Can I avoid repossession?

[OhPunky!]

Hi! I'm new to the forum and I could do with some advice.

 

I have a mortgage with GMAC which has just been taken over by Webb Resolutions (on the same terms - or so I am led to believe).

 

My situation is this. I becme unemployed in January 09 and I couldn't keep up my repayments so using savings I paid half the contracted amount. I now have arrears circa £6k. I have just got a new job (not as much money as the last one - but I'm not complaining). I've done an income and expenditure and having come out of a fixed rate my contracted monthly is down to an amount I can afford. However this is assuming my rate doesn't shoot up in the future. However this only leaves me with about £65 per month to pay back on the arrears. I've sent the income and expenditure off to Webb and given that they charge around £50 a month just in charges on the arrers, I don't think they're gonna go of for it.

 

I guess then the next step will be for them to start repossesion proceedings. I just wonder whether if I made the same proposal to a Court if I would get anywhere? Might I be able to get the repossession order suspended or something to that effect? In the long term staying in the house is likely going to be hard, but for the next 12 months or so I need the stablity of staying here. My wife is in Kidney faiture and about to go on dyalysis and she is just recovering from the relapse of an acute mental illness. So to sum up do you think the a Judge would look favourable on the following

 

Contracted montly payment plus a token £65 towards arrears. Based on the fact that my wife needs some stability for the next 12 months at least to settle into her diayysis and recover from her mental illness. I'm hoping that in the meantime I can look at selling up and also getting a housing association house.

 

Any advice would be valued. I've been trying the CAB all week but have yet to get through - I will keep trying but some advice in the meantime will put my mind at ease.

 

Thank you in advance.

Edited August 21, 2009 by OhPunky!
Spelling

[Ell-enn]

Hi there, you've done the right thing in writing to the lender explaining your position and giving your income and expenditure. Did you send by recorded delivery? also, did you keep a copy of what you sent? You will need this is they do issue a repossession claim.

 

Given that you now have a new job and can afford to pay something towards the arrears you won't lose your home. We will help you with a defence should they proceed with a claim.

 

You say the arrears are £6k - does this include the monthly £50 charges? if so then the true arrears will be less. The charges should be added to the outstanding mortgage amount and cannot be included in the arrears, plus anything you pay towards the arrears should reduce the amount and not be swallowed up by the charges. You can only be in arrears with your monthly payment, not charges.

 

Ell-enn

[OhPunky!]

Hi! Thnak you so much for the reply. I've been dealing with this on my own for quite a while so it's so amazing to hear someone say I might not loose my home.

 

Ididn't send the income/expenditure by recorded, but given that I sent it a week ago without response - I'll send it again by recorded by way of a follow up.

 

The charges are included in the arrears so that does make me optimistic. I will update this thread when I get a reply from the Webb. BTW does anyone know much about Webb - can't see much on the internet and their website is parked.

 

Thnaks again!

[Ell-enn]

Yes, do send the letter again by recorded and print off the signature receipt from the royalmail website - keep it with the copy letter, as you may need it later. Did you refer to the Civil Justice Council Mortgage Arrears Protocols in your letter? If not, include the following as your last paragraphs in the one you send by recorded.

"I am sure you are aware of the Civil Justice Council Consultation Paper – Mortgage Arrears Protocol whereby lenders are required to give positive assistance to customers who are in financial difficulties and who are asking for help. One of the recommended options within the Protocols is the capitalisation of arrears.

 

I trust you will understand my position in this and look forward to your positive response"

 

Ell

[jansus]

Ell-enn is giving you good advice. If the arrears are capatalised along with the charges then you should be able to move forward. there are also posters here who have complained to the FOS about the high level of charges and soem have had then refunded. some lenders are under scrutiny for these automatic charges.

 

Keep in communication with your lender and let us know what reaction you get

[OhPunky!]

Will definately write to my lender again and will keep this thread updated. Just one question - if the Mortgage company dosn't agree to capitalisation of the arrears does a Judge have the power to make them do it?

 

Thank you for the advice!

[jansus]

Pre-Action Protocol for Possession Claims based on Mortgage or Home Purchase Plan Arrears in Respect of Residential Property - Ministry of Justice

 

 

I dont think at the present time the courts have the power to force a lender to change the terms of the mortgage - but if your case went to court the lender would have to explain why they have declined that option.

[OhPunky!]

Thanks for the link - it's certainly going to help when I next talk to the Mortgage company - up until now the bloke I talked to made it seem that a Court would basically just do what ever the mortgage company asked a Judge.

 

I've got another queston. Basically my brother has been offered a job abroad on a mimimum 2 year contract. He wants to rent his house out and is willing to let my family live there and pay just enough to cover his mortgage - sensible chap got his mortage 15 years ago and it's half mine! I'd also be getting a house at 2/3 the market rental value. Also cos it would be pretty good having a landlord I know well!

 

Here's my question basically I would love to give my house back to the lender but I know that they would end up selling the house for much less than it's worth. Would I be better to sell myself - even though at some point I may have an overlap with the rental house? If I stopped paying my mortgage would the lender hold off possession if it was on the market. I feel pretty optimist I could sell it fairly quickly - a house in my street would sold within 2 weeks of being on the market recently. I'd still get less that the mortgage value but I would still owe less.

 

Ideally I am anxious about loosing the reassurance of having my own home. What really worries me is that whilst I can afford the contracted a the payments at the moment if the rate ever went up even by £100 I would be unable to afford it.

 

Any opinions would be good. Also if I still owed a sum after the sale would the morgage company come to an arrangement on repayment? I don't have many possesions worth anything and as I've aready mentioned my disposable income is very low. I read somewhere they could put an arresting order on my salary.

 

Sorry to ramble but any advice or opinion would be som very welcome.

[jansus]

you have to remember this is all personal opinion - but if at all possible try and sell rather than hand the keys over. There are lots of horror stories about the costs incurred by the lenders and the price the properties sold for.If you are in negative equity you will have to get permission for the sale to go through - but if they refuse permission and then consequently sell the house for less you should be able to challenge that in court.

 

As for the balance they can in fact chase you for the balance owing for 12 years - but they can not get blood out of a stone and quite often would come to an agreement about the debt.

 

Have a look on this site in the money /arrears section for what happens if you hand the keys back.

 

www.direct.gov.uk

 

If at all possible I would at least pay the normal MP at the moment and hopefully the court will look on that favourably.

 

At the moment you need to try and minimise the loss and the option of you renting seems quite a good idea - and as you say you will not have the added pressure of all the worry about what will happen if the rates go up.

 

Or you stay there and hope that house prices do iincrease again?

 

As you can see it is all a matter of opinion unfortunately

[jansus]

Mortgage arrears or payment difficulties : Directgov - Money, tax and benefits

 

 

see link at bottom of this section

[GamekeeperToPoacher]

Hi Ohpunky,

 

I would recommend that you DO NOT SPEAK to them.

 

Always put everything in writing as then you have a paper trail if you need it and, as you have already said, the guy at the mortgage co already says that the court will do as they say.

 

Save yourself the grief and write only

 

GK

[OhPunky!]

Hi guys! Many thanks for the advice. I am genuinely overwhelmed by all the support - I've been running through all this in my head for so long!

 

I will definately put everything in writing from here on and make sure I sent it recorded.

 

I'm going to get a couple of estate agents over to get a valuation and some opinions on the local market and then put this to the Mortgage company.

 

Not sure if anyone know much about the Company that now has my Mortgage. It's called Webb Resolutons. My mortgage was with GMAC but I believe they've sold on a parcel of their 'toxic' debts. Someone I spoke to said they might have even bought my mortgage for 50 pence in the pound!!!

[OhPunky!]

Hi. Haven't posted here in a while but no my circumstances have changed - I need some more advice. Basically I'm at point where I've decided that trying to keep hold of the house is just not worth it. My credit status is wrecked, I'm going to be at retirement age in 6 yearas, my job is a tempory contract anyway and the term of my interest free Morgage ends in 4 years. Basically I've found a rental house on favourable terms. What I really need is some good practical advice on Voluntary Surrender of the house to the mortgage company. I'm in -tive equity and I'm also going down the Bankrupcy route. Any advice would be valued - I'm a bit concerned because I've heard that if you sign the wrong form from the Mortgage company you can become liable for the shortfall even in Bankrupcy.

 

Thnaks in advance.

Edited October 28, 2009 by OhPunky!
typo

[jansus]

Hi, sorry that you have had to make this decision but hopefully in the long run it should ease your stressful situation.

 

I am afraid I know nothing about BR but how can they get the shortfall if you have very little income and no asset?. I would try the directgov website as I think they have a link to info on BR.

 

Were you "sold" the morgtage in the knowledge that it would go past your retirement date? What was in palce for you to ensure you could continue payments at that time?

 

Is your rental house all definitely sorted , are they fully aware of your situation?

 

I will see if I can find a link about handing the keys over

[jansus]

What happens when you become bankrupt? : Directgov - Money, tax and benefits

[nuke em]

Hi guys! Many thanks for the advice. I am genuinely overwhelmed by all the support - I've been running through all this in my head for so long!

 

I will definately put everything in writing from here on and make sure I sent it recorded.

 

I'm going to get a couple of estate agents over to get a valuation and some opinions on the local market and then put this to the Mortgage company.

 

Not sure if anyone know much about the Company that now has my Mortgage. It's called Webb Resolutons. My mortgage was with GMAC but I believe they've sold on a parcel of their 'toxic' debts. Someone I spoke to said they might have even bought my mortgage for 50 pence in the pound!!!

 

Some things to consider..........

 

1. Your "Mortgage" document is fraud in the factum. They, the Mortgage Co never gave you anything of value, they took your signiture and montized it and basically lent you your own money - you were not given full disclosure of that , they did not provide anything of value therefore there was not equal consideration
   
2. Lawful Terms and Conditions, Which basicaly means that there should be no mischief in the proposed agrrement! - which there was
   

Also i would chalange whether the orig documentation even exists! in light of the recent MERS case , chances are the the original "note" has gone missing.... no note no repos!

[nuke em]

Hi. Haven't posted here in a while but no my circumstances have changed - I need some more advice. Basically I'm at point where I've decided that trying to keep hold of the house is just not worth it. My credit status is wrecked, I'm going to be at retirement age in 6 yearas, my job is a tempory contract anyway and the term of my interest free Morgage ends in 4 years. Basically I've found a rental house on favourable terms. What I really need is some good practical advice on Voluntary Surrender of the house to the mortgage company. I'm in -tive equity and I'm also going down the Bankrupcy route. Any advice would be valued - I'm a bit concerned because I've heard that if you sign the wrong form from the Mortgage company you can become liable for the shortfall even in Bankrupcy.

 

Thnaks in advance.

 

 

This is what i would do in your circumstance

 

• Question the validity of your alleged mortage contract NOW!
  
• do not consent to anything they send you
  
• do not speak to them on the phone
  
• stay in your property payment free for as long as you can ( why do you want to rent another propertry that will cost you?
  
• dont go BR
  
• Investigate why your mortage is/was a fraud, and that no one has "lent" you anything of value, therefore why should you ever leave the property?
  

Radical stuff ? yes maybe but in the next year as more people discover the truth about mortgages & Loans..it will be the norm!

 

the time of the Bankster is OVER!!

 

 

also is there anyone living in your property (apart from you & not a paying lodger/tenant) that is NOT on your "mortgage document" ? like a wife/husband/partner etc ?

[OhPunky!]

Wow! Thanks for the advice. It is pretty overwhelming stuff. Does it mean that the Mortgage company would have to remove there interest in the house completely?

 

The reason that I'm going off to a rented house is that a family friend is lettng me rent it below market value and is offering me an assured tenancy for 2 years and he is also comfrtable with me being a BR. The reason for BR is that in additon to the mortgage I have 50k of unsecured debt. Also my daughter has moved back in with my wife and I as she has gone back to University.

 

How do I go about challenging the validity of my mortgage contract? Do I do a SAR?

 

Also do you have any links or sources of info that tell me more about the basis for challenging the Mortgage company?

 

If there is any chance I could stay in the house - it would be like a lottery win!

Edited October 29, 2009 by OhPunky!

[nuke em]

Questions....

 

is your wife named on the alleged mortgage?

is your daughter under the age of 18 ?

 

i need more details on the alleged mortrgage

 

who is it with ?

how long ago did you take it out?

how many months are you in arrears?

Have they started repo proceedings yet?

do you have any equity in it?

[OhPunky!]

is your wife named on the alleged mortgage? Yes

is your daughter under the age of 18 ? No

 

i need more details on the alleged mortrgage

 

who is it with ? I took the mortgage out with GMAC RFC but it has been sold on to Webb Resolutions (first I learnt of this was in a letter from Webb in June).

 

how long ago did you take it out? 2007

 

how many months are you in arrears? 4 whole months missed but before that 6 months paid at half the 'contracted' amount

 

Have they started repo proceedings yet? No

 

do you have any equity in it? No - even if the house sold at market value (i.e. in the same range as two other house's in my street that sold in August) then I would still have a shortfall of circa 15k (factoring charges they've added).

Edited October 30, 2009 by OhPunky!
Typo

[OhPunky!]

Update. Basically just seen an Officer from my local council to talk about Mortgage rescue. Essentially the only scheme I would be eligable for is the Mortage to Rent - however they won't consider me unless I have the 15 day notice from the Lender of repossession! Also they only pay 97% of the market value as I understand it - so it would leave a shortfall.

 

Also my lender rang today to chase up (naughty of me but I didn't say much or commit to anything). I told him about this (hoping he might repossess me!) and he told me that the lender can access an agency who will access my circumstances and then fast track my claim. Bascially my understanding was of what I was told is that the Lender could initiate this process - which threw me because I thought only the govt/council could do so. The rub is that the lender wants to send me a form to sign so that he can get things underway - slighty worried about signing anything from the lender.

 

Any opinions anyone?