Arrears of only two months, still starting repossession proceedings.

[Ripley2008]

Hi,

I'm asking for advice for my friend. She has no access to the internet (it frightens her!) and lives alone, so has no family back-up.

 

Basically, she has a well paid job, but got into a few problems a few months back. Of course, ultimately it was her fault, however it started with the banks failure to honour a DD, for what reason we still don't really know, but it happened.

This caused a mushroom effect for the following month which caused her to be overdrawn, and a number of DD not being met. Including her mortgage.

 

She was unaware of this, till the following month, when the bank wrote to her informing her that her DD had not been honoured (one of a few). This letter she received towards the end of the month, just as another payment was due.

 

So, three payments missing. She went to the bank, and was told there was nothing they could do, and 'by the way, you have now incurred charges which will be taken out'. These were taken out BEFORE anything else, including her mortgage, which left her four payments.

 

She HAS been in touch with the mortgage company, several times actually, and it was arranged that they would take out the due payment, plus another half month payment, per month, until she was back up to date.

This they didn't honour. They took the whole amount out in one go, which left her with £21:00, all of her other DD's and living costs for the remainder of the month.

 

She has managed to get her almost back on course, by cancelling all her DD, and paying bills as they have been asked for. She also cancelled her mortgage DD at this time, worried as to what they would attempt next.

She has been sending cheques to them, so has now reached the point where she is just two months in arrears.

 

(my writing of the complete and absolute details may not be perfect, but I hope you get the gist. I'm just trying to give a little background)

 

Now, she has seen a financial adviser, who has been very helpful in that he is organising a new loan/mortgage that will totally clear her debt with her present company (who are Derbyshire Home Loans by the way), and put her back on a steady line. She is just waiting for that to come through.

 

This week, Wednesday, she received a letter from a solicitor telling her that DHL have commenced Possession proceedings of her home, and the hearing is on 21st October.

Today she has received more paperwork, but I have not seen them as yet. She was upset on the phone, and I was unable to completely understand her. Now she has had to go to work, so I will not see them until the morning.

 

The amount owing is £846:00, with a further payment not due until 1st October.

 

Before today's letters we had worked it out that between us, we could get one extra payment in, which would just leave the one month outstanding.

This is what we have been attempting since the arrears. Her funds have been low, so she eats here most days, and I help as I can. I am disabled though, and only survive on state benefits (sorry). Now, I don't know how to help further, I'M at my wits end, so goodness knows how she must be feeling!

 

I'd be grateful for any or all help and advice .... please?

 

Regards

Pauline

[OLIVE.FAMILY]

Tell your friend not to panic. There is no way that they will evict her fot 2 missed payments.

 

I am certainly no expert at this so I can just talk from my own experiences.

 

Ell-enn will be about at some point most probably Monday. She will help out with the forms.

 

In the meantime tell your friend to no longer speak to them over the phone. Only send letters first class recorded and keep the receipts along with the copy of the letter.

 

Keep paying the monthly installments along with whatever she can afford towards the arrears.

 

As long as she can affod to make extra payments seach month on top of her monthly payments she will be fine.

 

Get het to fill in an income and expenditure form over the weekend. She will then be able to see what is going on. With unsecured debts like credit cards and loans offer them token payments for a couple of months untill she gets back on her feet. Again tell her to write though so that she has proof.

 

With help from Ell-enn and the gang on here she will have this sorted in no time.

 

Hope this helps

 

olives xx

[Ripley2008]

Thank you for your advice, and reassurance olives, much appreciated.

 

As soon as she's over tomorrow I shall show her.

 

Yes, it certainly does help

 

Pauline

[Ell-enn]

Hi there. try not to worry too much, I'm sure we will be able to help. Ask your friend to bring all the paperwork she has tomorrow. I'll be on line most of the day so we can make a start.

 

Your friend should think long and hard about a consolidation loan - it's not always the answer and can cost a lot more in the long run and financial advisors are always helpful when they are in line for a heft commission for arranging loans.

 

Kind Regards

 

Ell-enn

[Ripley2008]

Thank you Ell-enn,

I will tell her to drop it off for me, however, I'm not sure she will be here herself. At the moment she is working any spare shifts she can in her job, so if anyone has called 'sick' today, she will work.

 

TIA

Pauline

[Ripley2008]

Hi, Sorry for the late hour getting here, but had a rather eventful day, which culminated with a visit to the ED with my G'son and his split head!

 

My friend, in the meantime, whom I left here managed to crash my computer whilst doing the only thing she is able to on here ... play solitaire!

 

Anyhow, she brought with her the mail she received in yesterdays post.

 

It's from the court and are a copy of the claim for possession by DHL, and a defence form for her to fill in and return.

 

One point I omitted from my original post yesterday was that she HAS restarted the DD with them. The first payment by that method is due out 1st Sept. If that has any relevance.

 

She was wondering if she write to either the mortgage company, or their solicitors to explain the situation?

 

and also, MUST she go to the court?

 

Regards

[OLIVE.FAMILY]

she should write to te mortgage comapny and send the letter recorded first class. Always do this as they have a habit of conveniently lossing letters.

 

YES SHE MUST ATTEND court. She could get this posession order wiped out. If she does not attend they will get what is called a suspenede possesion order. This means that if she makes so much as a tiny mistake they will go for full possesion. Even if the mortgage comapny say there is no need to go STILL go as the mortgage comapny will still be going.

 

Is she paying any extra towards the arrears???

olives xx

[OLIVE.FAMILY]

Sorry forget to say. I hope your Grandson is OK xx

[Ripley2008]

Hi Olive,

 

(I told her that she MUST go, but it's better coming from someone else, thanks)

 

We are getting together the one months extra, to be paid basically on the same day, UNLESS the 'loan' that she has applied for, and unfortunately is adamant she still wants comes through. In that case, she will pay what's in arrears completely. (in fact, it is her intention to pay off this morgage completely, and have another with someone else)

 

G'son had a rather deep cut on his head, but they 'glued' the ends together, and is fine now, thanks for asking.

[Ripley2008]

Sorry, for 1st September, read OCTOBER

[Ell-enn]

What date is the court hearing? Is it an N11M defence form she has received?

[Ripley2008]

Hi Ell-enn,

The hearing is set for 21st October, and the number on the bottom of the form is N120

[Ell-enn]

OK, the defence form that comes with that will be the N11M, so we need to get cracking on that, especially the statement for Q.27 which is the most important part and I will make a start on the text for that.

 

If you let me know when she is able to start completing the forms I can guide her through it.

 

Kind Regards

 

Ell-enn

[Ripley2008]

Hi Ell-en,

 

Will tomorrow be ok? She has a day off, and can be here for most of the day.

 

Regards

[Ell-enn]

No problem, that will be fine.

 

Ell-enn

[Ripley2008]

That's brilliant, thanks so much

[Ripley2008]

Hi Ell-enn, here whenever you're available

 

P

[Ell-enn]

Hi, OK the first thing she needs to do is the income and expenditure part of the form. "practice" in pencil first to make sure she gets the sums rights and that the amount left over is what she wants to offer towards the arrears each month. When she has done that we will move on to the rest of the form.

 

Unfortunately I won't be online again till tomorrow morning as I have a work commitment this evening. However, we have plenty of time to do the form as you have until 2 weeks before the hearing to get them to court.

 

As the arrears are under £1,000 there will be no problem getting the possession suspended, tell your friend not to worry.

 

Kind Regards

 

Ell-enn

[Ripley2008]

OK, we'll sit and do that this evening, and get back to you in the morning.

 

She says, thank you ... she already feels easier

 

Regards

[Ripley2008]

Hi Ell-enn,

 

We're here, and done what you asked.

 

(when you're ready)

[Ell-enn]

OK, I need to know

 

what the reasons for the arrears were?

 

how much she is able to pay each month towards the arrears in addition to the normal monthly payment?

 

Does she have any children?

 

I can then finish the statement for Q.27, and we can get on with the rest of the form.

[Ripley2008]

Ok, the reason for the arrears started at the end of the tax year. her place of work messed up with ALL wages. She was paid one weeks wage instead of a months .... followed by full wage after a week.

All her DD's were due during that time, this left her OD, and incurred charges from bank. Which of course they took.

She sent a cheque to cover, but they also took monthly DD. Following month, bank charges .. again OD. She then cancelled DD, with fear of this continuing.

She has written to them asking for new DD, which she's received and set up. She also asked them if she could pay extra £100pm to clear. They replied yes, and she is now waiting for 1st payment to come out.

 

She can now afford £150 extra pm.

 

No children.

[Ell-enn]

Hi, affixed is the statement for Q.27.

 

You can download the form from here: Her Majesty's Courts Service - Home - select Forms and Guidance from the menu on the left hand side and enter N11M in the box, you will be taken to the page where you can download the form. You can then just copy and paste the text I've affixed into the space on the form.

 

Do you need help with any of the other parts of the form?

 

 

Kind Regards

 

 

Ell-enn

[Ripley2008]

Hi, don't see the statement Ell-enn. Is it me?

 

Just a query from me really.

 

On the expenditure part. These are excluding the mortgage, yes? If not, under which would it go?

[Ell-enn]

Ooops, sorry, forgot to attach it (keep getting interrupted at work)

 

Yes, it's excluding the mortgage payment - they already know that.

 

Ell

Ripley Q.27.doc