What A Mess.......can Anyone Help??

[kdsplit]

Hi there, i would like to pick the brains of those in the know how if possible!!!!

 

Ok heres the background.........

 

Mortgage with C&G have 5 months arrears but managed to agree to a reduced monthly payment of interest only starting Nov for 9 months to help get back on track, and adding arrears to mortgage.

 

Secured loan with Capstone/Sppl payments 4 months behind and they wont agree to a reduced payment. Last letter recieved from them 8/09/08 saying account now passed to the litigation dept and solicitors have been instructed to issue proceedings to obtain possession of your property.

You will recieve a letter from our solicitors confirming situation- as yet heard nothing, even after replying with 2nd attempt of reduced payment and forwarding copy of C&G agreement.

 

Any ideas how i can attempt Capstone to play ball like C&G have??????

 

Thanks x

[42man]

Hi Kd...and a warm welcome to the CAG forums, i'm going to move your post to the mortgages section where you should get some more advice/comment

[kdsplit]

Thanks 42man, i got a bit confused on how to post in a particular section!!!

[Goldlady]

For some reason secured loan providers are more likely to issue repossession proceedings - happened to us with GE. We managed to borrow the money from family (we were only 2 months in arrears) and eventually (before the credit crunch) refinance the GE loan with our first mortgage lender and then reclaim all the rotten charges from GE.

 

When you say you are offering a reduced payment, does that mean that you are not meeting the required monthly amount or trying to clear the arrears at the same time as making the usual monthly payment?

[kdsplit]

We have agreed with C&G our main mortgage provider, a 9 month 'breathing' plan where we have changed to interest only payments each month, reducing the mortgage by £250 a month, and paying an extra £50 to cover the arrears a month. We got advice from the CAB and they helped us arrange this with C&G.

We have asked Capstone for the same, as the loan payments are £450 a month and we simply cannot afford it at the moment.

We started a new business last year and at first things were fine, but for the past 6 months we have been struggling with things needing repairing and unexpected bills. Hubby has got a full time job on top of the business so we have a regular income now.

The business is picking up again and we have agreed with C&G that they will give us 9 months to get 'back on our feet', but capstone wont play ball..........................

We have said we will put the house on the market and try to sell within the 9 months if need be.

Any advice????

[Ell-enn]

Hi there, have you written to Capstone enclosing a budget sheet showing your circumstances and asking for help? you need to do this so that if they do proceed to court you can prove you have kept them informed and asked for their assistance. If you need help with this, let me know and I'll draft something for you.

 

When do you think you will be able to recommence normal payments to Capstone?

 

Ell-enn

[kdsplit]

Hi there,

Yes have contacted Capstone with budget sheet, and copy of C&G new payment plan that we have agreed for the next 9 months.

 

We asked Capstone if they could do the same as C&G, and convert to interest only for the 9 months starting 1st Nov.

[kdsplit]

Do you think it may help to send another one?

[Ell-enn]

Wouldn't do any harm to send again, make sure you send by recorded delivery and keep copies of the letter, budget sheet and postal receipt. Check on the Royalmail website a few days later to print of the signature for receipt. Keep all together as you may need them if they proceed to court.

 

Ell-enn

[kdsplit]

I will do that this weekend and post out Monday morning.

I know your probably unindated with requests for help, but your offer previously about helping draft a letter for them........ If you could i would be grateful, you probably word things a lot better!

[Ell-enn]

No problem, will draft a letter and post on here tomorrow:)

[kdsplit]

Thanks Ell-enn,

Im off to work to earn some pennies now!!

[Ell-enn]

Hi affixed is a draft letter. Make sure you send it to the correct department and by recorded delivery.

 

Try to keep the letter all on one page.

 

Any questions, just shout.

 

Ell=enn

KDsplit letter.doc

[kdsplit]

Thanks for that Ell-enn, it is greatly appreciated.

Have posted off today-recorded. Lets see if they reply to this one!

[kdsplit]

Hi Ellen,

sent letter above on 20/10 registered and have reciepts and signed print out.

25/10 recieved letter from capstones solicitors saying if no contact made within 7 days, court proceedings will be issued.

27/10 recieced letter form Capstone apologising for not replying to previous letter as did not recieve it at our offices. The relevent dept will consider my request for change in mortgage terms and will contact me shortly to discuss available options. Solicitors instructed to issue possession proceedings and are waiting confirmation of hearing date. contact them to discuss account and come to an arrangement if possible to pay the arrears outstanding.

28/10 Phoned Capstone re letter recieved. Was told a decision is in the process of being made. If we have not heard anything by fri 30th call back.

29/10 Recieved letter asking to fill in income expense form and a decleration and provide pay slips. Done all this and returned registered delivery, which was signed for and of which a copy i have printed.

6/11 letter recieved asking for docs to be returned! Phoned and told them i had, and they had been signed for.

11/11 letter recieved court proceedings issued.

12/11 letter recieved informing of hearing date for 19/12

12/11 court defence forms recieved.

 

So it looks like we are off to court. Can you help with the forms Ellen?

Reading through some other links and you say Q27 is most important. HELP!!!!!

[kdsplit]

As an after thought to the above post, we made a full mortgage payment on the 1/11/08 to capstone as normal,and intend to again on the 1/12/08, until they decide if we can go to interest only for a while. We are stretching ourselves budget wise but thought it would look better if we tried.

[Ell-enn]

Hi there, I can certainly help you with the forms. What date is the hearing?

 

Kind Regards

 

Ell-enn

[kdsplit]

Hi Ell-enn

Thanks for that!

The hearing date is Fri 19th Dec.

[kdsplit]

Do you think it may be an idea to write to Capstone/solicitors again offering an amount towards the arrears? In my previous letter sent to them i asked to consider capitalizing the arrears to the mortgage but heard nothing back as yet.

We are paying the full amount each month again as our income has gone up and business is getting slowly better again, but i think we would only be able to offer around 30-40 pounds a month at the moment, possibly more some months depending on wages pulled from the business.

Or should we make these payments direct anyway?

We are still waiting to hear if they will change the mortgage to interest only for a while- which will give us more available funds to put towards the arrears.

Its all a bit confusing at the moment!

x

[Ell-enn]

OK, we've got plenty of time to return the forms (by 5th December). You might get a response to your letter before then - of you don't then that will add weight to your defence. As it stands you have a good defence anyway in that you have asked for help, offered solutions and due to their appalling internal communications have ended up with court papers before they have addressed your request - not going to look good in front of a judge!

 

In the meantime you need to gather together all correspondence from them and also copies of letters you sent (with proof of delivery where possible) and put them into date order in case we need them for your defence.

 

Take a photocopy of the financial questionnaire pages from the N11M and "practise" on them to get your figures right before we make a start on the final copy of the forms. Hopefully we can get the hearing cancelled and you won't need to submit them.

 

Try not to worry too much, there's no way they'd get possession at the first time of asking.

 

Ell-enn

[midge61]

Hi

 

I am In a fight with Capstone at the moment because they claim I am in arrears but am not!

 

I have just had a statement of arrears off them and have found several mistakes including them charging me for failed dd's when infact they did not call the dd's.

 

It would be wise to get a statement of account from them and double check all payments made to them against your records.

 

Good luck

[kdsplit]

Thanks Ell-enn,

Have got all letters and reciepts etc, am not too worried at this point, like you said they responded with hearing date before replying to any of my letters.

its nice to know there are people out there that will help others in times of stress and need though, as i think i will need it!!!!

[Ell-enn]

No problem, if you don't hear anything by the end of next week - we'll send them a nice "reminder" letter complete with copies of your requests for help and a reference to the Civil Justice Council Mortgage Arrears Protocol recommendations which they are supposed to adhere to

 

Feel free to shout for help (or have a rant) whenever you need to

 

Ell-enn

[kdsplit]

Midge61 thanks for the advice!

Dont worry ive gone through the statement and there are no charges like that on it. There are just the missed payments june to oct, a £100 litigation fee and £200 in arrears management fees!!

I got a letter dated 4th nov and they had added nov's payment to the arrears amount even though i had paid it!!!!

 

Ellen are they allowed to add the fees and interest to the arrears amount? i thought i remember reading somewhere they weren't???? I maybe wrong!

[Ell-enn]

Fees should not be added to arrears amount, they are added to the outstanding mortgage amount. We would alos point this out in court - lenders have a habit of doing that to make the arrears look worse than they actually are!