Thanks for the reply, we have been trying to cut back on all our outgoing's for the last couple of years, but both of our incomes vary every month - My wife takes as many extra hours as possible at the local supermarket where she now works & I have started a new business that is starting to pay reasonable money (but I only take out what is needed as it's still growing & I need x amount of spare to buy stock etc). I will do the I&E as you suggest with my wife tomorrow. Kensington have said in writing that they would accept £350.00 a month upon us supplying all our bank statements for the last 3 months, which we are going to do next week - but they have now moved on to doing the repo and I wonder if this might just be a rouse to get more ammunition to fire at us in court. Kensington have been VERY lax in their communications and I am considering reporting them to the FSA etc for the way they have handled our case. I am not trying to avoid paying them we just need some help and understanding from them & we will get it sorted - but they just don't seem to want to help... What do you think a Judge would say if we paid off £10K and paid the CMI plus say £100.00 extra a month, with the understanding that when the land is sold that all of the loan would be repaid in full - would that be enough for it to be dismissed?? I know it's the "million dollar" question but looking at what options we might have!

Thanks for the reply... I am hoping to raise £22k from what I have cashed in and the money coming from my Mother, so could clear the arrears and still have some money left to help meet the CMI. But your suggestion of keeping some back does make sense - but if I go to court and say that I have savings that can be used to meet the CMI wouldn't Kensington just ask for all that money to handed over to clear the arrears? Yes the Land has been up for sale for a number of months and we have had a number of viewers but no firm offers. It's price was set by the estate agent's valuer BUT I have taken the matter into hand this week and reduced the price by £15K to try and find a buyer. It has outlined planning permission which I renewed this year, so hopefully it will sell but when is another question, I may have to look at moving it to another estate agent. Should I seek Legal advise about this situation? Or is it a matter that can be dealt with by myself? We dont have lots of money to throw at this as you can understand but I don't want to have our home reprocessed as we can survive the downturn if we just didn't have the monthly payments of the second mortgage, which is why we are trying to sell the land to get rid of this debt.

Thanks for the reply... That eases our worries... I have been thinking about getting legal advise - do you think that is a wise choice?

Our situation goes like this... We bought our current home 9 years ago and took out a mortgage with Northern Rock. We never missed a payment until last year and then took a 3 month break with their blessing we are still paying this mortgage every month and do have a small (less than one months payments) amount of arrears and am paying a small amount in addition to cover this every month, I have no other issues with them or them with me. In 2006 we took out a second mortgage with Kensington to put money into our business to help expansion, You know what's coming next.... Business in the current climate has collapsed and we have run up arrears of £16K on this mortgage. We have been trying for months to get Kensington to agree to a reduced or accept a lower monthly figure until we sell some land that is attached to the property and is on the market for £115K which will more than cover all of this mortgage and leave us a small amount to sort out some other debts. It goes without saying that Kensington have done nothing but drag their feet through this process and they have finally pushed it to the courts and issued a "Claim form for Possession of Property". I have made arrangement with the help of my Mother and with cashing in a policy I had forgotten about that will allow me to pay off all the arrears before the court date (13th Dec). We cant afford to meet the full second mortgage payment with what we both earn at the moment along with the 1st mortgage payment. Doing a I&E we have offered them £350.00 a month. I have never been in this situation before and need any help that I can get please... The last thing we want to do is lose our home... with both mortgages we only owe £225K and the house and land is worth £400K at least... Thanks in advance...