NRAM mortgage arrears...

[Marino13]

...we are having a little bit of temporary trouble with affording the mortgage ( a long story I will post up later when I have more time) but was wondering about being in arrears.

 

If I paid 50% of the mortgage this month, being the most I could afford at the moment, then 50% next month, would I be 2 months in arrears, having only paid half what I should?

 

That being so, if I pay nothing next month, then a full payment the next month after, would I not then have just been 1 month in arrears, and now up to date?

 

Just seems a quirk of the system. Probably wrong...

 

anyone know?

[Conniff]

Paying 50% for 2 months makes you in payment arrears for 2 months even though the amount adds up to just one month. It's not the same a missing a whole month.

Edited December 6, 2012 by Conniff

[Lea_HTH]

The issue is actually not meeting the full contractual payment, rather than missing 'whole' months. However, for the purpose of taking action, the mortgagee will probably wait until you are in the equivalent amount of three months missed payments.

 

If you know you are going to have problems paying your mortgage for a while, contact the mortgagee immediately and explain the situation to them. They may be able to arrange a payment holiday, or put you onto interest only (if you're not already IO) for a period of time until your finances improve. You are in a better position contacting them before you get into arrears rather than waiting for them to contact you.

[Marino13]

Thanks for the replies, they make perfect sense! Am currently talking to them at the moment, in advance of falling into arrears (my first letter to them was in October, took a month to hear back, and gave me the impression they wanted some time to elapse).

Unfortunately for me,its NRAM, who I've read are keen on just getting rid of people, so I suspect sympathy will be in short supply!

[Marino13]

Hi all,

just looking for any general info. I have the misfortune to have a mortgage with NRAM, and being stuck with them have recently gone into some financial trouble. Unfortunately this year my wife's mum died, and my wife was extremely distressed and ended up on sick leave then unpaid leave from work on depression; I had to leave my job to look after our children (both under 4)

 

Very tough times, but we continued to pay all our bills and everything from savings which are now gone, and now my wife has returned to work, and I am job hunting again. However in the short term, we cannot meet the full mortgage payments until I re-start work.

I contacted NRAM, and it took 3 weeks to receive a reply; I completed the finance form, returned it, then received a letter back saying they could not agree to my proposal (which was to pay 60% of the mortgage fee, for a period of 6 months). No explanation, alternative , nothing. Pretty disappointed.

I had expressly told them I did not wish to discuss anything on the phone, because people never remember any previous calls, staff are liberal with the truth, try to manipulate words etc, only in writing so I have a full record. Their recommendation? phone the Financial Hardship Team!

Has anyone dealt with this team? are they actually useful or just a fob off? I am thinking of appealing this decision, anyone had any success doing this?

 

I thought my offer was very reasonable, especially as it was terrible circumstance that put us into this situation, not financial problems alone.

 

Any advice, guidance, tips would be gratefully received!

[Marino13]

I am currently trying to negotiate with NRAM over a temporary reduced mortgage payment, which I originally asked about, in writing, in October.

After completing the income form, writing 3 times etc I have paid 50% of the mortgage this month, and asked for them to put in writing, if they accept or reject the offer, what they would accept etc

 

I have had one letter, in which they rejected my offer, and made no other offer beyond 'ring us'. I had asked that all contact be in writing only (after some fiascos in the past), yet since their letter they have not written anything to me just rang 3 times.

 

If I ask, do they not have to deal with you in the way you specify? I may have to reluctantly speak to them by phone, but that only ever benefits them. I want a paper trail.

 

Any views on this would be appreciated.

[Marino13]

Hi all,

 

I'll try to go into a little more detail later, as taking the kids out, but just wondered if anyone has had a similar situation as me. Last year, I advised my mortgage provider (N**M) that I soon would be having trouble meeting our full mortgage repayments.

 

long story as to why, but essentially my wife's mum was struck down out of the blue by a very serious brain tumour, and within weeks went from being a normal, healthy person to bedridden, half paralysed, and requiring 24 hour care. We couldn't afford to pay for the care, so my wife took an (agreed) unpaid leave of absence to care for her; we maintained full mortgage payments by topping up the shortfall from our savings, as I was still working full-time.

The decline, unfortunately, was rapid, and she died within 4 months; my wife was in a terrible depression, and was signed off by her doctor from work with stress and depression. It was so bad I took time off work to look after our children (both under 3), which didn't help the money situation. When my wife returned to work, we decided I should leave mine to look after the children, as we could not afford full-time childcare (my mum-in-law had been our child-carer), and were not eligible for any child / working tax credits.

 

So you can see it was a bit of an extraordinary situation. I advised N**M in October last year that November would be the month I could make a full payment (and that was a struggle). Three weeks later, I was still waiting to hear, despite stressing how urgent it was. I wrote again, and this time was sent a letter asking me to complete a financial planner; this I did, explained the background, and made an offer of 50% payments until I started work again, we sold the house of my mum-in-law (we own a third of it, no mortgage) or would consider anything they proposed - payment holidays, extended term etc.

 

They finally replied at the end of November, about 3 days before December's payment was due, which I couldn't fully pay of course; they rejected my offer, but didn't give a reason why, or offer anything themselves.

 

Since then it has been incredible frustrating; every letter/ offer I send (about 12 so far) is ignored, or the reply doesn't mention any specifics I asked for, and no counter-offer is ever made; I have made payments of 50% , 60% and 60% so far, the absolute most we could afford. They just seem to want to ignore me long enough to then go for repossession it seems.

 

Has anyone else experienced this? what did you do?

I have kept a full paper trail of all my dealings with them, all offers, requests etc, and can genuinely offer no more at the moment (I have even negotiated my credit cards into a temporary payment arrangement, which they all agreed to). I assume its best to just keep paying what I can?

 

By the end of Feb that will be 3 month of reduced payments without an agreement in place (we'll owe about £1500) , and I am starting to get concerned the next step will be court. Surely any right-thinking judge would see all the efforts I have made (plus the fact we can completely clear the arrears and resume full payments after the sale of my mum-in-laws house) and not agree to any claim?

 

as I said, bit frustrated at the moment, as it seems they are just unwilling to listen, or offer any alternative?

 

Also I noticed a letter today had changed from telling me to contact their 'financial hardship' team to contact their 'secured debt management team'. Does this sound like an escalation? anyone had dealings with either?

 

thanks for reading this far (!), and if there are any pointers, words of advice or experience you can share I would appreciate it.

 

Ta

 

p.s public thanks to Ell-en for a bit of previous advice on this

[Marino13]

hi all,

hoping I can get some advice. Despite more letters and offers to NRAM, all of which have been rejected, today I receive a letter stating that because my arrears have reached £2400 (they don't include this months payment which I haven't made yet, which will bring it down to £1750) they have no alternative but to instigate legal proceedings and a letter before action will be issued 'in due course'.

First question is, is this definite now, or does the 'in due course' bit still hint at pressure rather than action?

Second question is, so what happens next? got the impression the entire time that they never had any intention of helping me out at any stage, nothing but a wall of negative responses and 'we can't accept any payment offers in case it makes things even worse'!

 

Bit fed up with it all to be honest. Any advice would be appreciated.

[Ell-enn]

Hi there, how is the sale of your mother in law's house progressing ? once you have paid off the arrears from the proceeds of the sale would you be able to maintain the normal monthly payments going forward ?

[Marino13]

Hi Ell-enn,

the house has been on the market for a few weeks and has had a good number of viewings, estate agent very positive with better weather coming up; we even reduced price slightly. The arrears will be easily paid up, and yes, even if I still am job hunting we can maintain full payments from then on by using some of the money, which we could do for several years if need be (hopefully wouldn't come to that)

[Marino13]

As much as I am reluctant to, I may have to speak with them on the phone I suppose. I am guessing that once they issue the letter before action there is no chance to step back without full repayment or court, and if I can avoid that....

Owing £1700, ,less than 2 months mortgage, it still seems like such overkill to me!

[Marino13]

Held off on the phone call for now, not sure I want to sit there for an hour and argue over whether I could spend £3 a week on cat food, rather than £5....instead, I was more constructive and made a complaint to the Financial Ombudsman. I think NRAM have been deliberately obstructive and unwilling to help, and have folowed non eof the guidelines, so thought a complaint was the right way to go.

At the very least, if it all does go to court it may look better if I have filed a complaint against them.

[Marino13]

Well, been off fighting Barclays on another matter (bank account charges) and NRAM had gone rather quiet of late. I had sent them a letter informing them that I would be able to make full payments in April and May, so the arrears would not grow during that time, and would they not take any action while that was the case. I failed to hear anything, so assumed that was ok.

Apparently not, as today I received papers from their solicitors giving me 15 days to pay the arrears, or else to expect repossession. Is this ethical? when I told them I could make full payments this month and next. Their solicitors conveniently list the arrears as including this current month, making it look worse,even though they know that when I make the full payment this month arrears fall below 2 months again.

Coincidentally, this has happened alongside a complaint I made about them to the Financial Ombudsman, so I wonder if they escalated it due to that.

 

I would appreciate any advice, help, recommendations etc. The letter came as a real surprise, and 15 days from the date of their letter (arrived today, but dated 17th April) is not much time.

 

Thanks in advance.

[Marino13]

happy weekend all,

 

just bumping my post up to see if anyone has any thoughts, advice, pointers....

 

ta.

[Ell-enn]

When you say you received papers from solicitors - do you mean you received a court claim or a letter from them giving you 15 days to pay arrears ?

[Marino13]

Hi Ell-enn,

 

it was a letter from their solicitors giving me 15 days, after which they 'anticipate' being instructed to commence legal proceedings. Think this could just be a warning shot from them?

[Ell-enn]

You should write to them (by recorded delivery) enclosing a copy of the letter you sent to NRAM. Are you able to make an offer to clear the arrears going forward ?

[Marino13]

Not just yet. I am making full payments plus a little extra for April and May, and hope during that period to sell mother in laws property,which can easily clear arrears.They do know all this!

[Dumb & Dumber]

1st off have you thought of asking NRAM to accept "interest only repayments" for a given period....say 1year or until the sale of your mum's house NRAM. They agreed that for me.

2ndly they told me that once you reach the equivalent of 1 months missed payments they make an negative entry on your credit file. Once you have reached 2 months equivalent of missed payments they start to apply charges to your account £25. Once you have reached the negative balance of the equivalent of 3 months missed payments they start to consider legal action or alternatives such as "interest only payments" voluntary assisted sale, repossession.

I've found them to be ok on phone as long as you show determination in resolving your issue.

Hope that helps.

[Dumb & Dumber]

1st off, have you thought of asking NRAM to accept "interest only repayments" for a given period....say 1year or until the sale of your mum's house. They agreed that for me.

NRAM told me that once you reach the equivalent of 1 months missed payments they make an negative entry on your credit file. Once you have reached arrears to the negative balance of 2 months equivalent of missed payments they then start to apply charges to your account £25. Once you have reached the negative balance of the equivalent of 3 months missed payments they start to consider legal action or alternatives such as "interest only payments" voluntary assisted sale, repossession.

I've found them to be ok on phone as long as you show determination in resolving your issue.

Hope that helps.

[bade78]

Reading your posts has made me feel sick to my stomach for you. I had a together mortgage for 7years. The last year i fell behind by three months due to employment issues and going through the procedings of a tribunal. Anyway the actual stress that i suffered from Northern Rock was absolutly horrendous. I had explained the situation to them on several occasions. To no avail. The most my arrears went to totalled £5300. I paid my mortgage every month last year without fail and some over to help with the arrears. I bad to go to court practically every month to stop the evictions. It was only on the last court appearance at the end did their solicitor pull me over and said when you phone to make payments make sure you explain what your paying off. E.g your secured loan, unsecured loan or your arrears. As it transpires when i had made previous payments all they were doing were using my monthly mortgage payments as money towards my arrears. Therefore making me appear like i havent been keeping to the courts agreement.

 

I was gob smacked to discover this. I also mangaed to clear my arrears down to £2300 within two prior to me loosing the house. They then applied for an eviction date of july 3rd 2012. I had the letter only a few days before the eviction. I tried to ring and reslove the problem as at the end of every letter i hadfrom them it said, 'it is not too late to resolve the problem'. Clearly it was as i was told. They refused to help me stay in the house and offered no solutions other than paying off the full amount of arrears before the eviction date. What actually frustrates me the most is i explained that i had made an out of court settlement with employers that would clear off the full amount but the funds would clear 3days after the eviction. They refused me straight. At one point i was on the phone chatting to an advisor and i explained i had reduced my arrears by over £2000 in two months and wud can clear the rest the following week. He said tome that, it wasnt the point!

So what was the point of my loosing my home? They were awful and said there was nothing they could do for me.

 

I moved out on the eviction day but due to short notice i had to leave all my furniture and electrical appliances there because i couldnt find storage. I lost practically everything. The house went up on the market it was a lovely big 3 bedroom house front and back gardens and a garage. I bought it at £82500 in 2005. It was sold within 6weeks of my loosing it for £66000. In total i was £77500 in debt to them. When i finally spoke with them she told me how much i owed and that they wanted me to no that they were there to help me in anyway possible and that they didnt want to take what i didnt have. To which i told them they already f**king had it...... why couldnt they offer me that sort of help when my debt was only 2300 not 77k?

 

All they wanted was me out of that house. I felt violated by the way they had treated me i had lost the lot. Ive gone bankrupt since and i have to admit the stress and worry has gone and love the feeling of being debt free again. Nram is a now a government agency and the way i was treated was terrible, i was under the impression the government were meant to help people keep their houses. I hope you get it all sorted but just watch them as they are certainly sly under handed and determined. There was an article some time ago that said that the bosses at nram were still promised their bonuses if targets were met. The only way to hit targets was repossessions.......... I firmly agree this is true through my experiences.....

[solitaire2003]

Hi Marino, Did you make any progress with NRAM? I wouldn't hold your breath expecting any supposrt from the ombudsman. I'm in a similar position with a 'buy to let' and NRAM ignored my letters completely then involved Templeton LPA receivers. Despite the fact that I paid the arrears in November they have evicted the tenants, changed the locks and failed to tell me because they sent my post to the tenants address plus disclosed all of my personal details to the tenant, including my home address, DOB, amount of mortgage originally taken and amount of arrears.

The ombudsman has awarded me £100 compensation.

[solitaire2003]

All they wanted was me out of that house. I felt violated by the way they had treated me i had lost the lot. Ive gone bankrupt since and i have to admit the stress and worry has gone and love the feeling of being debt free again. Nram is a now a government agency and the way i was treated was terrible, i was under the impression the government were meant to help people keep their houses. I hope you get it all sorted but just watch them as they are certainly sly under handed and determined. There was an article some time ago that said that the bosses at nram were still promised their bonuses if targets were met. The only way to hit targets was repossessions.......... I firmly agree this is true through my experiences.....

 

OMG that really is appalling.

I'm in a similar position with NRAM with a 'buy to let' and they promise all sorts but renege on their promises and don't reply to letters. I'm thinking it might be an idea to involve my local MP as NRAM is a government agency. Seemingly thousands of people are in this position with NRAM and I think you're right that they are intent on getting rid of all mortgages. NRAM seem to be the only mortgage company acting in such an appalling way.

 

My niece in America was recently faced with the same thing, but even though she was declared bankrupt she has kept her home.

[miss money worry]

How you getting on?

 

I have been fightin NRAM since oct 2009. i am now a whopping £20k in arrears, yup, £20k. ALl down to marriage break up and fraud on application forms, long LONG story, but still fighting.

 

Had a call today, LBA sent out to me again, so the process begins all over again. I am sick to death of NRAM doing this to people. I am on my own with two kids, i have bipolar disorder (manic depression) clinically diagnosed and on meds. They are abominable to say the least. They even use my DWP social help payments to pay off the UNSECURED LOAN!!!! out of £480 help off social, they only pay £170 to my actual mortgage!! The DWP has told them not to, but they continue to cock up every month. Iif they paid it all to the right area of the mortgage i would only be £1900 in arrears to the main part!!!!! NOT £20K!!! i am at my wits end ;(

 

Good luck to all fighting!

[bade78]

My understanding of any money you get from the DWP is means tested and the amount is set at what a person needs to live on. So im pretty sure they cant take any money from it. So get it stopped straight away......

 

I have been fightin NRAM since oct 2009. i am now a whopping £20k in arrears, yup, £20k. ALl down to marriage break up and fraud on application forms, long LONG story, but still fighting.

 

Had a call today, LBA sent out to me again, so the process begins all over again. I am sick to death of NRAM doing this to people. I am on my own with two kids, i have bipolar disorder (manic depression) clinically diagnosed and on meds. They are abominable to say the least. They even use my DWP social help payments to pay off the UNSECURED LOAN!!!! out of £480 help off social, they only pay £170 to my actual mortgage!! The DWP has told them not to, but they continue to cock up every month. Iif they paid it all to the right area of the mortgage i would only be £1900 in arrears to the main part!!!!! NOT £20K!!! i am at my wits end ;(

 

Good luck to all fighting!