Mortgage arrears

gazgaz_2

Hi peeps,
First post and unfortunately rushed as I am pinching time at work here...
Basics first are that we have a mortgage and are £3000 (ish) in arrears:embarasse
I offered to pay them £250 per month on top of our regular payments which is the absolute maximum we can afford for now.
They said that is not acceptable and said they would send us an income and expenditure form.
We have completed this and sent it off in the allotted time (It was posted Tuesday this week) The same day however we recieved another letter from a collection agent saying they are applying to the courts for a possesion order due to the arrears:eek:
We cannot get a loan, we cannot raise this amount of cash anywhere what so ever. I'm TRULY SORRY if this has been covered before but I am at my wits end now and worried what might happen.

Does anybody have any advice/reccomendations?

Thanks in advance...gazgaz

balmk

Hi, can't give any advice, sorry, but wanted to show support.

Have you contacted your local Citizens Advice for guidance?

silvercar

You need to keep firm. They are going to court so that your payments are ratified by the judge. Only agree what you can afford as breaching an agreed repayment plan is a sure way to repossession.

There is a court case, Cheltenham & Gloucester vs Norgan, where the judge agreed that the repayments could be spread over the whole remaining term of the mortgage. Remind your lender that you are aware of this and that they have a duty to "treat customers fairly" TCF - a term they will know of.

You should go onto the DFW board with your income/expenditure as people on there will be able to advise you where you can reduce spending.

Prioritise your debts; number 1 is keeping a roof over your head.

For the longer term you need to consider whether you are going to be able to afford the mortgage payments and whether selling up is a solution.

Conrad

Have you thought about selling the property, clearing your debts and gradually rebuilding life from there?

Very often people apply a temporary sticking plaster and then find they again get into arrears for the same reasons they did prior, so they end up worse off and delay the agony.

Best of luck