Repossession Looming: Help

gee_gee · November 18, 2009

Hi, I've been reading the site scouting for guidance on how to approach my current situation and hope I can also benefit from the great assistance people have received.

I'm single and have been out of work due to restructuring since July. Since then I have been making part payments on my mortgage (Int only).
My current arrears stand at £5598.28
The visit from the mortage companies debt advisor (who cost me £100) was she would try and see if my interest rate could be reduced from 6.29% to the variable rate to reduce payments. I also suggested being given permission to rent the place out as another alternative. Both of these avenues where declined by the lender so needless to say her efforts came to nothing. I am still to see a copy of the report that was submitted.
I now have a court date in a few weeks time and was hoping to get advice on how i can pursue both the above lines to help me keep my house. I've had estate agents come to give rental valuations with 3 stating i should achieve between £750-£800. My interest payments are currently £1015. I would then definitely be able to add to cover the difference.
The alternative would be to look to get a review on my interest rate and get this changed to the variable rate which would bring my payments well within reach even with the help i'm receiving from family. I think payment would come to approx £500.
Is there a way of me arguing that the 6.29% is unfair based in the current market that we are in. I'm still tied to this rate for another 2 years (ouch!) which hurts.
I've also taken a look at the lenders site and can't really find info that i think would be useful to me.

I did however manage to rent out my second room (behind the lenders back) which has obviously been giving me the little income that I use to make part payments.

I would really appreciate any assistance on how i can prepare my defense to avoid repossession. A I&E statement has previously been sent to the lender and this had no income showing on it.

Not too sure how to best approach this, i really don't want to let the house go..cause Lord knows i worked hard for it.

flower2 · November 18, 2009

Been in a similar situation recently.

I refused to speak to them on the phone & told them when they did phone to put everything in writing to me. Noted date, time & name.

All my letters sent recorded delivery.

Made sure I got the name of anyone contacting me.

Have you asked for a copy of the report in writing? if not do so & send recorded delivery.

When I eventually ended up in court I took all copies of letters, made a spread sheet with dates, who I spoke to, dates they had been recieved etc.

The judge ordered them to send a witness statement to me within 21days & adjourned the hearing for 2months with costs to them.

Not a total win but felt good at the time. Still have to go back, but now GMAS have being fined by the FSA who knows.

Please ask if you think I can be of any further help.

**Ell-enn** · November 18, 2009

Hi there, have you considered the mortgage rescue scheme? Mortgage Rescue Scheme - Housing - Communities and Local Government

gee_gee · November 18, 2009

Hi Ell-enn,

Unfortunately not ligible for any of the rescue schemes on offer. Been to CAB and seen others to help with this. It would have been a life line but hence why asking about whether the interest reduction route or getting permission to rent the place would be advisable in this case.

gee_gee · November 18, 2009

Hi Flower2,

Will definitely make sure all correspondence from now is recorded delivery and request for the report as well.

I've kept track of people I've talked to previously but probably not as precise as I should be. Will definitely put things on a spreadsheet for that. Cheers for that idea.

Glad to see you got a bit more time and with the FSA fining them I'm sure you headed for victory.

on*the*case · November 18, 2009

gee-gee

Are you 'signing on' ? There is help with the interest payment after 12/13 weeks for those on job seekers allowance.

You do NOT need the permission of the lender to have lodgers:) how many can you get?

gee_gee · November 18, 2009

gee-gee

Are you 'signing on' ? There is help with the interest payment after 12/13 weeks for those on job seekers allowance.

You do NOT need the permission of the lender to have lodgers:) how many can you get?

can't sign on - not entitled to benefits despite the fact i've lived here all my adult life.

Great news that I don't need the permission of the lender to have a lodger. Unfortunately its only a two bed - so can only have one:|. Do you know if I would need permission to rent the whole place out or would i still be fine.

on*the*case · November 18, 2009

You probably will need permission to let the property on a tenancy, and if permission is given, you will be charged a fee and probably extra interest to reflect 'the added risk' :-(

Regarding Job seekers allowance, there are two types dependent on your NI position. Go and see them make an application, if they turn you down, appeal.

Lodgers, you have two bedrooms, let them both and sleep on the sofa.

Regarding your defence to the possession proceedings; check the documents, have they been properly served, is everything there, have they included charges in the arrears?

gee_gee · November 18, 2009

Thanks,

Just looked into it and MX has a fee of £185 to change it to tenancy. Not sure they would allow me though. As you say the alternative is to kip on couch.

I think I'll head off to the local DSS office tomorrow and really get clarity on the NI position.

I've checked all documents and they seem to be all in order the arrears statement doesn't include any charges and all the other legal fees which leaves me to believe it's all been added to the balance of the mortgage. They haven't however included a copy of my mortgage contract or report from the advisor who paid me a visit against my wishes (and still cost me £100 somewhere).

Is there somewhere I can check to see if all the documents have been properly served?

on*the*case · November 18, 2009

CPR (Civil Procedure Rules) 2009 I think Part 55 is Possession Proceedings.

See also FSA Guidelines for dealing with arrears, Law Society same.

Search the forums here and in 'Mortgages & Secured loans' for previous histories.

gee_gee · November 18, 2009

Thanks for that,

I'll have a read of that and also look at the other areas you've recommended.

flower2 · November 20, 2009

Have you written to them asking to pay interst only & for them to freeze charges? if not do so & send recorded delivery.

Do not speak to them on the phone, just ask them to send what ever they have to say in writing. Get name, postion, date & time, Keep these details.

Once you recieve a letter back saying they can not freeze the charges (which I am sure you will) contact the FOS & they will take the case up for you if you explain your situation.

More info for you to take to court.

Have you rung the court & asked if there is any help? There usually is & means you do not have to attend on your own & usually they will represent you.

gee_gee · November 22, 2009

Flower2,

Thanks for the info. I hadn't written to request charges be frozen so will do that straight away and getting the FOS involved sounds like a very good idea.

My lenders solicitors wrote to the local council (apparently a new procedure where repossession cases are involved) who called me in to see if they could help. They have booked me in to see a solicitor who usually comes in to help them on Wednesday to see if they can assist with my case.

According to the lady i saw at the council-housing section, she says the lender has to consider this interest option seriously under some hardship clause they have to comply with. They would have to present a very good argument as to why they are refusing this proposal. (not sure if anyone has more knowledge on this aspect).

I am hoping the solicitors i see on Wednesday will be able to help me, if not I'll call the court as you've suggested. Court date isn't till second week of December so hopefully I've got a bit of time.

gee_gee · December 20, 2009

HELP PLEASE!!!

I had my first court date on Thursday last week (an adjourned date) and found out that the other side had attended the original date a week earlier where a judge made a decision and ordered a 28 days repossession order in my absence.

When I went to court i provided the judge with the letters from court stating the adjourned date and stated this had not been requested by me. I also had a bundle of extra statements to present to the judge in my defence of which the judge didn't even show any interest in trying to look at it when i offered to approach to give him this information in my defense.

The only things he asked was if my situation had changed - looking at the other sides notes, unfortunately to which it hasn't. So I am still unemployed. He asked if i was in a position to pay the normal monthly payment in addition to clearing the arrears once again at present not in a position to pay the normal monthly payments. To this effect he said the decision made in my absence would be upheld.

Is this legal - seeing as the court dates mix up was through no fault of mine. Second I had sent MX a proposal letter on the 21st Nov to which I have still not received a response to up to this date. Surely this can be seen as a position where negotiations are still ongoing. When I told the judge this i briefly outlined the contents of the letter (which I also asked to present to him and he refused) and he proceeded to say MX wouldn't accept my proposal. Having gone back to think things through is the judge able to make these decisions/assumption without even looking at the documents in question.

The judge told me that bailiffs would be instructed on the 7th of Jan. Is there anything I can do to stop them knocking on my door??

What I have done thus far is after leaving court in a totally confused state. Had a cup of coffee in a local cafe. Went back to court and went to the equiries desk where i wrote a letter that was going to be given to the chief judge? asking for a new hearing where both parties should be present as this was no fault of mine. I also asked in the letter for the repossession order to be suspended.

The lovely lady who helped me said i should expect a response in 7 -10 days however I am worried that due to the Christmas period the response may be too late in time to stop bailiffs being instructed before the 7th of Jan.

Is there anything further I can do. I have two really good job prospect looming but due to the Christmas period both firms say they are only likely to get back to me in the new year.

Thanking you in advance

gee_gee · December 22, 2009