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Mortgage arrears-court possession proceedings... Help!

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Hi there

 

I am looking for some help and advice with regards to the pending possession proceedings I've got going on with my mortgage lender at the moment.. hearing date 6th September.

 

I have a large amount of arrears (£6,615.25)... which build up towards the end of last year when my husband roofing contractors started laying him off due to lack of work. During this time I was a stay at home mom and so didn't have an income, we had to rely on laid off days/half time wages. I got a job January and went back to work as a teacher in order to prevent us from going under... since then we have been paying the usual mortgage amount with just an extra £20 towards the arrears... this was fine until we missed June and July's payments completely after hubbys job completely died a death and he is now the house husband with no work. So... we relay completly on my salary which we can just about survive on with a few tax credits to help.

 

My dilema is that my mortgage lender... Birmingham Midshires have bought in the legal services of Shoosmiths and are now taking me to court to try and secure a payment agreement to clear the arrears... at the moment clearing the arrears in near impossible with just one wage coming in. Shoosmiths have asked me to fill out an income and expenditure form to show what we can afford to pay.... but I am worried that if it looks like we are too skint and cannot pay back any arrears yet... then the possessions proceedings will continue and we will loose our home.

 

Can anyone advise please??? Do I fill out the income and expenditure sheet and show just how skint we are... or do I play my cards close to my chest and make it look like I can afford to pay a bit more... therefore having to sacrifice days out for the kids and chop a bit off the food budget.

 

we are a family of 6... me, hubby... 14 year old... 5 year old, 4 year old and a 2 year old....

 

I earn £24,000 a year and we owe about £125,000 on the mortgage. We have no option to down size as we are already over cramped in the house we live in...

 

Another thing that I wonder about... is the high interest rate I am paying on my mortgage... my mortgage is currently set at 6.05% until November next year... Is there any likely hood that a judge may request that the lender reduces the interest (when they see we can not afford to pay off the arrears)... being as rates have come down so much in the last few years??? About £600 a month I pay is purely interest... I pay £770 a month... so hardly anything actually gets paid off the loan... and they keep adding on arrears fees and £35 a throw which have mounted up, so much so (including the arrears) that although we are paying the mortgage... we actually owe more now then what we borrowed.

 

Sorry to go on... I am in a bit of a panic if I am honest. I am not sure which approach to take in preparation for the court hearing on the 6th September.

 

Any help/links/advice is greatly appreciated... many thanks, Maxine :-)


Moodle

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Hi there, have you asked your lender to change your mortgage to interest only? as part of the pre-action protocols they are supposed to explore all options. If they did this it would give you some breathing space for your hubby to get another job.

 

Also, do the £6615 of arrears include the charges they have been adding?

 

Try not to get too stressed, lets see what can be done :)


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Hi Ell-enn

 

Thanks for your post...

 

I did ask the lender once before if we could pay interest only... back last year before I went back to work... they sent an assessor round to see us who looked at the house and discussed our income and expenditure with us. Because I had proof that I had applied for jobs and had interviews coming up, they allowed us three months at a reduced amount of £300 (which was lower than interest only)... the shortfall between that and the usual payments, the interest and the charges were all added onto the arrears with an understanding that would have to be paid back when we were financially better off. My job began in January and we were better off for about 6 months until hubbys job ended.

 

Arrears fees are listed below:

27 Apr 2009 £35

18 Jun 2009 £35

07 Jul 2009 £35

02 Nov 2009 £85 (I think was a higher amount because of the fee for the assessor coming round)

19 Jan 2010 £35

05 Jun 2010 £35

14 Jun 2010 £35

05 Jul 2010 £125 (again, I think this fee is high because of the court proceedings).


Moodle

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bump...


Moodle

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Hi there

I too have had similar problems with Birmingham Midshires. They transferred us to interest only last year for a period of 12 months after my hubby was working on very little hours and as I had 3 children under the age of 2 (2 being twins!) it wasn't going to pay us any extra for me to go out to work and have a childminder in. However we missed one months payment in May and they put us straight back on repayment! We simply cannot afford repayment and our arrears are at £4,000. They are only at the stage nowof threatening that they are starting court proceedings but what I have been doing is continuing to pay the interest only amount. I was advised that if you keep doing that, a judge will look favourably on the fact you are trying to pay something within your affordability range. They are supposed to explore all options with you and to be honest, I don't think Birmingham are very good at that. I wrote and asked them to continue the interest only for another 12 months as we are very confident my husband's business will have well picked up by then but they said no on the basis that they look at your 'investment potential' which basically means if you get to the end of your mortgage term then you need to have something to pay off the mortgage with if you've (worst case scenario) been paying interest onlu for the full 25 years. Considerng my husband built our house, our mortgage is £160,000 and the last valuation 18 months ago was £420,000!!! And that's during an economic downturn so I think they're missing something!! I've also just recently written to them asking them to transfer the arrears to the end of our mortgage term but I doubt they'll agree to it.

Try not to worry, hav you tried contacting any independent debt counsellors/advisors in your area?

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Thanks for posting....

 

I have had a bad week really and haven't done anything about it. I keep hiding my head in the sand. I was supposed to send in an income and expenditure info to the solicitors, but I just can't seem to bring myself to do it. In the day time I am distracted by noisy kids... and then on the evening I try not to think or worry about it all and so a vicious circle is beginning. I really should get it done... but I am worried they will see we can't afford the mortgage and just reposes the house.


Moodle

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