Mortgage Problem

[Catchleen]

My OH and I sold our house a couple of years ago to try to have a better life for our kids and ourselves. We have amassed massive debts without really knowing how and took the decision to sell the house, downsize and clear what we could. We got a mortgage with Capstone for the new house and they wanted us to pay off all our credit cards and we said we would. We sent a letter to the solicitor also saying we would. However when we moved, we needed to do things to the house and didn’t pay off all the cards. Now we are having difficulty paying the mortgage. We missed a payment and were paying extra each month but can’t keep it up. We need to write to Capstone to see what we can do. However they are now going to find out that we didn’t pay off all the cards and I’m scared they are going to ask for the full amount. I’m even thinking of contacting one of these companies that buys your house and rents it back to you, but that scares me too. I had gone to the CAB and have made payment arrangements for the cards so that is in order, but at the time of contacting the CAB, we were managing the mortgage. We are going to court with Abbey re bank charges and that’s one of the reasons we are in the situation. Should I go back to the CAB and get them to contact Capstone or should we do it directly? If anyone has any ideas/advice, I would greatly appreciate it. I want to stay in the house but am open to suggestions of how to best deal with this.

[sequenci]

Hello there, sorry to hear about the situation.

If you didn't have any of the credit debts would you be able to meet your mortgage payment?

What kind of mortgage do you have?

[Catchleen]

Its a repayment mortgage. Most of our credit cards have accepted a £1 a month, so that's manageable. Its a mix of things really that is causing it - I'm doing temp work and that is covering childcare and food, but trying to cover the other bills and the mortgage is a problem. My husband changed job with a better salary but its a bit further away and of course the petrol is more. I'm trying to sell my car and downsize but they all take time. We were managing but then had some big unexpected bills like the car breaking down and we'd cancelled all our AA to make sure we had enough to cover the mortgage, then dd's were bouncing and the charges from the shabbey would then put us back to square one. I'm waiting for the next direction from the court re the bank charges but its a slow process! Normally I wouldnt get stressed with that, but we really need the dosh, and then we can claim back the other charges from the last couple of months. I think I'm ranting now .. I'll shut up!

[zander]

Originally Posted by Catchleen

My OH and I sold our house a couple of years ago to try to have a better life for our kids and ourselves. We have amassed massive debts without really knowing how and took the decision to sell the house, downsize and clear what we could. We got a mortgage with Capstone for the new house and they wanted us to pay off all our credit cards and we said we would. We sent a letter to the solicitor also saying we would. However when we moved, we needed to do things to the house and didn’t pay off all the cards. Now we are having difficulty paying the mortgage. We missed a payment and were paying extra each month but can’t keep it up. We need to write to Capstone to see what we can do. However they are now going to find out that we didn’t pay off all the cards and I’m scared they are going to ask for the full amount. I’m even thinking of contacting one of these companies that buys your house and rents it back to you, but that scares me too. I had gone to the CAB and have made payment arrangements for the cards so that is in order, but at the time of contacting the CAB, we were managing the mortgage. We are going to court with Abbey re bank charges and that’s one of the reasons we are in the situation. Should I go back to the CAB and get them to contact Capstone or should we do it directly? If anyone has any ideas/advice, I would greatly appreciate it. I want to stay in the house but am open to suggestions of how to best deal with this.

It never rains but it pours! I sympathise with your predicament and wish you all the best in your attempts to sort it out.
Firstly, who are Capstone? are they a broker? Who is the mortgage with? Regarding the additional funds raised for consolidation, unless paying the cards off was a condition of the offer, they (the lender) can't do anything.

First step is to talk with your lender and pay as much as you can afford towards the arrears.

[Catchleen]

Thanks Zander. Capstone are our mortgage lender. The mortgage was originally with Southern Pacific but Capstone nought them out last year. I'll have to reread the offer and see if they had made the credit card payments as a condition. They didn't pay them when we moved, it was down to us. Thanks for the replies and I'll get composing to Capstone x

[timeforchange]

im also in the same boat as you, my mortgage was with preferred, but now it is capstone, we got the mortgage and some extra to pay off our old debt, but alas, things needed done in the house as it was falling apart, bank started charging 125a month etc etc, i have two of my main credit cards on a payment plan, but they only took it down to 20 and 25 a month (how did you get them down to £1?, they would not accept this from me although thats about all i could afford!) anyway, it all spiralled out of control, then Other Half was laid off, took him 4 weeks to find a new job and the pay is S!!t ,then had to work another week lying on, now i am a month behind with my mortgage, and the next payment is coming out next week also a month behind with secured loan, i arranged with loan and mortgage to pay half of the arrears today, but my OH's pay has came through as only 290 (not 400 as expected) ( said i would pay 147 to mortgage and 136 to loan) obviously i cant pay it, starting to get really worried and i really dont want to ring them (but i will have to). mortgage comes out next wed (294) and loan comes out on monday (272) , dont get paid till next thursday now and it is only going to be 300

[Catchleen]

Timeforachange, this site has helped me so much, I wish I had found it a long time ago. The cards that are accepting £1pm have been set up through the citizens advise, but some they have written to are not (MBNA & LTSB). Once they pass the accounts on the CAB will negotiate with the DCA, or I am feeling confident enough to! We have barclaycards which we are dealing with ourselves, thanks to the support of here and I've sent cca requests and so far they have only provided an application form. I'm paying them £1pm as a gogw. Mercers keep phoning the house and I've sent them a telephone harrassment letter which shut them up for a while and now I've just sent them a non-compliance letter, so we'll see what they do with that.
I'm composing my letter to Capstone to ask if they will accept reduced payments until things settle a bit. I really hope they do. I'm trying to study so I can change my career and earn some more money, not have to pay so much childcare and start to pay off a little more, or at least not feel so sh*t scared all the time! My hubbie works really hard and deserves to get a brilliant salary but the money is always cr*p in catering (but at least he can cook a meal with hardly any food ). I'll keep my post updated on the outcome of the letter ...

[powelll]

i have two of my main credit cards on a payment plan, but they only took it down to 20 and 25 a month (how did you get them down to £1?, they would not accept this from me although thats about all i could afford!)

Credit cards are a non priority debt which means ( compared to secured lenders like a mortgage ) that they are limited in what they can do if you can't afford to pay. Standard advice is to do budget sheet with income then essential outgoings only ( no payments to non priorities at all ) the idea is that these creditors get what's left over even if it is only £1. It doesn't matter what they will agree to - pay the £1 anyway.

If you have any debt with the same bank you use for a current account then you need to move banks as well as they have th first right of offset over funds paid in so if you owe them on a credit card or loan or overdraft they can just take you wages or benefits...

You may benefit from advice on your whole situation from national Debtline on freephone 0808 808 4000, it's free confidential impartial advice. Couple of useful links below as well.

Best of luck

National Debtline England & Wales | Personal Budget Sheet

National Debtline England & Wales | Debt Advice

[Catchleen]

Thanks Powelll, I didn't know that about the current accounts and cards/loans with the same bank - its the abbey cards that aren't accepting an offer. Useful info x

[powelll]

No probs Catchleen; best of luck with it all