Can I delay the repo to sell it myself

[chris600uk]

Ok, here's an update;

 

I've been very busy moving items of property out of the reach of any bailiff, and just in case I end up bankrupt - so I didn't have a chance to respond to the letter we had from our lender.

 

We had a phone call from them - and they were sooooo nice! Amazing!

 

They were ringing to see if we would pay this months instalment, and seemed surprised that we hadn't cos we'd been so good paying them every month since the susp repo order was made.

 

We explained that we'd expected to have the house sold by now and we'd simply run out of money.

 

So they suggested we ask the CAB help us get the DSS to pay a third of our mortgage, and that by the sound of the paperwork we'd been sent they would probably agree to a shortfall at auction.

 

It seems they have a number of people who are getting a third of their mortgage from the DSS.

 

What do you make of that?

[chris600uk]

Just saw this on the Shelter England website:

 

 

 

If the judge made a suspended possession order, you can stay in your home as long as you keep to certain conditions. The conditions should be explained in the order, but if it isn't clear, get advice. In many cases, it will say that you have to pay a certain amount off your mortgage arrears each month and keep up with your ongoing mortgage payments. When you have paid off the arrears, you simply need to continue to pay your normal monthly payments when they are due.

 

If you don't keep to the conditions of a suspended possession order, you can be evicted very easily. For example, if you miss even one payment, your lender can apply for a bailiff's appointment straight away. There isn't normally another hearing and you may only get a few days' warning before the bailiffs arrive.

 

 

Is this correct?

 

With all that's been said here, this statement doesn't seem right at all -

Or is it?

[Ell-enn]

Just saw this on the Shelter England website:

 

 

 

If the judge made a suspended possession order, you can stay in your home as long as you keep to certain conditions. The conditions should be explained in the order, but if it isn't clear, get advice. In many cases, it will say that you have to pay a certain amount off your mortgage arrears each month and keep up with your ongoing mortgage payments. When you have paid off the arrears, you simply need to continue to pay your normal monthly payments when they are due, but you should apply to the court to have the suspended possession order cancelled!

 

If you don't keep to the conditions of a suspended possession order, you can be evicted very easily. For example, if you miss even one payment, your lender can apply for a bailiff's appointment straight away. They can apply for a warrant of eviction. There isn't normally another hearing You can apply to the court for a hearing to suspend eviction and you may only get a few days' warning before the bailiffs arrive Usually 2 - 3 weeks notice, but I've heard of it only being 7 days, however you can usually get a hearing before the eviction date and in exceptional circumstances on the morning the eviction is due.

 

Ell

[chris600uk]

I take it we're too late to have the susp repo order cancelled.

 

Thanks Ell-en

[Ell-enn]

Hi Chris, you can only have the suspension cancelled when you have paid all the arrears under the original order.

 

If the lender applies for a warrant for eviction then you can apply to the court to have the eviction suspended to give you time to sell the property yourself - we can help you with the application if that is what you decide to do.

 

Ell

[chris600uk]

Hi Ell-en,

 

If it comes to that we certainly will apply for time to sell it ourselves.

 

I'll appreciate any help you can give me,

 

Thanks,

 

Chris

[chris600uk]

UPDATE:

 

 

We've just had a letter saying that they've reviewed the account and want squillions to clear the outstanding repayments.

 

The important bit as far as I can see is where it says that this payment is a condition of your suspended repo order and if we don't pay up they may ask the court without a further hearing for permission to take possession of the house.

 

We were burgled the other night, so frankly the end of this miserable saga can't come soon enough.

 

We are now waiting for the possession/eviction notice, because we understand we can't really do anything legally until then.

[jansus]

Ell-enn is your expert in this field

 

And I am not sure if she would agree with me - but if there is anyway you can try and keep control of the sale of the property please try and do that.

 

The lender is also in the difficult position of trying to market the property fairly and obtain a reasonable price - whilst trying not to let the debt increase.

 

But if they do sell for less that you think it should sell it for you will have a fight on your hands proving that is the case as I think there are only guidelines on how they should proceed after possession. Not regulations.

 

 

As you say depending on the debt after the sale you may still have to consider your options as regards to bankruptcy. Please make sure you keep meticulous records in writing of everything that happens at this stage as there are new guidleines about how the lender must treat you so you need to keep your records in good order in case you have any dispute in the future.

 

Sorry for your situation and hope that you get a lot of support here which may help you through this difficult time.

[chris600uk]

We've just had the valuation.....

 

If the house sells for that figure at auction, we would still owe the lender around £100k

[Bona]

You dont have a lot of options leave fond something to rent while you can and let them repossess then go bankrupt 18months down the line you will be free

[chris600uk]

I've been watching this coming for what feels like a very long time now.

 

I'm still positive though.

 

Our task now is to keep possession until after Christmas and the New Year, and get the house listed at a local property auction.

[chris600uk]

18months down the line you will be free

 

But does that mean free to get a credit or debit card?

[Bona]

You should get a debit card

[chris600uk]

Had a strange letter from the lender - it makes no sense

 

We've already had the house revalued and revalued by various estate agents, and at the lenders request by a chartered surveyor, and by an auctioneer.

 

The lender refuses to agree to an auction, even though the auctioneer values the house at £50k more than the Chartered surveyor and prices are generally falling.

 

This is very odd, why would they do this? I'd have thought they'd want to recover as much money as possible.

[jansus]

Can you actually post up what else the letter says? Are they proposing letting you sell on the open market?

[chris600uk]

Dear Mr and Mrs,

 

Thank you for your recent enquiry regarding the sale of your property and the potential shortfall.

 

Your request has been reviewed by our underwriters and they have made the decision not to allow the property to be placed in an auction for sale.

 

However, we may consider a sale shortfall once the property is marketed at a realistic asking price and the relevant sale documents are received.

 

Please note, whilst your sale shortfall request is being considered, any legal action which is taking place or due to commence, will continue.

 

Yours sincerely,

 

The lender.

[chris600uk]

The thing is this, they have already had the sale documents, the property has been on the market for two years, they insisted on a valuation by a Chartered Surveyor who valued it at £75k less than the mortgage (not including arrears), whereas the auctioneer suggested a guide price of £50k less than the mortgage.

 

House prices are only going to go one way during the next 12 months - down - and that could be by as much as another 25 - 30%.

 

You can see why we thought the auction was a good idea.

[Bona]

We said we were going to auction ours and they said they would not agree we did and got more than er had to pay them just the court agreed with us you need to put a reserve on the auction if they go for repossession you can ask the court to let you sell under the law and proerty act this can be done even if you have negative equity there is case law so you need to write and tell them if they dont agree you will go to court asking for this order for you to sell and quote the case law

[chris600uk]

Is this the legislation you used?

Law of Property Act 1925

 

Where can I find the case law so I can quote it if necessary

[chris600uk]

Would I be threatening to apply for an LPA receivership?

[Bona]

I will look it up we were advised to apply by an apeal court judge

[chris600uk]

Is this it?

 

Palk v Mortgage Services Funding plc [1993] Ch 330, CA, it would appear that a court may, in some limited circumstances, suspend a possession order if the mortgagor is seeking an order for sale of the property under section 91 of the Law of Property Act 1925. Palk's case established that the court has power under section 91(2) to allow a sale by the mortgagor even though the proceeds of sale may be insufficient to discharge the mortgage debt.

Edited January 18, 2009 by chris600uk
tidiness

[chris600uk]

Law of Property Act 1925 (c.20)

 

1 Sale of mortgaged property in action for redemption or foreclosure

 

(1) Any person entitled to redeem mortgaged property may have a judgment or order for sale instead of for redemption in an action brought by him either for redemption alone, or for sale alone, or for sale or redemption in the alternative.

 

(2) In any action, whether for foreclosure, or for redemption, or for sale, or for the raising and payment in any manner of mortgage money, the court, on the request of the mortgagee, or of any person interested either in the mortgage money or in the right of redemption, and, notwithstanding that—

 

(a) any other person dissents; or

 

(b) the mortgagee or any person so interested does not appear in the action;

 

and without allowing any time for redemption or for payment of any mortgage money, may direct a sale of the mortgaged property, on such terms as it thinks fit, including the deposit in court of a reasonable sum fixed by the court to meet the expenses of sale and to secure performance of the terms.

[Bona]

Theres also other case law where the value of the property was also under the mortgaged amount also if you want I will forward you my case number where we were granted an order to aloow us to sell under law and property act although the MC didnt agree When are you i court

[chris600uk]

Don't know yet, I've only just found the legal ruling, but soon I hope because the arrears are just building up, and the house value is still sliding.

 

I had a feeling LM didn't want to do anything, and it occurred to me that they could be waiting for an upturn in the market, at our expense.

Now I'm certain.