Help! Have had a court order seeking posession over a secured loan.

[LibertyNow1`]

I have been referred to this forum by a friend but to be honest it is overwhelming.

I wonder if anyone can help me specifically.

 

I am self employed and took out a loan for £50k secured against my house in August 2007 as that is the year anyone who is self employed will tell you the recession really started.

I have fallen behind by four months as it has bitten harder. The repayments are £500 a month. I managed to pay £500 this month but they say it will not prevent the court date of 3rd July for reposession of my house.

 

What should I do?

 

Obviously due to the recession my income has fallen dramatically and can hardly afford the existing payments and am worried if I will be in the future as I struggle to get back on my feet and just keep my business going and they are demanding I pay everything off by the court date.

 

I have been told that CCA stuff can be done on debts prior to 2007 april but this is subsequent so what can I do?

 

I am not the brightest person on this sort of thing as I have never had debt problems before so please keep it simple!

Edited June 11, 2009 by LibertyNow1`

[squidward]

Hi LibertyNow1.

 

Welcome to the forum your in good company here but you may find this may be better posted in the Mortgages and Secured Loans Forum to be honest.

 

I was in a similar situation a few years back and what I do know is don't ignore the loan company (2nd Charge) and try and come to some arrangement with them.

 

As this is secured it is a priority debt along with your Mortgage Gas Electricity and water council tax TV license food etc etc.

 

Any money you have left you can distribute between your remaining creditors (loan and credit card companies) on a pro rata basis.

 

If you have Credit cards and loans you could request a copy of the CCA to find out if they are enforceable if they are unenforceable you can stop paying them while the accounts in dispute.

 

If you end up going to court then you must attend I thing as long as you can cover the monthly payment plus a bit to cover the arrears I think you will be OK I don't think the courts like granting repossession orders in this economy.

 

I hope this helps

 

Squidward

 

P.S I am self employed to so I can sympathise with you

[LibertyNow1`]

thank you Squidward.

I should have explained I have tried to come to an arrangement but they say I must pay a minimum of £200 each month on top of the £500 and they will still go to court for an order over the property just in case I default. The person at the call centre was very intimidating.

My mortgage company on the other hand (Birmingham Midshires) has been charming and say I don't have to pay a bean in arrears until october when they will review to see if I can afford a little bit.

[squidward]

First National Bank got a suspended repossession order on my last house albeit this was a few years a go. I went to court which I think helped.

 

 

I would post in the Mortgage and Secured loan section as there will be some more experienced members who have the specific knowledge to help.

 

Are there any benefits you could claim which would help ?

 

Squid ward

 

Just a thought if you are on a repayment mortgage (Midshires) have you asked if you can change to Interest only ?

 

May save you a few pounds!

 

Squidward

[LibertyNow1`]

Problem is with benefits is they are almost impossible to get if you are self employed. If you aren't seeking work you can't get them; and I don't want to let my business go after 25 years doing it.

It is distressing, as the very people who have caused people hardship by ridiculous bank charges and stuff (paid £6k in the last two years) are the very people who the government help whereas small businesses are going to the wall. There is no help for small business; its all gordon brown myths.

[squidward]

I know where your coming from - What about reclaiming the bank charges and I believe you could claim an extra 8% on top!

[LibertyNow1`]

Thanks. I did claim some back a couple of years ago but thought it was on hold for now?

[42man]

Hi Liberty1, i'll move your thread to the reposession forum, where hopefully you will get some more help/advice/comment...

 

Did you get the mortgage through a broker by any chance ? Any PPI added ? Do you still have your agreement ?