repossession

elsien

Can your parents afford to lose the money?
If not, then don't lend it. Because there is a very high chance that they will never see it again. Particularly if there is some sort of gambling or other addiction going on.

enthusiasticsaver

annabanana82 wrote: »

Going by the last time in June, if he hadn't paid by 2pm then it was going to court in the afternoon and he'd be locked out from that day - I've no idea if this is factual or not but the story we got. I am assuming this is the same again. I have no idea how repossession works to begin to understand if the above is even viable.

That is not how repossession works. He is stringing you along.

enthusiasticsaver

fatbelly wrote: »

What can happen is that the judge, at a possession hearing, grants a suspended possession order. This is pretty much the default setting, to give the borrower a 'last chance'. The judge orders the borrower to pay the contractual monthly instalment plus £x, where x is a payment to clear the arrears, over a period up to the remaining term of the loan.

The borrower then fails to do this and the lender applies for a warrant (to evict by the court bailiff). This can itself be suspended (even on the same terms as the earlier order). We are really drinking at the last Chance Saloon here and the timescales are short.

I have been involved where the eviction by bailiff is planned for 12 noon on a particular day, and the hearing to consider suspending the warrant is held at 9.30. The bailiff waits outside the courtroom to hear if the application is successful. If it isn't the borrower and the bailiff have to agree to meet at the property two hours later!

I suspect that's what happened in June. So I think it's clear here that for whatever reason he can't afford the mortgage and he now needs to let the process take its course.

Those advising sale of the property are making a sensible suggestion as a rough guide says that a repossessed property sells for 15% lower, and there are more costs. You also have a large gap before getting any equity released to you. But unless the property does have a buyer, it's too late now to use that argument

Does this happen even if the borrower isn't there to represent themselves? Things were a lot different in the 90s when I was involved in repossessions.

There is an old saying which holds true that you can only help people who help themselves. The OPs brother is being evasive so I suspect there is more to this.

Sea_Shell

annabanana82 wrote: »

That is a concern, I have no doubt he is in a financial mess and his mortgage is in arrears but we are far from knowing the whole truth on this.

Are your parents a "soft touch" when it comes to your brother and money? Does he just see them as an ATM whenever he gets into financial bother? Are they going to change now?

Are they able to afford to keep bailing him out? or will it put THEM in financial hardship?

At 50, it's unlikely your brother is going to change, so if anything IS going to change it's got to come from your parents.

If it were me, and my parents continued to "bail out", then i'd be saying "I love you, you are my parents, but I can't be involved in your financials", and then leave them all to it. Just be very clear that YOU will not be carrying on where Mum & Dad left off, when (if) the money runs out. (i'm actually envisioning this scenario in my own family, down the track, so I know where you're coming from)

strawb_shortcake

Sea_Shell wrote: »

Are your parents a "soft touch" when it comes to your brother and money? Does he just see them as an ATM whenever he gets into financial bother? Are they going to change now?
My Mum is softer, my Dad would quite happily not give him another penny, he has managed to repay £2k of the £7k he borrowed earlier this year and continues to repay at the agreed rates. Obviously this will now increase his debts if she chooses to give him the money.


Are they able to afford to keep bailing him out? or will it put THEM in financial hardship?
It won't put them in financial hardship but I'd far rather they treated themselves to a holiday they've been considering
At 50, it's unlikely your brother is going to change, so if anything IS going to change it's got to come from your parents.
I know, he won't change how he manages his money, my Mum has told him (again) this is the last time but also that she doesn't want to know about him getting in trouble again, whether that holds I don't know.
If it were me, and my parents continued to "bail out", then i'd be saying "I love you, you are my parents, but I can't be involved in your financials", and then leave them all to it. Just be very clear that YOU will not be carrying on where Mum & Dad left off, when (if) the money runs out. (i'm actually envisioning this scenario in my own family, down the track, so I know where you're coming from)

In reality I am the only one that could afford to help financially but it's for this very reason I've NOT shared our recent windfall with the family.
In some ways my Mum does see giving him the £4000 as the easier option than having him come home - I'm more at the point where I could strangle him for being such a selfish idiot!!

Andyjflet

onwards&upwards wrote: »

I hate to say it, but i’d be worried your brother is inventing these ‘urgent’ situations to con your parents out of cash.

Really, where did this come from ?

EssexHebridean

Andyjflet wrote: »

Really, where did this come from ?

Regardless of where it came from...

annabanana82 wrote: »

That is a concern, I have no doubt he is in a financial mess and his mortgage is in arrears but we are far from knowing the whole truth on this.

...the OP is realistic enough to see that it could have some truth to it, sad though that is.


A seriously tough situation Annabanana - I do feel for you as it's never going to be easy having to ask yourself questions like that about a family member, particularly not a close one.
Can you convince your Mum that having your Brother move home doesn't need to be something that even gets considered, not at his age, and with the problems seemingly of his own making. If they did take that path then that again would be bailing him out and absolving him of having to take any responsibility, so again, might not actually help him in the long term.

strawb_shortcake

Well she paid the arrears, his mortgage company were on speakerphone so she could hear the whole conversation. He has agreed to have his wages paid into her bank account and she can allocate money for bills and to pay his debts to her, whatever is left can be split into savings and spending money.
It's far from ideal and quite frankly ludicrous for it have come to this for a man of his age but it's a way forward and his employer is well aware and happy to work with him and my Mum to get him on track.
We've been quite open in our discussions at home with the children so hopefully the whole experience will add to the financial education we've tried to drill in to them so far!

EssexHebridean

Anna I agree that it IS ludicrous but it does sound like it might be a way forwards, at least. Great that his employer is on-board as well.

Excellent to hear that you're managing to get at least some advantages from a horrible situation with using it in financial education for your children!