Years of worry taking its toll

[kowalski72]

I'm after some advice here as I feel like I'm trying to bail out the Titanic with a teacup...

 

We have a mortgage with Birmingham Midshires,and a secured loan with GE money,both of which we are in arrears with. Over the past few years for various reasons our payments have been eratic,for various reasons,but for the past 6 months I have been trying to take charge of stuff and sorting everything out.Birmingham Midshires have actually been really good,and spoke to my wife on the phone about securitisation,if we paid 6 months at the normal monthly payment.I thought this was going fine,until after a phonecall to them I found that there had been no payment in October.. I put money every month into my wifes account to call and pay by debit card,but found out then that she had been getting harrassed by GE Money and paid a double payment to them to try and get them off her back and missed BM's payment.

Both have an order on the house and are adding huge charges every month. The house is worth about the same as we owe,and if I'm honest is too small for us and our 3 kids. We have fought and fought with them to get a reasonable payment plan but GE just seem to make things up as they go along,asking for bigger and bigger amounts every month and always tell us our arrears amount, but this must include a load of charges as it is far more than the payments we have missed.. Sometimes I feel it'd be best just to hand the keys back and rent a bigger house for quite a bit less than we pay BM and GE.

 

If it does go to court can they include the arrears charges in the total, and if we did hand the keys back,BM would be paid off completely so would GE come chasing us with what we are due tem plus all the charges they have been adding over the years? My wife was told that out of the £300 we pay each month,£280 go to pay interest and charges- I can't see us ever paying this off...

 

Just after some pointers about what we can do, what would happen if we did end up in court,and what to expect if we did go for voluntary repossesion?

[jansus]

I will look at your thread in more detail tomorrow. But as a quick pointer if there is any chance you will owe more than the house is worth if it is undersold - it would be if empty and in possession I would ALWAYS recommend selling rather than hand the keys back. You are entitled to stay in the house while selling and you will keep control of costs as well.

 

Also there have been some successes in reclaiming mortgage charges .

[kowalski72]

Many thanks,

We have spoken to BM again,and they are being really good, just GE who are causing the real problems, which seems to be a common thing when reading some of the posts on here. I think I'll send in a SAR before making any rash decisions!. I've learned a lot just reading some of the excellent advice!

[jansus]

http://www.consumeractiongroup.co.uk/forum/repossessions/191703-law-society-mortgage-repossession.html