Help First Court Date 9/10/09 - SUSPENDED

[FireGuy]

I have received a court date for a repossession order for 9/10.

I am currently four months in arrears, I have made no payments towards the mortgage in this time. What makes it worse I have been in this position before and was given the money by a family member.

Reasons why I haven’t made payments or struggled to occurred 6 months after the mortgage deal was accepted. I was made redundant, although I found another job with a month, I am now in a lesser paid job.

To add to this my partner has reduced her hours from full time to 18hours per week to accommodate our four children. When putting pen to paper in a budget our incomes look sufficient enough to cover mortgage and bills but things seem to crop up, joys of four children, and we can never seem to accumulate the repayments.

I have sort advice from CCCS has I have other unsecured debts but need advice has to how to reach a agreement with the mortgage company but when contacting them and going through an income expenditure they want to add what should be left on to what is already an extortionate figure, but my bank account can tell you that there isn’t any left at the end of the month.

I have made agreements with them but for reasons entirely of my own been unable to stick to them. At the present moment the only money I have to make a payment is about 1/3 of the monthly repayment amount. The mortgage company assured me with no doubt that was not enough to stop them applying for a full repossession.

Any advice on how I can present myself to court or is there anything extra I can do.

Bit of extra info my mortgage is through SPML/ Capstone and I have been with the lender nearly two years.

[jansus]

Hopefully Ell-enn can help you with any defence forms and she should be along later . Firstly you wil have to face the fact that you will have to be able to offer to pay the whole MP each month - plus a small amount towards the arrears.

 

You are correct in that you will have to provide and I&E form showing that you are able to do this and explain why you have not been able to keep to agreements before.

 

Is this your first actual court hearing?

How do you pay your mortgage ? DD or by cheque ?

Do you have a regular income?

Are then any interest rate changes due on your mortgage in the near future?

[FireGuy]

Yes this is the first actual hearing, we paid arrears before last court date arrived.

 

I have been calling capstone office and paying by card over the phone.

 

We do have regular income, im paid weekly and my partner monthly.

 

We are in a fixed period until november, but i recieved a letter the last week, (which i dont have to hand) stating full interest rate will be applied at the end of november, basically the payments stay the same.

 

I agree and what to pay the arrears and mortgage amount each month, i feel my problem is a lack of capital to pay them before the court date to show willing.

 

I have also taken a second job (hopefully this will go in my favour) but wont get paid until next month.

 

Thanks for your reply

[jansus]

Please dont think I am being hard on you here - but if you want to keep your home then the mortgage must be your priority.

 

Therefore you ned to find some way of paying the mortgage after pay day before anything else.

 

Are you aware of the new protocol rules that lenders should adhere to?

 

you are correct that that taking an extra job will help.

 

I would not worry about reducing the arrears before the hearing - ESPECIALLY if it means borrowing from another source - in other words robbing peter to pay paul.

 

will post more tomorrow

[gezwee]

I'd agree with Jansus..... your mortgage is your priority, anybody else can wait in the wings (except council tax but even they are flexible).

 

Can you post up a rough guide to your present I&E, don't be too precise in case anyones looking in, it gives other members the opportunity to point you in the direction of getting the right assistance.

 

Unfortunatley you will need to show that you can clear the arrears in a reasonable timescale. The fact that you have made 0 repayments in the last 4 months will not look too good (sorry, but best to be honest) If recovery action is effected the court will want to see evidence of your ability to pay.

 

Gez

[taperjeangirl]

Hi, I was required to attend court early September (my first time) as I had accrued 4 months mortgage arrears. I gathered so much evidence against my mortgage company with regard to their negligence and failure to adhere to 'mortgage rules' yet none of this mattered when it came to the court appearance.

The only thing that mattered was that we had thankfully gained written agreement to pay a certain amount back per month toward the arrears. This was enough to postpone their possession claim as long as we adhered to this amount.

This amount was only 31.60 on top of a mortgage which is £800 a month. Our arrears were approx £3300.

The one main piece of advice I would give anyone is to arrive early and get advice from the legal professional available prior to your hearing. Explain your situation and hopefully they will understand and fight for you. The free solicitor we saw represented us in court and did all she could to give us a fighting chance of keeping our home.

Also please try and get a written agreement from your mortgage company - however low this is. Try your luck and hopefully they will accept. It is awful going to court but you must attend. I wish you the best of luck.

[jansus]

To help Ell-enn who can help you with the wording of the defence you will need to prepare an income and expenditure sheet and full details of your dependants etc.

 

then in your own words prepare a rough statement of why the arrears have happened how you intend to prevent that happening in the future.

 

My guess is that they are going for a suspended PO which will mean they can act quickly if you do not keep to an agreement. You dont have much time so can you confirm today you will prepare the above then I can pm Ell-enn for some help for you?

[jansus]

If you need help please post again with any info that will help with the forms for court hearing

[mercyblue]

fireguy you say you are coming off your fixed rate in november. Most SPML mortgages are based on the LIBOR rate after that i.e LIBOR +margin. The margin should be in your original docs. Considering the libor at the moment is 0.54% the payments could reduce dramatically, will depend on the margin.

[jansus]

If you are getting help elsewhere can you let us know as you are getting very close to your hearing date and we are here to help if you want??

[FireGuy]

Sorry for the later reply been working second job all weekend.

 

I have attached a copy of my budget as requested.

 

This is as its stands at the moment without my second job as i wont be paid till next month and how this will affect tax credits.

 

Mercyblue i will dig out the letter, with regards to the fixed period ending and post more info.

 

Thanks all so far for your help and advice

[Ell-enn]

Hi, have you sent the defence papers back to the court?

 

I can't see your budget sheet

[FireGuy]

Here is the monthly budget

 

Thanks once again

 

monthly budget.xls

[Ell-enn]

Hi there, I have looked at your budget sheet and it looks as if you have some disposable income to pay towards the arrears and you will have to make that offer if you are to save your home.

 

How much are your arrears? are there any arrears charges in the amount the lender is stating?

 

Have you filled in the Defence form and sent it back to court?

 

If not I can help you with a statement to take to the hearing on Friday (you do know you will have to attend the hearing?).

 

I have also affixed the budget sheet we usually use, it calculates as you go along and has the right financial sections. See if you get the same answer.

[FireGuy]

No i haven't filled in the defence forms yet, so your help would be gratefully recieved.

 

Yes i will be attending court, should i contact anyone now regarding advice on the day, i.e representation or will the duty legal advisor be ok.

 

Cant see the budget sheet.

[Ell-enn]

Budget sheet affixed now.

 

Do you know if your court has a duty legal advisor ?

 

It is probably too late to return the defence form unless you can hand deliver it to the court tomorrow - is that possible? If not you will have to take a statement and budget sheet with you on the day - I can help you with that.

 

Do you have any documentary evidence of your second job? i.e. offer letter etc.

Budget Sheet.xls

[gezwee]

Hi FG

 

Just took a look at your budget sheet.

 

Probably best if you let Ell-enn know if theres any orders for the unsecured debts. If not, they'll have to accept what you can afford - if thats a quid a month then thats all they can have...... home and family come first

 

Not wishing to get your hopes up too much but assuming you are only 4 months in arrears theres every possibility of jiggling your budget sheet to show you can clear arrears within a few months (appears to be well within your means) so you are already in a much better position than some that post here looking for advice.

 

Clothing allowance...... thats another one you could take a look at, may be worth stating that you'll use existing wardrobe for a while until arrears are settled.

 

I've seen Ell-enn help numerous caggers keep their homes in the past and yours I'm sure will be added to the tally soon

 

Best of luck

 

Gez

[FireGuy]

Hi All thanks again.

 

Yes the court as a duty legal advisor.

 

The amount they are claim is £4300 and this includes their charges.

 

I have asked manager at second job for a letter stating my employment.

 

With regards to unsecured debts i have no orders, i have informed the majority of them of the situation offering them token payment but my focus is on the mortgage.

 

So for i have the following things i am going to take we me on friday:

• Budet sheet
  
• Letters from mortgage company and their solicitors
  
• Tax credits info
  
• Pay slips (my partners and my own)
  
• Letter from second employer
  
• Utility bills
  
• Other bills
  

Am i missing anything?

 

My plan is to contact the mortgage tommorrow evening to come to an agreement before court on friday. If we dont come to an agreement does this increase the posibility of losing the house on friday.

 

Also to be completely honest looking at my i&e there are no justifable reasons for me to be in arrears apart from my own lack of organisation and stupidy are the court going to respect that level of honesty?

[killylilly]

Hi Fireguy,

 

Good luck when you go to court.

 

I was in your position a few years ago,and i couldnt help but notice that you have alot of non priority debts.

I strongly suggest that you immediately stop paying these,make sure you can meet your mortgage payment,and add £50 towards the arrears,which you will probably be able to afford since stopping all non priority debts.

I say this full of confidence,as i went to the CAB and told them of my massive problems,they go on to all creditors and offered them £1 per month,which they have to accept when you are in such a financial mess and are about to be repossessed.

So stop all non priority debts and start your new calculations towards your mortgage....

 

Good luck and enjoy xmas in your own house !!!

 

Killy

[FireGuy]

Re-Completed Budget sheet attached

 

BudgetSheet.xls

[gezwee]

Hi All thanks again.

 

Yes the court as a duty legal advisor.

 

The amount they are claim is £4300 and this includes their charges.

 

I have asked manager at second job for a letter stating my employment.

 

With regards to unsecured debts i have no orders, i have informed the majority of them of the situation offering them token payment but my focus is on the mortgage.

 

 

So for i have the following things i am going to take we me on friday:

• Budet sheet
  
• Letters from mortgage company and their solicitors
  
• Tax credits info
  
• Pay slips (my partners and my own)
  
• Letter from second employer
  
• Utility bills
  
• Other bills
  

Am i missing anything?

 

My plan is to contact the mortgage tommorrow evening to come to an agreement before court on friday. If we dont come to an agreement does this increase the posibility of losing the house on friday.

 

Also to be completely honest looking at my i&e there are no justifable reasons for me to be in arrears apart from my own lack of organisation and stupidy are the court going to respect that level of honesty?

 

Hi FG

 

You are highly unlikely to lose your home if you can evidence a satisfactory schedule for repayment of arrears. Even the creditor wants to see a return on their books and in the current climate a repo is not a good option for them.

 

The only thing you appear to be missing is your statement.

 

Bacisally runs through your application, why you've ended up in arrears, what you I&E is now, a showing of your commitment to clear the arrears...

 

Ell-enns off line at the mo so hold tight for a while. Me thinks a suitable statement will end up posted on here soon.

 

To prepare yourself have a look at some of Ell-enns other threads for a suitable statement of affairs.

 

Have you rejigged your I&E yet? How much have you come up with?

 

Gez

[gezwee]

Just spotted you posted your I&E the same time as I last posted

 

Right, you really need to have a long hard think about those unsecured creditors....... I note they are almost all with DCA's - these will not accumulate interest or charges, if they try to convince you they will, tell them otherwise. They cannot accrue anything unless lawfully assigned and determined enforceable at county court. A CCJ effectively replacing the (if any) regulated agreement.

 

They are not a priority, nor will they ever be unless a DJ orders them to be so.

 

IMHO I'd knock the clothing allowance on the head as well, you are trying to convince a third party that you are comitted to settling this matter.

 

Just my opinion but I'd want this monkey off my back as quickly as possible and sort the unsecured at my leisure.

 

Gez

[Crapstone]

Hi All thanks again.

 

Yes the court as a duty legal advisor.

 

The amount they are claim is £4300 and this includes their charges.

 

I have asked manager at second job for a letter stating my employment.

 

With regards to unsecured debts i have no orders, i have informed the majority of them of the situation offering them token payment but my focus is on the mortgage.

 

 

So for i have the following things i am going to take we me on friday:

• Budet sheet
  
• Letters from mortgage company and their solicitors
  
• Tax credits info
  
• Pay slips (my partners and my own)
  
• Letter from second employer
  
• Utility bills
  
• Other bills
  

Am i missing anything?

 

My plan is to contact the mortgage tommorrow evening to come to an agreement before court on friday. If we dont come to an agreement does this increase the posibility of losing the house on friday.

 

Also to be completely honest looking at my i&e there are no justifable reasons for me to be in arrears apart from my own lack of organisation and stupidy are the court going to respect that level of honesty?

 

Their claim on the arrears should only be your payments missed ..not the charges. You need to point this out to the judge and work out what the true arrears are. Capstone will still go to court despite any agreement you make between now and then, don't trust them at all.

 

You also need to take into consideration the charges by Capstone. The judge may order you to pay x but Capstone will swallow that up in charges which could be anything up to £115 per month which defeats the object.

 

Take a table of their tariffs with you and make the judge aware that Capstone/SPML will still reserve the right to charge you and effectively wipe out your attempt to reduce any arrears under any suspended repo. order. It doesn't take Einstein to see that an order to pay £50 per month when the charges are £65 is going nowhere. Capstone should advise the judge and put this forward as a reason not to accept the amount offered, but they won't.

 

Remind the judge that you will be taking the issue of the charges further if they won't address them. The FOS is wise to this and acknowledge that the acceptance of payments in court must reduce the debt and not be added to by charges. The court gives them an ample forum to accept or decline and to accept knowing it's not going to reduce the debt...draw your own conclusion.

 

Don't talk to their solicitors before you go before the judge , they will try to convince you that agreeing is the best option.

[Crapstone]

Your budget sheet needs looking at as £150 a month on clothes/shoes but £15 on cigs looks a bit odd. There are guides out there that tell you what are acceptable amounts per adult and child for living expenses.

 

You need to put your mortgage and essentials first, then the sundries and and emergency reserves. What's left over can be divided amongst the rest pro-rata. You'll get the empty threats from the DCAs and depending on the amount of the debt and how old it is they may follow it up with legal action but that's nothing that can't be sorted if and when.

 

For now it's keeping a roof over your heads and 4 months shouldn't go against you as long as you can make a proposal to pay the current payments and some off the arrears.

 

Can you reason why you didn't pay? Other lenders putting pressure on you. Family circumstances ....Capstone/SPML non-sympathy and mistakes on your account.

 

If it helps we were 4 months behind..OH took it upon himself not to pay without telling me. Ended up with a suspended repo at £50 extra per month on 2k so your affordability fits well within that if you ditch the creditors until this is sorted.

[FireGuy]

I suppose what worries me most is i have made agreements with Capstone in the past and been unable to stick to them, also was is this position before and managed to borrow the money from a family member. I think this is really going to go against me on the day.

 

Last time i spoke to capstone they said if we came to an agreement before friday they won't apply for a repossesion order but for a suspened one. Is this the better option to take now, as if i do what is stated above and reduce payments elsewhere i should easily manage to clear the arrears in a few months.

 

Just worried that i am two days before the court date and i am no clear whether i going to be able to come to an agreement or lose the house, and the latter isn't an option. On the other hand i don't want to make another agreement with them i can't stick too.

 

I am going to take a copy of the budget sheet posted last nite and look at re-jigging it to a proposed one today and taking that also to show my intentions. Will post re-jigged shortly let me know what you think please.

 

Once again thank you all for your help and advice.