Desperately need advice High f/r mortgage but still paying something, Barclays seeking warrant for possession

[Lea_HTH]

How many years/months (exactly) are left on the term of the loan?

How much was the mortgage for/how much is left outstanding?

Is your current payment interest only or repayment?

How much is the property worth?

How much are the arrears?

How much is the current instalment (CMI)?

How much of the CMI can you currently afford?

Exactly how long do you think it will be before you can afford the full CMI?

 

The above questions require only very short answers.

 

When the original possession order was granted, how much were the arrears at that time?

Did you receive any contact from the local authority with regards to the Mortgage Rescue Scheme?

[Lea_HTH]

If the repayment element of the mortgage was changed to interest only, how much would that reduce the CMI to? This is an area that the mortgagee could have explored with you - under the pre-action protocol they should have considered whether a period of interest only could have assisted your circumstances. Make a request to them in writing asking that they change that element to interest only. They will have ten days to either accept or decline your offer in writing.

 

Contact the local authority again. Whilst you do have a good amount of equity in your property, this does not actually exclude them from being able to assist you, particularly since you have two children in the house, and one with disabilities. You will need to make an application, so do not be put off by someone saying 'you can't apply' - get the form and MAKE the application. In addition to this ask the local authority to supply you with a letter on headed paper stating that they have received an application from you and are considering it.

 

Your biggest hurdle is that you cannot afford the CMI at present, and the offer you can make is about half the usual payment. This isn't great news as it shows unaffordability - however, you do have a good amount of equity in the property, and if you can show that your current circumstances are only temporary, and that there is proof of more income in the near future, then you could ask the judge to consider the fact that there is no prejudice to the mortgagee by waiting for a few months more, as there is equity in the property (Administration of Justice Act 1970).

 

Once you are in a position to pay, you will need to pay the CMI plus an amount off the arrears, which will clear the arrears before the end of the term of the mortgage, which by my reckoning would be around £110 per month (this is slightly higher than the figure that the court would start with). If you can maintain those payments, then you have a good chance to stay in your property. However, that hinges on planning permission, which may be denied or delayed - so you'll need something in the interim with which to persuade the judge that you can afford the mortgage - and this is why my first paragraph tells you to contact the mortgagee and ask for a reduction to interest only in order to reduce your current payment.

 

What contingency do you have if the planning permission fails? Are you prepared to sell the property?

[Lea_HTH]

You have to put the request for interest only in writing, and copy the letter to the bank and to the solicitor (send both by recorded delivery), and request a response within 10 days. Make sure you keep the signed for receipt for the recorded delivery (it'll be on the Royal Mail website once the letters are delivered).

 

If putting you on interest only for a period of time would help resolve the current issue, then they should at least give serious consideration to it - particularly as you have equity in the property. Point this out to them in your letter.

 

If a warrant is issued and you receive a Notice of Eviction, then the letters you sent will be evidence to show the judge that you attempted to resolve the matter without further litigation. Unfortunately the court has no jurisdiction over whether the mortgagee will change to IO - that is entirely their decision, though most mainstream banks/lenders will consider such a request.

 

The bank isn't there to give you advice - you are free to seek financial advice anywhere else you wish, and then make them an offer that you can reasonably stick to. Your first point is to ask to change to interest only.

[Lea_HTH]

Lea, should the OP not be completing forms or something to try and get the repossession suspended? It is due to go ahead on 26th March from what I can see! They already have an order, they are just going to execute the order!

 

The OP doesn't make reference to a Notice of Eviction being served - in her first post she states the bank have executed a warrant, but makes no reference to a date for eviction. In her latest post she states the bank are 'applying' for a warrant of execution. I would think the OP would know whether or not she had received the Notice of Eviction - but perhaps she'd like to clarify that.

 

The date of 26th March appears, on my reading, to refer to the permission for the land her husband is hoping will raise funds, not an eviction notice.

 

The OP doesn't need anyone to panic her even further - she's probably under a great deal of stress already. I've got substantial experience of handling cases exactly like this one in court, and despite all the extraneous information given by the OP, it is only the facts which need to be established, and unless the OP has neglected to state that she already has an eviction date (which would be terribly unusual), then I'd guess there is no eviction date as yet. Hence the course of action advised is the correct one at this stage.

 

If there is an eviction notice, even if it's for 26th March (which I doubt as the OP makes reference to that date only in relation to her husband's land deal), then there is plenty of time to make a stay application. Stay applications can be made even when the bailiffs are standing on the doorstep.

[Lea_HTH]

The only thing I care about here is for the OP to get accurate advice for her specific set of circumstances. You are free to hold whatever opinions on me you like - it won't change the facts.

[Lea_HTH]

Once you get the Notice of Eviction, you should make a stay application. If it was recommended that you be put onto interest only and this was not done, then, so long as you have proof (you said he made the recommendation in his report), you can present this to court.

 

Repossession is supposed to be a last resort, so if there is something that can be done to assist you, then it ought to be done.

 

You should also consider contacting the local authority again regarding MRS, as per an earlier post. They also have funds to assist you with reducing the arrears, so you should discuss the matter with them.

 

Good luck.

[Lea_HTH]

My advice remains the same as in post #4 above - and subsequent posts.

 

You'll need to make a stay application once you receive the NoE - put this before a judge, he has discretion to allow you to stay if there is no prejudice to the mortgagee - subject to the things I have previously advised in the aforementioned posts.

 

It's not game over until the judge rejects your stay application (and in theory it's not all over then either).

[Lea_HTH]

Whilst, if you can afford it, or are entitled to legal aid (which is generally repayable and a charge can be placed on your house), to seek advice from a solicitor who will have the benefit of the sight of all your paperwork - I do think that the people making this suggestion to you are ignoring the fact that possession was granted mid last year, and it is only the execution of the warrant that stands between you and eviction. A solicitor will probably not tell you a whole lot different than what I have told you here (though by all means contact one as most offer 30 mins consultation free - so you could always phone a couple) - and in fact, whoever you spoke to recently has given very similar information to that which I gave you in post #4.

 

Couple that with the fact that you are not currently in a position to pay the CMI, let alone anything off the arrears, and you have a bigger problem than most.

 

It's not all doom and gloom though - because you do have substantial equity in the property and therefore placing you on interest only if that makes the mortgage affordable, will not cause prejudice to the mortgagee. This is the point that you should be forwarding in court - alongside the fact that you have children in the property. That said, the judge cannot force the mortgagee to change the contract, though he can adjourn the warrant in order for them to show just cause as to why interest only isn't an option.

 

The pre-action protocols are no longer relevant - they are 'pre-action', not post-possession - though the bank should continue to treat you fairly. Have you checked the charges (if any) on your account? Have they been included in the arrears figures?

 

Would you be prepared to sell the house yourself? This is preferable than the mortgagee taking possession and selling it. Or do you have the room to take in a lodger? The rent may make up the shortfall you need to pay the mortgage and something off the arrears.

 

You've obviously got a lot to decide on, but don't give up yet. Have you written to the bank yet to ask about interest only? Have you contacted the MRS at your local authority? Are you receiving statutory mortgage interest payments?