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Hi All,


I have a mortgage with Abbey. I've got huge arrears in excess of £70,000, as Abbey was unable to take repossession proceedings because of a issue with registering their charge with the land registry. So the arrears were built over a period of time.


Nonetheless, after several hearings the court granted me a suspended possession order to sell the house within six months. It is now the fifth month and I have not been able to sell the house. In fact, because of a sharp fall in property prices my house is now worth £170,000 and I have a mortgage of £225,000 and arrears of £70,000. Total owing to Abbey is £295,000.


There is potentially a shortfall of a £120,000. I had lost my estate agency job and I am claiming JSA. So my prospects to repay the shortfall is non-existent and if they repossess I will claim bankruptcy.


I plan to do the following, (please comment on this):


1). Inform the lender that I am in negative equity (with evidence)

2). Inform them that the prospect of enforcing the shortfall is non-existent

3). Explain that I will be able to resume mortgage payments if I rent out part of the house

4). Explain I have retrained and am actively seeking employment

5). Ask them to allow me to make payments on the original mortgage amount at their variable rate.


Please can you comment on the above to identify any problems, merits or fallacies.



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Ok you are completely underwater in your house, loan wise with no chance of the massive inflation required anytime soon making your property worth anywhere near what you owe, so

I would do this

Write as many letters as you can saying all sort of things, but with the aim of fending of the inevitable reposession as long as you can, Don’t pay the mortgage , live there for free, rent out a room if you want to generate income. As it seems you will end up bankcrupt what does it matter ?

Fight the repo process all you can, when eventually you get to court, ask the judge to give you 56 days before possession (buying more time. Then some lenders take upto a year to execute the warrant of eviction, even ask for a stay on the warrant, all to get your more time. All the time you are living there free and building up CASH reserves ( emphasis on CASH) via your job/income generation.

Just before the point of actual eviction, get three “good” Valuations on your property. ( you may need these later on)

Move out into your then already pre- found rental property, pay cash upfront for the first 6 months if your credit is bad

Keep track of your property as the lender is trying to sell it, have a friend pose as a buyer, to see what reaction they get etc. You are trying to build a case for them selling it below market value and failing in there duty of care to a borrower ( if that is in fact what they eventually do, ie sell it too cheap)


If/When they get to the shortfall amount and they (finally, after much arguing on your part, via your defence) obtain a judgement against you for whatever the final figure is, make sure that your fiances are such that you offer them & the Judge accepts that is all you can afford , say £10 per week.

Pay this for a year or so , if you can in the meantime save ( or get from friends/family) say 5% of the judgement amount , then at that point offer it to them in F&F settlement, if they accept you have saved the need to go bankcrupt.


If you don’t want to pay anything or want a clean slate then at that point declare BR

[sIGPIC][/sIGPIC]....Please don't bother my master 'cos my sister & I might bite you...


I DO NOT offer legal advice


"I just say what I say because everyone is entitled to my opinion!"

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Hi and welcome to the site,

I see this is your first post.


First of all please tell us what you would ultimately like to do so you can get some help from the Ellen and other experts on this.


Would you like to remain in the property, if so are you able to maintain the monthly payments going forward, or;


Would you just like to get rid of the property.


As Abbey is a high street lender and not as ruthless as the sub prime lenders, I would think it may be worth asking them to capitalize the arrears. I.e adding them to the balance of the mortgage. this will cost you more in the long run as you will pay interest on that too, but could save you from repossession.

house prices are going down now but indeed they will stabilise or appreciate at some point in the future.


Have they made any attempt to help you with your situation at all. I think high street lenders signed up to some code to avoid repossessions as much as possible.


Have you spoken to them or written to them at all since the last hearing. I think you should request in writing that they capitalize the arrears and then rent out part of the house and use that to pay the mortgage.

Someone on here can help you with a letter.

Your monthly payment must be quite substantial. how many years have you got left on the mortgage?


Dont worry, we are not here to judge on this forum, but to help you with whatever you decide to do.

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Thanks so much for the replies.


I do want to stay in the house and if Abbey allow me to pay on their SVR at 4.24% then I will be able to pay the mortgage by taking in two lodgers at the house as the rental market here is very active.


I have asked Abbey, but once they transferred the matter to their solicitors they do not speak to me directly. In Nov 2008 a suspension order was issued on the basis that try to sell the house within six months and I was ordered to provide monthly progress reports about the sale to Abbey's solicitors.


I was thinking of informing their solicitors about the huge negative equity situation, the fact that they will not be able to enforce the shortfall (because of my finances) and I will be able to maintain monthly payments if I take in two lodgers.


But my concern is that I tell them about the negative equity situation, would they repossess the property quicker knowing that the property may fall further?

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