Need mortgage advice - lost job..?

[taperjeangirl]

Hi, I would appreciate advice on behalf of my dad who recently lost his job. He is 60 now and finding it more a bit difficult to get another job.

 

His mortage co. agreed to accepting interest only payments for a very limited time (he has no money available to pay his mortgage at all). Now they are demanding full payment. He can dispute this in writing to them, but is unsure how to go about it / what his rights are.

 

He has lived in the house since 1994 and there is only 10k left owing. He wants them to accept a longer period of interest only payments - poss until 2012/2013. He then wants to sell the house as soon as the market (hopefully) picks up. Please help!

[42man]

Hi TJG....I must presume he has no redundancy cover ?

[taperjeangirl]

No he didn't receive any redundancy - he worked for a really small company (only 3 of them) and the other two got together and put him out of a job.. I wish I could help him but I've already got a suspended possession order on my flat....

[jansus]

Have you seen the mortgage protocol which in force for the lenders

? If not I will post you a link.

 

Who is the lender?

 

I would say that a court would support his suggestion. If he intends to sell the house if he does not get employment then his proposal seems very sensible.

 

I would suggest a very strong letter quoting the protocol rules outlining his proposals. send recorded and remember it is the courts who have any final decisions not the lender. they can not alter the terms of the mortage but they can stop eviction.

 

Are there any arrears charges being added?

 

I will help with a letter at the weekend if you want?

 

( I am an ex building society employee by the way)

[taperjeangirl]

jansus thank you so much for your reply. I am terrified his mortgage co. take him to court - as Accord did to me. They tried their best to take my home from me, thankfully I 'escaped' with a suspended order but I'm scared his mortgage company will take him to court. If they do he has no defense - he can't afford full payments.

 

His co. is Birmingham Midshires and they are not prepared to offer him reduced payments or interest only (which he would prefer).

 

Any advice would be so helpful and amazingly appreciated! Thank you.

[jansus]

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

 

 

this is the document we can refer to .

 

What I suggest is that he completes and income and expenditure sheet ( I will post and example later) and then we do an initial letter stating his financial position and asking for help under the guidelines form the ministry of justice. Keep it clear and concise and keep everything in writing by recorded letters so you have a trail to show the court if necessary.

 

Even if it went to court if he can afford interest only payments and the arrears stabalise then the courts should be on his side.

[jansus]

Oh yes and can you make sure that any letters they are sending do not include any arrears charges in the amount of the arrears.

 

If he is not sure we will ask for a breakdown of the total arrears and the total charges in the letter.

 

 

Will he be getting any help from the DWP with the mortgage interest?

 

This is a good sire to check he is not missing out on any benefits

 

www.entitledto.com

[jansus]

Money, tax and benefits : Directgov

 

also this is a good site to check what you are entitled to and also covers help on arrears.

[jansus]

To BM&M BS

 

Reference account number xxxx

 

 

Date XXX

 

I refer to the above mortgage account and I am writing to inform you of my financial situation. I have been made redundant from my employment and in the current climate I am finding it very difficult to find a job. My income is therefore limited which is why I have been struggling to pay my mortgage.

 

I am therefore identifying my self to you as a customer needing your assistance in coming to a long term agreement about some help with my mortgage.

 

I am sure you are fully aware of the mortgage arrears protocol document issued by the Ministry of Justice and I am therefore asking for the following assistance. As you can see from the attached Income and expenditure sheet I can afford the interest only payments. I would like to to consider you changing my mortgage to interest only payments for the forseeable future and if possible capatalising the arrears in this calculation.As you are aware my mortgage in relation to the property value is small so you have very adequate security.It will then be my intention to try and hold out until house prices recover and sell the house - or of course if I manage to secure employment change back to a capital and interest mortgage.

 

If as you have indicated to me you are unable or unwilling to consider my request please reply in writing explaining your reasons why and suggest any alternatives. Please note I wish to continue any negotiations in writing and not by telephone. In this way we can both be clear about what the situation is and I will have apoint of contact for any assistance I may need.

 

 

 

 

 

 

*** we can add a bit about arrears charges / if necessary

Edited October 3, 2009 by jansus

[taperjeangirl]

Jansus thank you so much for your help, he will send in the letter as you advised recorded delivery today. Fingers crossed and thank you again!

[jansus]

No problem - let me know what the reply as and we will continue as necessary.

 

Try and ask him to resist speaking to them on the phone if at all possible- or if they do call it is important to keep notes of dates /times and names of who he speaks to plus what is said.

 

He should also start a well indexed file of wat has happened so far .

 

Later on we will make sure he has a full break down of the arrears and charges as well.