Help / Advice needed regarding REPOSSESSION

[Sue.E]

Hi there. I wonder if anyone can give me some advice. To start from the beginning - my husband and i remortgaged our home around 3 years ago and until last year kept up payments. Due to problems within the relationship i had to move out with my son into rented accomodation while my husband stayed in the owned house which has been up for sale since around November. Our repayments per month on a £86,000 mortgage were around £580 per month ! When we started getting into financial difficulty (as i needed to pay my own rent therefore not contribute as fully as normal) we were asked to pay the full monthly amount plus £140 arrears ! This continued for a couple of months till we thought there was light at the end of the tunnel and were offered an interest only quote, however this turned out to be only £40 less than the original payments and they wanted the arrears increased by £20 a month .... so literally only gaining £10 !!!! Our outstanding mortgage is £80,000 now but because this will be the second month that we are unable to pay, repossession will begin. My husband is looking into bankruptcy etc. The aim is not to keep the house. We're trying to sell it. The aim is to make sure the mortgage company get their amount so we can cut free ! but if they repossess surely they wont get the full amount therefore still be chasing. What are the repercussions of this please ! Are the mortgage company able to put a hold on the account till a sale ... what companies would we need to get int touch with.

Any advice would be much appreciated ! Our situation isnt just that we dont want to pay. We literally cannot ! Im taking care of our son therefore need to prioritise a roof over his head, but my husbands wages are sparse and paying the mortgage only leaves him with £150 per month to pay debts and bills. No living. We want to pay the mortgage company everything, and waiting for a sale would be better for them surely ....

[tiglet]

Ok, firstly - welcome to the forums.

You need to breathe and be calm - this situation does need dealing with but try not to get too upset - it's not as bad as you think.

Are you still separated from your husband and is this likely to continue? That's very important in terms of what you need to do next.

You may not need to sell your house and repossession isn't a certainty at this point.

Give some more info and we'll be happy to help.

[Sue.E]

Yes the separation is to continue for the meantime. Its one of them things where we'r saying we'll see in the future but because we both have so much going on at the moment (im doing a teaching degree and he has the prospects of baliffs knowcking on his door) we'r leaving things exactly the way they are. But enough of the relationship talk !!! x

The prime objective is that we want rid of the house. We're trying to sell it but only property investers are interested which wont secure enough finance to pay off the mortgage !

Im not wanting to shun all responsibility onto the ex either. We're still friends and understand we've both made financial mistakes that led us to this situation ! I just want it al to stop !

Thank you xxx

[Ell-enn]

Hi there, I'm sorry to hear you find yourself in this position, it must be very worrying for you both. However, if your lender does start action to repossess (and we are some weeks away from that at the moment) the court has the power to suspend possession until the house is sold (within a reasonable time, of course).

In the meantime you need to write to your lender (don't phone they will try and bully you into saying you will pay more than you can afford) and explain the situation, tell them what you can afford to pay - if it's only the basic monthly payment + say £10 from now on - so be it, but you must keep making some payment. If you are only two months in arrears and are making even a small contribution towards the arrears then there is no way a judge will order possession. When you send the letter include an income and expenditure sheet - you can download one here National Debtline England & Wales | Personal Budget Sheet
showing that you can only afford the normal payment +£10.

Send the letter recorded delivery (make sure you have the correct address of the department) and then check on the royal mail website a few days later to make sure it has been delivered. Print off the receipt and keep with a copy of the letter you sent. You may need to produce this to prove you have tried to come to an arrangement if they start court action.

If you need help with writing the letter please let me know.

Please try not to worry too much, there is a lot we can do to help and the letter may just stave them off until you get a sale agreed.

Above all, stay positive.

Kind Regards

Ell-enn

[tiglet]

Sound advice there from ell-enn.