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  • FIRST POST
    • sinkingquick
    • By sinkingquick 8th Mar 18, 3:37 PM
    • 1Posts
    • 0Thanks
    sinkingquick
    Looming house repossession. Anything I can do?
    • #1
    • 8th Mar 18, 3:37 PM
    Looming house repossession. Anything I can do? 8th Mar 18 at 3:37 PM
    Not sure whether this is the correct place to post this so apologies if it's not.

    I have a house that I used to live in, then rented it out (with mortgage lenders permission) until the mortgage lender decided not to renew consent to let. So, the house has been sitting empty for about a year while it's been up for sale, I've not been able to pay every single mortgage payment in this time but have paid what I can. Out of 12 months payments I have managed to paid 6 months worth of payments.

    I received a letter and court papers from the mortgage lender saying basically that they are now seeking possession of the property and would only adjourn the hearing if I cleared the arrears in full.

    There is a sale in progress on the house (waiting for buyers solicitor to review contract/submit searches), and I've managed to raise the arrears (2200) in full. I have also had an offer of help from a family member to help pay the mortgage until the house sale goes through, but now the mortgage lender are saying they will only adjourn the hearing if I do all of the below:
    1. Clear the arrears in full
    2. Submit a budget planner
    3. Submit 3 months bank statements and proof of income to prove affordability going forward.

    I have explained to them that if I could afford the mortgage I wouldn't be in the situation I'm in, and that I think they are just intentionally being awkward to make things as difficult as they can, moving the goalposts, etc.

    I want to pay the arrears off, but I'm not prepared to throw 2200 away for them to still pursue possession so I'm just wondering if anyone can offer any advice as to what my options are.

    Can the mortgage lender still apply for possession if there are no arrears at the time of the hearing?
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 8th Mar 18, 4:20 PM
    • 6,385 Posts
    • 13,112 Thanks
    enthusiasticsaver
    • #2
    • 8th Mar 18, 4:20 PM
    • #2
    • 8th Mar 18, 4:20 PM
    If you pay off the arrears and the mortgage is up to date then the mortgage lender is unlikely to proceed with repossession. I would do that as otherwise there will be court costs and legal costs on top of arrears. The only caveat to that is if you leave it too late for proceedings to be cancelled. They are not being awkward in asking for income and expenditure details and bank statements. That is normal policy and if you have nothing to hide you should do that as you are the one who has defaulted. They also don't have to give consent to lease as you originally borrowed on a residential mortgage not a buy to let.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
  • National Debtline
    • #3
    • 8th Mar 18, 4:31 PM
    • #3
    • 8th Mar 18, 4:31 PM
    Hi there and welcome to forum


    Now the court process has started it is possible for the lender to still try and repossess the property, even if you clear the arrears. It's likely you would have to show the court, using a statement of affairs (SOA), that you can afford to pay the ongoing mortgage payments. On that basis I think what the lender is asking for is not unreasonable.


    However what the court may agree to do is adjourn the proceedings to give you more time to sell the property. You will need to complete the N11M court form that you have been sent. You will also need to provide evidence that the sale is in the process of going through and attend the court hearing that has been set. Paying off the arrears as well will go in your favour.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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