Santander Litigation Problems

[santanderrr]

Hi everyone...

 

My wife and I currently have a mortgage with Santander which we pay on an interest-only basis. Since being made redundant in December 08, it's been more of a struggle to pay the mortgage as I work freelance and work is far patchier despite a few good months. My wife has also since been forced to take a paycut due to the recession.

 

At the moment, things have taken a turn for the worse and I've just been informed litigation proceedings will begin on Friday (I only received the letter today, dated July 28th!) and I need to pay off the arrears of £2,600 immediately to avoid it.

 

If push comes to shove I can probably find the funds though it will be humiliating to ask friends and family. I am wondering, when I call tomorrow, what grounds I can ask to repay the arrears on. Is there a period of repayment I can agree to? I saw that other companies say you can agree to pay the arrears back in a 24 month period (on top of your regular repayments) - which would mean just less than £110 per month, which i could conceivably afford.

 

Does anyone know the terms of repayment one can negotiate with Santander in this window of opportunity before litigation commences?

 

Also, will the account having slipped this far harm me or my wife's credit rating?

 

Needless to say, I'll not sleep well with the phonecall to make tomorrow morning, so any advice will be gratefully received!

 

Thanks in advance.

[letsdothis]

Hello

 

If Santender were to take you to court for repossession, as long as you can prove to the judge that you can afford to make the normal monthly payment and a chunk off the arrears, the Judge can rule that you can pay the arrears off over the remaining term of the mortgage.

 

TBH I know it doesn't seem like it to you, but that amount of arrears is not too high.

 

I would realistically offer Santender what you can afford to pay per month for the arrears and show willing. If you can only afford an extra £100 per month in addition to the monthly payment, then offer that.

 

They maybe willing to hold off proceedings, if you can offer a lump sum, when you ring them. If not then it shows the Judge that you have tried to resolve the matter without the need of the courts.

 

Do not however strecth yourself so that you are left short and in a position that you may struggle again though. You have to take into account what if they increase the monthly mortgage payment.

[santanderrr]

Hello

 

If Santender were to take you to court for repossession, as long as you can prove to the judge that you can afford to make the normal monthly payment and a chunk off the arrears, the Judge can rule that you can pay the arrears off over the remaining term of the mortgage.

 

Hello. Thanks - I agree, the arrears aren't insurmountable so it's not the end of the world but I am certainly worried. I guess it's all in the call tomorrow.

 

There's no way I'll let it get to court though, I just wondered if anyone had experienced similar and how flexible Santander tend to be when you make an offer at this late stage.

 

Thanks for your help and reassurance

[letsdothis]

I was in a similar position last year with Birmingham Midshires. They held off court action on the basis that I paid them £1500 there and then and then £1000 a month thereafter. This has now been fully cleared arrears wise.

 

We were also in a similar position this year, with a loan secured on the house and the Judge ruled that we only had to pay £200 per month off the arrears.

 

The amount of the arrears on this account means that it will take over 8 years to pay back. Court is nothing to be afraid of, if you can afford the monthly payments plus the arrears. It stops the OC calling the shots and gives you relief from worry.

 

Don't let them walk over you on the phone, offer a relaistic amount and if they refuse then let the court sort it out for you.

 

And stop worrying. We have all been through similar and survived. I know it's hard to see it today, but tomorrow you will feel better. I promise.

[BankFodder]

I#m afraid that it is highly likely that your credit rating will have been affected by this

[hybrid77]

Santander recently took us to court (all cleared now). They were completely unhelpful. Santander wouldn't speak to us regarding the arrears, always telling us it was with litigation, even getting a balance out of them was like getting blood from a stone. Solicitors wouldn't discusss an arrangement until the arrears were under £1,000 (we started at £3,500). Even when they were below £1,000, they wanted £150 a week to come to an agreement.

 

We managed to get an adjournment at the first hearing (in Jan), and by the time of the 2nd hearing (in May), we'd got the actual arrears (excluding interest and charges) down to £192. They still wouldn't cancel the hearing for that amount, then they didn't bother to turn up.

 

At least the monthly arrears fee stopped once it went to litigation. Had the 2nd hearing been sooner, I'm sure we'd have got a fairer deal than £150 a week.

[tifo]

you could also reclaim any arrears charges as these may be unlawful. This should then bring down the balance.