Serious mortgage arrears

Ad_&_Blair

Hi there, we have mortgage arrears totalling approx 4 months. We are with GMAC (!) as we have bad credit from previous debts. GMAC have actually been very patient with us and are accepting payments as and when we can make them. Does anybody know if they can repossess our house or threaten us with this if we are still making some form of monthly payment, albeit less than the actual monthly payment? Also, we have about 2 years to run on this mortgage before we can get away from the redemption fee - is there any way this can be gotten round and are there any high street lenders who might consider remortgaging us. We are falling behind because the interest rate is so high and we are on interest only too. HELP!!!

ecoelle

ok firstly don't panic
secondly try to think it through
what are you spending? how much more are you spending then you earn? is there anywhere you can spend less? do you have anything you can sell? is there anywhere you can save money eg cancelling tv packages, switching electric/gas/phone, not using amobile, they may all seem small things and a bit of hassle to sort out but they'll add up and maybe free some cash to get the mortgage paid without this constant worry. I'm off now but i'll be checking in tomorrow. sleep well.

poppy10_2

Ad_&_Blair wrote: »

Does anybody know if they can repossess our house or threaten us with this if we are still making some form of monthly payment, albeit less than the actual monthly payment?

Of course they can

Ad_&_Blair

Thanks Ecoelle. We'll have a look at our outgoings and maybe we will be surprised at what we can save. We don't go out, neither of us drink and only my husband smokes but he gets duty free so that saves us a few pennies. Our problem is that my husband is trying to start a business with virtually no capital and his income can vary each week from nothing to £300 +. Anyway, we'll have a look at the outgoings and take it from there.
Good night.

Merlot

poppy10 wrote: »

Of course they can

That was a useful post , Ad and Blair pop over the Debt free board and post the same on there, you will get lots of help and advice on reducing your expenditure, I doubt you will be able to re-mortgage with your outstanding arrears, but you must take action today and reduce your outgoings and possibly increase your income otherwise poppy10 will be quite correct in her post, GMAC are very helpful, I used them in the past when my OH was self employed and we couldn't get a high street lender to loan to us, but they will want there money soon, please please pop over to the DFW board now and post and I will welcome you there.

Merlot

MissEyre

Hi, why don't you post your query over on the Debt Free Wanabee board? A lot of the folk over there have experienced similar situations, and will be able to give you advice about how to manage your income and debts, which order to make payments and other people who can support you when you need to discuss your debts and arrears with the companies...

All the best, good night x

MissEyre

Cross post!

Merlot

MissEyre wrote: »

Hi, why don't you post your query over on the Debt Free Wanabee board? A lot of the folk over there have experienced similar situations, and will be able to give you advice about how to manage your income and debts, which order to make payments and other people who can support you when you need to discuss your debts and arrears with the companies...

All the best, good night x

cross post, we are waiting for you ad and blair, please come over.

Merlot

MissEyre wrote: »

Cross post!

cross post again,

ecoelle

Ad & Blair. Don't be scared, i think it's fantastic that you are facing up to your problems, it's the hardest thing to do but now you've done it keep on top of it. Hope to see you around again soon, the debt free board isn't too scary and everyone is really helpful and supportive see you soon. elle x

HugoSP

I narrowly missed mortgaging with GMAC recently on a rental property.

I was unsure of whether or not I had had a lucky escape. It seems from this thread that I didn't.

OP - They are treating you well - you would be well advised to build upon the relationship by doing what you can to help your situation.

1) Approach them with a view to changing your repayment mortgage to interest only, or extending your term.
2) See how you can reduce your outgoings
3) See how you can increase your income
4) Find out what benefits you could be entitled to - I knew someone with crippling debt who wouldn't even claim his free car tax for his disabled daughter. That in itself wasn't a huge amount of money but he hated relying on the state - instead he dragged his family into a lifetime of debt for his principles - not bright.
5) See if you can sell stuff you don't need to reduce your debt with them. Anything from that 2nd car to unwanted furniture etc.

This site has a huge weath of info on all the above.