possession order on my house

[coinkingwest]

hi hope someone can advise me, as never been in this situation before

on the 12th of March 2008 my mortgage company {redstone) informed me by way of letter that they have started proceedings to possess our house.

 

this came about because i missed two mortgage payments , i am currently in arrears by £2481.53, my monthly payments are £874.49 . i have been in arrears before and i managed to clear them, i had to have an hernia op i was off work for 8 weeks i am self employed. at that time redstone were not sympathetic at all and it just seemed like they wanted to take our house.

 

I am managing to pay the mortgage each month but cannott pay off the arrears at the rate redstone would like, they want me to pay a full payment half way through the month aswell as my normal payment,

and because i cannott do this they have sent me another letter stating that i must attend court on the 15th April where upon they will ask the judge for a possession order. i have put my house up for sale and have just reduced the price. is there any hope for us. thanks mw

[rory32]

Hi coinkingwest and welcome to CAG.

 

Have a read here regarding mortgage arrears and possession orders.

 

I have moved your thread to the Mortgages and Secured Loans Forum where I'm sure you will receive lots of help and advice on your situation.

[rory32]

Something that you should be aware of regarding mortgage arrears and possession orders.

If they apply to court for possession you can rely on s.36 (2)(b) of the Administration of Justice Act 1970 which allows the court to suspend the possession order for such a term as the court considers reasonable. If the debtor can repay with in the reasonable time no possession order is granted.

 

Under s8 AJA 1973 in exercising the powers under s.36(2)(b) the court only has to consider the sums payable in arrears not any term which may render the full amount repayable.

 

What amounts to a reasonable period will depend on the circumstances of the case and can include the whole remaining term of the mortgage as occurred in Cheltenham & Gloucester v Norgan. This case also stated the factors the court will take into account when deciding what is reasonable:

 

Ability to make payments now and in the future

Likely duration of financial difficulty

Reason for arrears

The period of agreement remaining

 

So basically if you can show you can pay off the arrears over the remaining period the court will not order possession.

[ananya]

hi hope someone can advise me, as never been in this situation before

on the 12th of March 2008 my mortgage company {redstone) informed me by way of letter that they have started proceedings to possess our house.

 

this came about because i missed two mortgage payments , i am currently in arrears by £2481.53, my monthly payments are £874.49 . i have been in arrears before and i managed to clear them, i had to have an hernia op i was off work for 8 weeks i am self employed. at that time redstone were not sympathetic at all and it just seemed like they wanted to take our house.

 

I am managing to pay the mortgage each month but cannott pay off the arrears at the rate redstone would like, they want me to pay a full payment half way through the month aswell as my normal payment,

and because i cannott do this they have sent me another letter stating that i must attend court on the 15th April where upon they will ask the judge for a possession order. i have put my house up for sale and have just reduced the price. is there any hope for us. thanks mw

 

Hi there and welcome from me too

 

Please try not to worry too much, although the prospect of repossession is terrifying, the reality is much different.

 

Your arrears are relatively small in relation to your payments, 3 months and it's court though, which is the same for so many mortgage lenders.

 

Have you received any documents from the court yet regarding the claim for possession of the property? When you do, you must acknowledge the claim and defend the repossession, making a realistic offer you can afford to pay on top of your monthly installment. Don't get pushed into paying more than you can afford as you don't want to put yourself in financial difficulties. As long as you can show that you can clear the arrears in a reasonable time, then the court should suspend the repossession, allowing you to clear the money and keep your home.

 

I've been through a suspension of eviction hearing this year, 1 step on from you, with £6600 of arrears and thanks to the excellent help from CAG and Ell-en, we had our eviction suspended indefinitely, as long as we keep paying the installment plus the agreed amount towards the arrears, in our case £100.

 

The court hearing itself will be informal, just you, their representatives and a district judge. If you can, and if it is available, try to see a CAB welfare officer, they are based at many county courts, and they may be able to speak for you in court and offer some help and advice. They will also try to negotiate with the other side before going into court and come to an agreement.

 

Anyway, all the very best of luck, keep coming back and let us know what happens.

[coinkingwest]

hello thanks for your support,

 

I went to the cab today who were helpfull, they told me to go to the law centre, who helped me to fill in my defence form explaining that i could pay the mortgage and £50.00 off the arrears each month, also we attached proof that our house was for sale , hope this will be enough to swing it my way.

 

I will keep you updated

 

many thanks mw

[ananya]

Hi, that sounds positive to me and remember the DJ's tend not to like the bullying tactics some lenders adopt.

 

Also, if it is a joint mortgage, it looks good if you both go if you can.

 

We also took an income and expenditure form from here - National Debtline England & Wales | Personal Budget Sheet and proof of hubby's income to show we could afford the proposals.

 

If you do add these documents, remember to take 3 copies with you to court, one for you, one for the other side and one for the DJ and ask the usher to pass them on to the DJ for him to read along with the other notes, before the hearing

[coinkingwest]

hi we are in court tommorow thanks for all your help we will let you know what they decide.

 

MW.

[ananya]

Keeping fingers crossed for you.

[Cornucopia]

I find it very upsetting to read threads like this, especially in the current climate. However, I can say that you are likely to get a positive response from the Court as I know of somebody who was in almost the exact same situation as you recently and their realistic proposals for settling the arrears whilst keeping their home was accepted and is manageable.

 

Do you actually WANT to sell your home or are you thinking this is the best way forward? If it is because of this situation, then I would advise you to sit tight and wait. You will hopefully have a positive outcome tomorrow but now is not a good time to sell and you have all the added expense of HIPS etc. If you really want to live in your home as a family home rather than an investment, then take it off the market. You could just as easily fall into arrears with rent and the situation would be far different.

 

Just my thoughts, but I wish you well for tomorrow.

 

With best wishes,

 

Corn x:)

[Goldlady]

Hi, best of luck from me too. I agree with Corn, don't sell your house if you don't have to... We have reduced our mortgage to interest only for the time being (which is slightly better than paying rent) and I would agree with everyone that if there is a light at the end of the tunnel the courts will not allow repossession to take place. I went to court last year with my friend and it was fine. Do not let their solicitor (who is likely to be some newly or partly qualified solicitor who knows s*d all about your case) persuade you to agree to anything you can't afford. The courts have the power to spread arrears over the remaining term of the loan if necessary. Just be sure that whatever you offer is affordable and do not be intimidated into agreeing to pay too much.

[ananya]

Any news?

[coinkingwest]

hi everyone, firstly thanks for all your help I won in court Tuesday, feel about 2ft taller.

 

judge agreed with everything i said, despite that the mortgage company tried to get another £50.00 on top of what i was offering,

 

the judge reminded them about the norgan case and ruled in our favour

so we got a suspended possession order, as long as we pay monthly mortgage plus £50.00 that i promised. thanks again, mark

[Bona]

Well done

[Ell-enn]

That's great news - well done for being strong. Trust you can relax now.

 

Kind Regards

 

Ell-enn

[Goldlady]

Excellent news - so pleased for you.

 

Goldlady

x

[ananya]

Fantastic news, well done

[Guest TaffR]

Hi,

 

It's hard to know where to start but first I must congratulate coinkingwest on the success at court and everyone here who provided support.

 

It is without doubt, that where ever I go on this fourm and read the many threads concerning sub prime lenders and repossessions, that there remains a misunderstanding of what this market is really all about.

 

I sincerley hope that not only what I am about to share will provide a new impetutus to those in problems today but also to start taking them on at their own game and complain not just to the FOS or FSA but also to HM Treasury who were the UK authors of this financial instrument.

 

With the danger of sounding patronising, which I promsie you I am not, I would like to present some myths and facts about this industry and some of its players.

 

For example:

 

Redstone Mortgages PLC is NOT a company. It is an SPV (Special Purpose Vehicle) that holds securitised mortgage portfilios on behalf of investors.

 

Redstone Mortgages PLC as an SPV do not and cannot employ people. It is a shell company specially created to hold and manage a Mortgage portfolio. A normal portfolio size is circa £1m/800 properties.

 

The Redstone SPV is owned by: HVBEurope.com and you contact them direct here: [email protected]

 

Redstone Mortgages plc was established in April 2004 as a special purpose company to participate in the secondary loan sales market in the U.K., purchasing pools of residential mortgage loans and funding them via securitization

 

All the SPV's mortgages have been securitised and they are 'administration' type only mortgages (don't worry you were not supposed to know this) and they use HML in Skipton as their mortgage servicers.

 

HML - Homeloan Management Ltd

 

The SPV cannot hold arrears and do not have the financial accounting systems to do this. The mortgage has been securitised (purchased on the bonds market) and is valued by Standards & Poors or Fitche ratings. It is the portfolio value that is the mian basis of their commercial activities and it was the devaulation of subprime mortgages that has caused the credit crunch as these porfilos get devalued and not advers borrowers behind in their payments as they all want you to believe.

 

The SPV do not employ and have never been set up to do this, FSA authorised mortgage advisors and without which they cannot assist you, help you, change the contract T & C's, provide holiday payments, capitilise the arrears, allow you to reduced payments...indeed there is nothing they can do to help you. Thye have never been set up to do this and were never going to help you.

 

When you call the 'SPV' in Skipton it will be HML who answer. Thye have 75% of the subprime lenders market. They are just a 'debt collection agency' who are employed to collect the monies, send out statements and chase shortfall debts.

 

The same letter heads are used for all 30+ customers HML carry out mortgage adminsitration services for with the exception of the name and telephone/fax number.

 

The SPV is registered with the FSA as a 'lender' but in fact they do not 'origninate' or advance any lending. The FSA are being questioned about this as we speak.

 

They will portray themselves 9via clever tactics using HML systems) as a trusted, every day mortgage company. They are not. They are a shell company (financial instrument) who pass income from mortgages back thier investors in the Cayman Island and other countries.

 

Repossession is the first resort and not the last - FPD = First Payment Default which is Day 31, litigation action is started.

 

There is no one to talk to about any short term problems you may/do have.

 

Everyone advises that is you have a problem to talk to your 'lender'. Sorry, this only benefits them as they then see a pronlem arising that will effect their portfolio value and your passed direct to litigation. There is absolutly NO benefit to you, the borrower.

 

They must keep up the pretence that they can help so as to pay a lip service to CML/FSA rules.

 

I have researched this market now for 3 years and I am sorry you (like me) feel duped from the start an that is exaclty what has happened.

 

I am happy to help, assist and/or answer any questions anyone may have. This has got to stop.

 

Redstone SPV are just one of hundreds of new entrants in this market but to come to terms with this completley you need to understand the whole process from broker to application, underwriting, sale of the mortgage to another 'entity' and then administration of a debt only mortgage.

 

I am sorry, you were never going to be helped, ever.

 

There are now three types of mortgage companies in the UK:

 

Traditional building society/banks – retail outlets, savings & other bank accounts

Originators – borrows funds to provide the mortgage and sells the mortgage immeditaly

SPV’s (Special Purpose Vehicles) – Shell companies, to hold the mortgage account and pass on income/profits to the investors – cannot employ people

 

All but the first are pretending to be mortgage companies in the style of the first.

 

There is so much more....

 

Regards,

 

TaffR

Edited May 12, 2008 by TaffR

[OLIVE.FAMILY]

That certainly is an interesting read. I like many others on this site have a mortgage with Kensington who are also based in Skipton. Do you know if they are one of these SPV companies you are talking about. I am on the understanding that there are quite a few in one building. Apparently the phone number that they give us means the telephone people know which company you are with. For example the same person can answer to four different mortgage companies.

 

You are absolutely right they cannot treat us humans like this any longer. I am currently doing my own investigations to how they practise

 

Olive

[jansus]

I would just like to say thanks for this very interesting post

[Guest TaffR]

Hi Olive,

 

Yes, but now really gone away and lurking in the background awaiting the credit crunch to be over.

 

KMC will act as mortgage company (via their now bankrupt sales arm TML) to lure people in and then they will sell the mortgage in whole to another entity or retain the adminstration rights (income based) and guess who are their servicers? YES!!! HML in Skipton.

 

Only yesterday, I wrote to KMC and their new South African parent company to fire a warning shot over their heads.

 

GMAC and KMC were one of the orginals and it is companies such as these that consulted on the formation of the FSA (regulated mortages) which went live in Nov 2004.

 

During this consultation the HM Treasury wert weak and santioned what they can and cannot tell potential borrowers. The result is that as borrowers, we have been duped and as a commercial entity they profit from the borrowering of funds for your mortgage and instantly selling it on.

 

TaffR

Edited May 12, 2008 by TaffR

[Guest TaffR]

Janus, your more than welcome....there is so much more!

Edited May 12, 2008 by TaffR

[Guest TaffR]

Actually....KMC (Kensignton) have always been an 'originator' and not what they purported to borrowers as being just like a high street mortgage company. Their main business objectives has always been to rope you in, sell you on and you end up with an obscure entity such as Mortgage Agency No 6 ( A Brittania Building Society - SPV for example), based in Skipton (there are/were 30+ clients & I have the whole list of anyone wants it) and it is a debt collector only. You wont know this until you have a problem.

Edited May 12, 2008 by TaffR

[vickson]

Interesting reading indeed Taffr,

 

GMAC also have this address in skipton, ok this gives me more ammunition if I go to court.

 

They have duped us into thinking they are true companies, is this why the sell on mortgage loans to Mortgage express derbyshire and co.

 

I shall be doing more research on this

Edited May 12, 2008 by vickson

[Bona]

Did you know that Skipton own hundreds of estate agents who dont play buy the rules

[Bona]

Also do you know anything about GMAC