Repossession + £96k *update*

ekimnas

The abuse was aimed at iamlegend who clearly has a chip on his shoulder. Do us all a favour and die.

silvercar

08/09/1989 Remortgage taken out with West Bromwich Building Society on my house for £50,000. Mortgage was a 5-year capped mortgage which meant that the interest rate was guaranteed not to go above the ‘cap rate’ regardless of prevailing interest rate fluctuations.

November 1989 I defaulted on the mortgage within the first six months, went to talk to WBBS but was met with a brick wall attitude. The WBBS activated a clause in the contract immediately a payment was missed. Which they are allowed to do, it would have been in the conditions of your mortgage, you only get the capped rate while you keep to the terms, once you miss a payment the cap disappearsI went to talk to my local branch and they did not want to help. Clause in contract, which we were unaware of,Reading the contract is down to you. was that the ‘rate cap’ was lifted and interest rate reverted to the going rate + 2% ie: 16%. This meant that repayments doubled from £444 to £888 per month. That rate sounds horrendous, but remember that interest rates were much higher than they are now.

1990 -93 West Bromwich apply for repossession @ six times, on each occasion I applied for a stay of execution which was granted every time until..And each court application would have incurred court costs that would be added to your mortgage.

09/1994 – House repossession granted by Nuneaton Magistrates Court.Again this incurs costs - court costs, repossession costs and legal costs.

11/02/1994 - Possession order enforcedeviction costs

08/1994 - House is sold by WBBS for £50,000 estate agents costseven though they had valued it 2 years previously at £62,500.prices fell in the early 1990s (I would estimate that its true value in 1994 would have been @ £85,000.repossessions do sell for less as the lender will need to aim for a quick sale and the house will look empty and tired rather than dressed to sell.

1994 – 1997 We spend three years living in rented houses until we manage to get another mortgage in 1997 and just as we are beginning to get our lives back together..lenders do allow people time to sort themselves out, before the go infor the kill.

1999 - Having heard nothing at all from the West Bromwich since 1994 even under current regulations, 5 years later is an acceptable gap.a letter drops through our door informing us that we still owe £96,000, this being the figure that we would have paid had we continued the mortgage for its’ full term !!!I would suggest that this is the costs that have arisen, less the proceeds from sale, plus interest (at the then higher rates) each of the 5 years from 1994 to 1999.

4/10/2000 – Judgement in favour of WBBS – I could not afford a solicitor to defend myself.

01/2002 – Attachment of earnings orders made.Presumably on the basis of the judgement two years previously which hadn't been paid? £250 + £75 per month.
A copy of all files relating to our mortgage was requested, the WBBS took every one of the 40 days it has to supply us with the documents, even then vital documents were missing. It took a further year to persuade the WBBS to release these documents, they were finally sent one day before we were due in court for pre-action disclosure.You could ty putting a complaint to the WBBS for this. You would have to have pursued this avenue and reached a position of deadlock before either the Financial Ombudsman Service or the Financial Services Authority would look at your complaint.


Documents obtained from the West Bromwich show applied fines & charges totalling £24,000 I've detailed above what I think are likely charges(£7,000 being charged before possession took placeThis would include court costs and arrears) in connection with the repossession of our house, I wonder whether the judge would have granted repossession of our house if he had known the scale of fines and charges being applied.possession is based on your failure to make repayments of arrears not future costs.
Below are some of the fines that were charged before repossession took place (these are fines imposed for missing monthly payments of £444. You said they were the difference between the capped rate and the full rate a difference of £444, I don't think "fine" is the word, just a reversion to the standard variable rate.(The following is exactly as it appears on West Bromwich statements that I first saw TEN YEARS after the fines were imposed!!)

02/04/93 Fine £572.04
02/05/93 Fine £593.14
01/06/93 Fine £614.24
01/07/93 Fine £635.34
03/08/93 Fine £620.44
01/09/93 Fine £641.54
01/10/93 Fine £662.64
01/11/93 Fine £683.72
01/12/93 Fine £704.80
01/01/94 Fine £725.88
01/02/94 Fine £746.96
01/03/94 Fine £770.31
01/04/94 Fine £793.66
Interest is charged on the non-payments/ arrears. This explains why they increase each month.
The fines are a sample lifted from a WBBS statement, there are more ! and they do not include the increase in payments because of the cap being lifted !

I have tried to show where the charges come from. Maybe post on the mortgages board (feel free to quote me). I feel sorry for your predicement but I fear this is now just another debt that you will need to tackle.