Abbey Threat of Repossession

[odezi]

I have a mortgage with Abbey and unfortunately like many others fell into arrears after losing my job. I tried for many months to keep up, but fell just over 3 months behind. In January the DWP agreed to pay part of the interest, but the first payment was going to be made in March. I kept Abbey informed of everything happening, but to my surprise I got a letter from Evershed that they were going to apply for repossession unless a satisfactory arrangement was reached. We reached a satisfactory arrangement and I agreed to pay extra to meet the difference, but I received a letter from Evershed that were still planning to go ahead with the repossession application and once obtained will be suspended and if I fall behind again then they will apply the order.

 

Are they allowed to do this even after agreeing to a repayment? It's making me very uneasy that they are still making the application despite the agreement.

Edited April 8, 2009 by odezi

[Ell-enn]

Hi there, it's certainly against the mortgage arrears pre-action protocols issued by the government! You need to write to Abbey (copy Eversheds) reminding them of this. They are also supposed to put on hold any action if you are awaiting payment confirmation from the DWP.

 

If you need help with the letter let me know and I'll draft one for you.

 

Kind Regards

 

Ell-enn

[odezi]

Hi Ell-enn,

 

Many thanks for the reply. I would not know what to put in the letter so your assistance will be much appreciated.

 

Many thanks

[Ell-enn]

OK, I'll post something on here over the weekend

[odezi]

OK, I'll post something on here over the weekend

 

Thank you so very much.

 

Thanks

[elizabeth1]

This might help you (I copied this from the thread I have linked here)

 

http://www.consumeractiongroup.co.uk/forum/mortgages-secured-loans/175426-mortgage-securitisation-preferred-29.html#post2097269

 

Mortgage Code

 

(section 8 would appear to be applicable)

 

MCOB (FSA rules)

 

MCOB 13 Arrears & Repossession

Council of Mortgage Lenders

 

1)CML statement of practice - Handling of arrears and possessions

2)Industry guidance on arrears and possessions to help lenders comply with MCOB 13 and TCF principles

[odezi]

Elizabeth, many thanks for the links. The documents were very useful

[odezi]

Hi all

 

I have drafted a reply to Eversheds which I intend to copy to Abbey. Please let me have your opinions

 

Dear Sir

 

I write in reply to your letters dated 4th March, 19th March and 9th April.

 

Your letter dated 9th April states that the current monthly instalment is £635.14, but in the various correspondence from Abbey, the monthly amount stated was £617.72, after the capitalisation of £980.06. As this is a fixed rate mortgage I would some explanation as to why there has been an increase. You letter further states that my proposed arrangement was the monthly instalment plus £100. This is not the case. My email dated 18th March 2009 clearly states that the proposal was to make a further £100 in addition to the monthly contribution from DWP, a proposal you were happy to accept on behalf of your client.

 

Having reviewed Council of Mortgage Lenders guidance on dealing with customers in arrears, I strongly feel Eversheds and Abbey have not acted in accordance with the guidance. The guidance lists several actions to be taken before possession proceedings can be issued. One of this is that a lender should not issue possession proceedings where the lender is aware of the customer’s application for state aid towards the mortgage. Abbey were made aware of the application in January 2009. Further, Abbey informed me on 23rd February 2009 that they received a letter from the Benefits Agency that direct payments would be made to my mortgage. This was four weeks before your letter to inform me that you were going to commence possession proceedings. In view of this I would ask that this action be ceased immediately, including your proposed action of suspending this order for 6 months as the action should not have been brought in the first place.

 

As stated in my email to you, I fully intend to keep to the arrangement of paying the additional amount, but under an arrangement directly with Abbey. In addition to this I would like to request that Abbey consider my request to change the date my mortgage is paid from 19th of each month to the 31st of each month. This is to bring it in line with when my benefit is paid. I would further ask that the Abbey consider payment for the first instalment, which is due on 19th April, be made on 23rd April 2009. This is when my next allowance is due to be paid. I will also make arrangements for a direct debit of £100 for the same period every month.

Edited April 16, 2009 by odezi