Northern Rock / Picture The Loan - Please Help.

[Boss-man]

Hi,

I'm writing in the hope that somebody could provide advice for a close member of my family, whose financial situation may be worse than my own - and thats saying something!

Basically, she has had a mortgage with Northern Rock for about 4 years.(about 75% LTV). Last year she was struggling with a huge number of un-secured debt. She foolishly was advised (or pushed!) into taking out a secure loan with Picture (who told her this was her only option!!) and it paid off most of this un-secured debt.

The monthly payment on the picture loan is higher than her NR mortgage and she is struggling with the repayments. Although I have worked out her income / expendature budget and she can afford the payments on both and still has surplus income - she just needs to tighten her belt.

Now to the advice needed (I hope someone can help):

Northern Rock:
She missed a number of payments on her mortgage and they issued court proceedings and hearing date set for April. She managed to bring the arrears to under two months before the hearing date and it was adjourned. She has now let the arrears slip to back over two months again (dont even go there) and they have relisted the hearing. She has spoken to them and sent them a budget plan with the offer to make payments from this month plus a reasonable sum towards the arrears, however they've said verbally this will not stop them going to court. They said unless she brings the arrears under 2 months the hearing will go ahead - any advice on this would be greatly appreciated as I'm out of my depth. She could probably bring the arrears to under 2 months but this would mean missing a payment on her secured loan to picture - who as you'll see below are complete a**holes!

Picture:
As I said earlier picture talked her into taking out this secured loan to clear her un-secured debts saying it was her only option. The monthly payments on this are higher than the mortgage itself - looking into the agreement they have sold her payment protection insurance on the loan which they have added to the balance and are charging her interest. If the info I have on the account is correct the cost of the PPI alone is over £15,000. They also refuse to negotiate with her anyway when she's struggling and TBH are downright rude on the phone just reeling off threat after threat. She missed one payment with them last year which the relucatantly added to the balance - the now keep saying that if she misses just one payment they will take further action and also re-instate the arrears on the account. Again, any advice on this would be greatly appreciated - I know there are various issues relating to the mis-selling of PPI for a start but just dont know enough to advise her.

As it stands, she can pay Northern Rock to bring under two months arrears and adjourn the hearing, but if she does she will miss a payment on her picture loan. Help!!!

Many Thanks in advance to anyone who could help, apologies for the long post - just wanted to try to get all information over.

[Ell-enn]

Hi there. Well it sounds as if your friend is between a rock and a hard place here. However, if Northern Rock were to issue possession proceedings we can deal with that.

I think however, the main thing is to get the Picture PPI stuff sorted out - that's not my area of expertise but I will ask someone else to have a look at what might be done to help.

Kind Regards

Ell-enn

[Boss-man]

Originally Posted by Ell-enn

Hi there. Well it sounds as if your friend is between a rock and a hard place here. However, if Northern Rock were to issue possession proceedings we can deal with that.

I think however, the main thing is to get the Picture PPI stuff sorted out - that's not my area of expertise but I will ask someone else to have a look at what might be done to help.

Kind Regards

Ell-enn

Much appreciated, thanks.

On the Northern Rock side of things, do you think if she puts her 6 month budget plan and payment offer in writing they may still consider adjourning the hearing even if the collections operator said on the phone they wouldn't. She is terrified of the court being involved. She is saying that she is tempted to pay Northern Rock to bring the arrears under 2 mths thus suspending the hearing and then missing a payment to Picture. I'm unsure whether this is the best thing to do though and don't know what to say to her.

[Ell-enn]

It's a tough call and the decision has to be hers - If she is going to make a payment plan offer to NR then she needs to be sure she can afford to keep up the payments.

The collections departments of any of these institutions will be aggressive and threaten allsorts so they can meet their targets. However, there are guidelines they all have to adhere to where their customer is experiencing payment difficulties - and they have to be seen to be helping them to come to an arrangement.

Ell-enn