Mortgage Dilema

SamzDev

Hi there. Please HELP.

I've been reading all the advices given but mine could be ina different category and i nee help pleeeeeeeease. I own a property which i bought when i was separated from my husband. We got back together and i rented it out. ALthough the rent was not enough to cover the mortgage i have always topped it up but i never told the mortgage company that i was not leaving at the address. Bills kept creeping up as i also had to contribute towards the property i live in now plus loan arrears and all sorts of debts which am trying to clear now. I called my mortgage co. to let them know that bse i wa behind with arrears, i wd try and clear the debt in a few months (3-4) that was in march, since i had started a new job. At the time, the lady i spoke to said it was fine as long as i did not miss any mortgage payments which i have maintained. Last week someone again called me to tell me that i have to pay by 30th April or else the locks will be changed on the property! And since they have the permission to evict me, (had been to court before due to arrears).

However one of my previous tenants run out before i knew it i was another month in arrears! In this case, am not in aposition to pay their required £3000 arrears plus another £1500 owed to the council as arrears for service charges ++. What do i do and would the judge listen to me since am maintaining the mortgage at the moment. Also i dont want them to change the locks as the tenants will be thrown out. Another part of me thinks, i shd give up the fight, let the tenants move and let the house go because i feel i cant deal with the pressure anymore. Can the mortgage company really change the locks on the property due to these arrears instead of waiting for me to pay off in instalments as agreed? I dont know much about these issues PLEASE HELP. And if they get to know about the tenants whats the worst they can do since it was a way for me to maintain the mortgage? Today is 1st and am just aiting for either their call or a letter to tell me when we are going to court again. I intend to plead my case so that it gives me time to sell in my own time 2-3mths as the house has some equity in it. But if they sold it, they wd do it on the cheap just to get their money back. PLEASE ADVISE. THX.

silvercar

Can the mortgage company really change the locks on the property due to these arrears instead of waiting for me to pay off in instalments as agreed?

Yes. If they already have a suspended possession order they can get possession if you don't keep up with the agreed repayments.

If you want to try to prevent the repossession the form you need is N244, but you may find it difficult if you have breached the previously court approved, suspended repossession order.

And if they get to know about the tenants whats the worst they can do since it was a way for me to maintain the mortgage?

Little now, as you did not have the mortgage lender's permission to let, the tenants have no rights and will be turfed out on repossession. Had you obtained permission the lender would have acknowledged the tenancy and your tenants could remain in the short term.

I intend to plead my case so that it gives me time to sell in my own time 2-3mths as the house has some equity in it.

Is the property on the market? Are your tenants aware that (a) you have mortgage arrears? (b) you are letting without permission (c) they could be turfed out with no notice? (d) you need to sell up?

But if they sold it, they wd do it on the cheap just to get their money back.

They have a duty to get the best price in a short time.

You will be stung for selling costs, legal costs etc but if there is money left over it will be returned to you.

For you it is a headache and a time consuming bother, for your tenants it means losing their home.

SamzDev

Thanks Silvercar. The house is on the market but am worried whether it can sell fast before the mortgage company decided to reposses. Since they have the repo order, how much notice would they need to give me before taking charge of the house? Tenants are aware i want to sell but have not started looking for alternative accommodation yet because i cant tell when the mortgage company will strike about their arrears!! Pressure, pressure. Another part of me tells me that i should just let them take it, sell it and if i owe anything, how would they correct that from me? Does the 12yr rule apply here. Sorry for sounding stupid but am sooooooo worried.

Conrad

They can persue you I think for 12 years, certainly I know of one where the client was presented with a bill 10 years after repo.
If the lender has a repo order I would have thought they will take possesion anytime now. I'm not sure notice will be given.

Bankcruptcy is certainly something I would consider in order to start with a clean slate. My brother did this 3 years ago - best thing he ever did, and noe of the pub scare stories one hears banaded about.

Gloster_Advise

Even if you had enough equity in your propetry to re-mortgage the rates currently on unlimited or more than 3 in 12 are round 9%. You may not even be bale to afford the new monthly payment.

Has a date been set for eviction?

From what has already been wrtitten it does sound as though you will lose the property after the suspended order failed.

Gloster_Advise

Just thought,

even if you do re-mortgage it would probably have to be on a BTL basis. That makes it even more difficult in the current climate.

SamzDev

Thanks for your advice. I do appreciate. Remortgaging is out of the question. Bad credit due to credit cards etc. Bankraptcy? How would that work out for me if i already own another property with my partner who is not party to this other property. The reality is am paying the mortgage and am up to date with the current payments. I missed only two payments (due to payment of my son's school fees abroad) - which they are pursuing and threatening me with reposession. Should i stop paying instead. Let them take the house cos the pressure is whenever u speak to someone on the phone, u start explaining all over again and they dont want to know. I had asked for 3mths to make up the missed payments but their pressure on me wont even let me concentrate on getting this money and feel like giving up. Am also scared of the estate agent not being able to sell before they come knocking on the door. Thanks again for explaining.

silvercar

The positive of bankruptcy is that the shortfall on the mortgage is written off, the negatives are numerous.

The official receiver would take the beneficial interest in your home, this is any equity in it. Your partner could buy this back if your partner could afford to. The Official receiver would probably allow you to continue to pay the mortgage on your residential home if the home isn't excessive in terms of your needs and the mortgage isn't massively higher than a rental property would cost.

The official receiver would examine your finances and decide if you have enough spare income (remember your unsecured debts have gone) to be expected to pay money to your creditors. You would possibly have to find someone else to pay private school fees as the OR may not see these as essential expenditure. Whether bankruptcy effects your employment depends on your work.

Post on the bankruptcy board for some good advice.

SamzDev

Thanks Silvercar for all the advice. I'll keep the property on the market and see how fast it can be sold. If it all works out before they come knocking well and good, i can pay them off and concentrate on one property. Thanks again.