Repossession notice received! - **WON - SUSPENDED!**

[Ell-enn]

Let us know if Capstone contact you before the hearing.

 

Good Luck

[Silverado 2011]

The possession order has been suspended. I was really made to sweat today though and it was a 30 minute hearing which has left me exhausted.

 

I got to the court about 10 mins early and had the horrid bit before the hearing where Capstones solicitor wants to have 'a chat' he asked if there had been a change in my circumstances to which I replied that other than the MIR payments there hadn't. He then said that what had been proposed to Capstone was insufficient and Capstone were still seeking repossession. For some reason I let this get to me and I felt really unnerved. Why the courts allow this procedure is beyond me, I cant see it adds any value to the process.

 

The Judge was ready to see us and Capstones bloke just jumps right in, quoting level of arrears and how bad my payment history was and that even though MIR payments were being made they were incorrect as there was no way anyone receives more than their monthly repayment. I couldn't get a word in and felt very much like the first hearing that I was going to get absolutely steamrollered.

 

I managed to assert myself and said that I had evidence of the payments due from DWP and I presented the statement to the Judge. She said that although I did have a poor payment history there was enough evidence to show that future payments would be made. Capstones man then tried to state again that the calculation were wrong and couldnt be relied upon. The Judge stuck to her guns and said that she was not prepared to throw someone out of their house if they're receiving the help they're entitled to by the Government.

 

We then got onto the subject of the arrears, Capstone argued that it would take 31 months to clear the arrears under the MIR payments. The Judge asked what was the length of the Mortgage and was told that it was 21 years. The judge said that the level of arrears could be repaid in a reasonable time. She then claimed that the possession order would be suspended. I stated that I had contacted Capstone via letter and twice by phone to request the arrears to be capitalised and hadnt received an outcome, she said that it was Capstones prerogative and it doesnt appear that Capstone wish to do this.

 

Capstones bloke then tried a very low trick in my opinion. He stated that the mortgage repayments were due on the last day of the month (28th February) and the DWP were not paying until the 8th March as per the schedule. He said Capstone would not change the date of the first repayment. The Judge saw this as him issuing an ultimatum and replied that she could order Capstone to change the date. She said that in no way would I be contravening the terms of the suspension before we had started and said that the order was suspended on the basis that the first payment was received by 31 March and then the last day of the month thereafter, this was the crowning glory.

 

She then gave me some very stern words, saying that my payment history was indeed appalling and that if the DWP have made a mistake with the calculations based on the information I have given them then Capstone will be back in court faster than I can believe. All in all a great outcome but it was an experience like no other, more terrifying than either of the other two and I felt like I was losing the fight for a long time but pulled it out of the bag at the end.

 

I'd just like to express my thanks to everyone, espcially Ell-enn for sorting out all the paperwork and guiding me throughout this ordeal and Sillygirl for the incredibly supportive and wise words. In December I really thought I had no options, how wrong could I have been. This has to be the most stressful thing I have ever done. This website is certainly getting a lot of publicity from me to anyone who has a problem with anything financial. You are all awesome!

 

I tried to edit the thread title but I cant get it to show on the thread page.

[Ell-enn]

FANTASTIC!! Well done for being so brave you must be relieved and exhausted all at once.

 

Fair play to the judge - she might have given you a hard time, but definitely came down on your side with the payment date (I bet you could have kissed her lol) - I wish I could have seen Capstone's lad's face

 

I hope you can now relax a bit and good luck with getting another job.

 

Ellx

 

p.s. I've changed the title of the thread for you

[sillygirl1]

Lovely news, sounds like Capstones person was a nasty bit of work, makes you wonder why people want to become solicitors doesn't it...

 

Keep us updated on any developments, I've been through the ropes with a couple of companies and know how unnerving it can be to have a jumped up Piers Morgan say "No way..." even when you have gone out of your way to stop the arrears from mounting...

 

One day the whole concept of 'arrears fees' will be abolished, surely if you really can't pay they shouldn't be able to clock up fees just because they can.

 

Have a good drink to celebrate and then get down to some budgetting and prove Capstones wrong.

[hilaryfrances]

one of my son in laws is a solicitor, he gave it up because he got fed up with the pressurre and not being able to move quickly enough to help people. He worked for one of the biggest companies in the country, Russell Jones and Walker, it is them who are representing the 4 MPs who are being taken to court over their expenses so you cant get much bigger than that!

 

Anyway, well done on your win, I know what it is like as I have been through it myself, you must make a priority of making your payments now. I claimed my arears fees back so give it go.

[on*the*case]

Well done.

Its tough, but with help you did it. I hope you feel proud.

 

Capstone really are a dreadful mob, dont let the issue of the arrears charges go unchallenged, there a lots of people on here going through the same process.

[Silverado 2011]

On the subject of fees, the statements show that I have so far amassed £1,385 in 'litigation management fees' on my account and I reckon that they'll continue accruing at a rate of £115 per month.

 

This was mentioned in todays hearing and Capstones solicitor said they were rightly charged to the account and did not make up the arrears total, this was rubbish as I reconciled the arrears and I knew that they did make up Capstones arrears.

 

Whats the stance on these charges? am I able to get them reversed?

[on*the*case]

On the subject of fees, the statements show that I have so far amassed £1,385 in 'litigation management fees' on my account and I reckon that they'll continue accruing at a rate of £115 per month.

 

This was mentioned in todays hearing and Capstones solicitor said they were rightly charged to the account and did not make up the arrears total, this was rubbish as I reconciled the arrears and I knew that they did make up Capstones arrears.

 

Whats the stance on these charges? am I able to get them reversed?

 

Capstone are notorious for their behaviour over excess fees and charges.

On the Witness Statement they were probably described as a Mortgage Shortfall.

There are two issues here; Capstone attempting to present charges as arrears and the 'fairness' or not, of the charges.

 

The charges are NOT arrears. The arrears are the shortfall between the Contractual Mortgage Payment and the actual amount that has been paid. Additionally any amount paid towards the arrears, should be applied by Capstone to reduce the arrears.

Regarding the 'fairness' issue, GMAC was recently fined a very large amount by the FSA and also ordered to repay excess charges. It is believed that the FSA is currently investigating Capstone and the associated companies, and as their behaviour is far worse than GMACs, it is expected that the fine will be that much greater.

[Silverado 2011]

Blimey, thats something I really do need to look at then. As having £115 per month lumped onto my account is not good.

[Silverado 2011]

A quick question please.

 

I received notification today that due to a change in LIBOR rate my monthly mortgage repayments will change from £341.02 to £345.12, an increment of £4.10 per month.

 

As I'm receiving MIR payments which will not change do I need to pay this £4.10 per month over to Capstone? I do not want to fall foul of the suspended order over £4.10 per month.

 

Before ringing Capstone I wanted to ask here first.

[Ell-enn]

Ring the DWP first and ask them what happens when the interest rate goes up.

[Silverado 2011]

Apparently the MIR payments are calculated on a fixed rate and changes in LIBOR does not effect them

[Ell-enn]

OK, in that case I'm afraid you will have to make the extra payments to them so you don't fall foul of the court order. I

 

Have a look on the order you got from the court after the hearing and see if it says anything about how much is to be paid each month. It may just say contractual payments or it may say £XXX per month.

[Silverado 2011]

I thought I would. The wording on the document is:-

 

IT IS ORDERED THAT

 

1) Warrant suspended on the following terms

2) Payment of current monthly instalments of £341.02 and £191.26 per month in relation to the arrears of £5943.84. First payment to be made no later than the 31 March 2010.

[BlurredFX]

Hi Guys,

 

Not hijacking. I have a thread running in the mortgages section, chronicling my application for MIS / MIR - and how the situation with potential overpayments (6.08%) etc is evolving. The link is at the bottom.

 

I think it is becoming quite informative. Feel free to use it to spread the word.

 

I know it is a bit late for this thread, but if this info gets around more there is a good chance we will help someone avoid the agro the OP has had here.

 

Reading around today I have realised how much Ell-en does for the forums - I didn't even realise there was a Repo section of the site!!! So hats off to Ell-en

 

http://www.consumeractiongroup.co.uk/forum/mortgages-secured-loans/229438-mortgage-interest-support-mi12.html

 

I hope this can be of help to people.

 

Blurred:)

[Silverado 2011]

Ooh thanks for that I'll definitely have a look.

[BlurredFX]

Apparently the MIR payments are calculated on a fixed rate and changes in LIBOR does not effect them

 

I may stand to be accused of nit picking here, but I believe the devil could lie in the detail...

 

Are you aware of the distinction between the BoE (Bank of England) Base Rate and LIBOR (London Inter Bank Offered Rate)? Up until they introduced the temporary 6.08%, standard practice for MIS/MIR (Mortgage Interest Support) to pay BoE +1.51% (Double check that rate, but sure its correct). I am not sure if this current arrangement is set at BoE +5.5% or fixed at 6.08%. If it is the first one, and BoE interest rates rise, the MIS payment will rise with it. If it is fixed, they won't.

 

Now, some tracker mortgages are based on LIBOR and some are based on BoE.

 

BoE rate is what the BoE pays for deposits. LIBOR is what banks lend to each other at. Under normal circumstances, LIBOR mirrors BoE very closely. Since the credit crunch started, the banks could not trust each other, the LIBOR rate went through the roof, as did mortgages that tracked the LIBOR rate! Those that tracked BoE (such as mine ;-) ) came down.

 

Am I helping here, or confusing things?

 

I think if your mortgage tracks LIBOR, and the DWP Payments track BoE (which they traditionally do), then there may be a disparity at some point - is that your concern?

 

Blurred:-)

[BlurredFX]

The Judge was ready to see us and Capstones bloke just jumps right in, quoting level of arrears and how bad my payment history was and that even though MIR payments were being made they were incorrect as there was no way anyone receives more than their monthly repayment.

 

Hahaha been in a similar type of position in Court myself - the last one was funny as a just laughed while the Claimant hung himself, but not my point.

 

MIS payments SOMETIMES are more than your mortgage co requires, it depends on what they require. MIS pays a flat 6.08% upto £200k, regardless of what your mortgage provider required - be it more, or be it less. Of that I am quite sure, based on what I have seen on the forums.

 

FX:)