NRAM Repossession - Help Please

[optomist1]

Hi All - I'm about to face first court hearing with NRAM re repossession..7 year fixed rate mortgage which ends in March 2014...I've offered interest only for now plus a bit off the arrears then I can reschedule the mortgage in March... declined by them... they want repayments which equate to 70% of my salary which I think I would be mad to agree to as it isn't sustainable... thoughts appreciated please..

[ims21]

Hi optomist

 

I have started a new thread for you here in the Home Repo forum.

 

The guys will be along to help as soon as they are available.

[ukaviator]

Before a mortgage lender takes you to court for mortgage arrears, it is expected to follow rules outlined in a 'pre-action protocol'. A court claim for repossession should be a last resort. The rules say that lenders should take all reasonable steps to avoid repossession and only take homeowners to court over mortgage arrears as a last resort. The rules encourage lenders and homeowners to explore all the available options for paying off arrears and avoiding future payment problems.

[optomist1]

Thanks for this...I've offered interest only on the mortgage itself and monthly repayment + interest of the arrears (over the same term as the mortgage)... this adds up to just over a third of my salary....they're demanding 70% of my salary and have fixed a court date for mid December...I live in a rural area 3 miles plus from nearest shop/bus, I work 8 miles away but in calcluating my 'expenses' they haven't taken this into account at all ie I have high transport costs and because I'm off gas grid have high (electric) heating costs too ....

[Ell-enn]

Have you sent them an income and expenditure statement ?

[optomist1]

Hi I've been through several with them.... I'm doing another later today over the phone.... they seem to allow set amounts for eg car expenses... they allow £30 per month (excl fuel) which is £360 a year and just covers tax and the MOT test - no repairs or tyres or anything. I do c40,000 miles a year over rural roads so wear and tear is quite high.....I'm scared of agreeing to something unrealistic because they're saying they're going for a suspended possession order (assuming we can agree a payment schedule) and will go straight for possession if I default... to be honest I'm scared of them anyway... they were so aggressive when demanding 70% of my salary... I don't know how to persuade them to be reasonable...

[HTA]

Hi optomist1,

 

Please remember that these people are faceless, spineless BULLIES .

 

Do not let them intimidate you - ever.

 

I am sure that some of the other clued up people on here would suggest that you DO NOT TALK to them on the phone? I think you will find that people will suggest that you fill in your own I and E sheet and submit it in writing to Mr Bully. That way everyone knows what has been said and what has been agreed.

 

I and E is what YOU NEED not what Mr Bully wants to believe!

 

Take a look at the I and E at this link http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=47924&d=1385464475

 

I assure you that a far more experienced person than me will be along to offer constructive help.

 

All the best

 

Regards

 

HTA

Edited November 27, 2013 by HTA
Wrong link

[Ell-enn]

Hi there, you need to fill in the affixed budget sheet (it's the one we use in repo cases) and then read it out to them over the phone - do not be bullied into agreeing to their idea of a budget - tell them you intend to vigorously defend their claim for repossession and will be presenting this budget sheet to the court.

[optomist1]

Thank you so much Ell-enn - I'll fill in the sheet now and report back ..... Thank you for your moral support HTA!

[optomist1]

Hi I filled out the sheet - very helpful... I'll continue to use it to monitor my budget.... I phoned NRAM and to cut a long and tortuous story short, they've agreed to suspend the court action for 3 months and accepted a payment which amounts to a third of my salary. The deal is I sell my house within 3 months....this is OK (selling the house) because I'm trying to sell it anyway. I nearly lost it when they initially refused to negotiate BECAUSE my house is on the market! I told them in June that I was going to sell it and they didn't say this was a problem. Today they said their policy is that I should only have put it on the market as part of an agreement with them and as it hadn't sold yet, this negated any chance of 'forbearance' on the basis of selling the house.... ?!? - really confusing. I said they hadn't explained this to me when I told them I was trying to sell it and they said they don't explain their policies! - which is true - they don't! They really twist things you say too. The chap asked about feedback from viewers.. I said there hadn't been anything specific (meaning there isn't anything in particular about the house itself which seems to be putting people off) ... he took this to mean that I hadn't bothered to talk to the estate agent...so cynical. Anyway, I have a bit of breathing space, thanks entirely to your practical help and moral support. I wouldn't have had the confidence to negotiate/argue with them without your feedback - I really can't thank you enough....except... um...anyone want to buy a nice little house in rural Shropshire...??.. bargain price! Again, many thanks.

[Ell-enn]

Hi, are they going to put all that in writing to you ? If you already have a court date you need to ring the court and check they have cancelled the hearing, they may be trying to be sneaky and not cancel it which means if they go to the hearing they can ask for a suspended possession order and you won't be there to defend.

[optomist1]

Oh blimey ... I'm pretty sure they did say they'd write to confirm something... I think it was the payment agreement rather than deferring the court hearing as such. To be honest I was so exhausted after over an hour on the phone and then had to dash off all smiley for the school pick up - I'm only now reflecting on what happened today. I will check the court. Now you've said this, I think I'll also write to them confirming my understanding of the position...what do you think?

[Ell-enn]

Yes, it would be a good idea to write to them - along the lines of " I refer to my conversation of (date) with your (dept) and thought it useful to confirm my understanding of what was agreed, this being as follows: " then list the points agreed numerically. The finish off by saying " I am pleased you have been able to assist me with an arrangement to clear the arrears in line with the Civil Justice Council Mortgage Arrears Protocols". In one way you're thanking them and in another you're letting them know that you understand your rights perfectly

[optomist1]

Thank you - again, very helpful. I'll send something along these lines and use the wording you suggest. Thanks

[Ell-enn]

Let us know if the court hearing has been cancelled and if you get a letter from them comfirming what was agreed.

[Scots1]

Good luck dealing with nram, they repo'd our home yesterday despite us paying toward the arrears and offering to pay more, they also had a near market value offer from a property investement company which the declined, they are nasty vile people. Fortunatly we have moved into an amazing new home and can start to put this all behind us x

[Lea_HTH]

Your biggest issue is the end of your mortgage term is only 4 months away. Most lenders will expect repayment by the end of the term at the latest, or the sale of the property to ensure they get their money.

 

Most mortgagees allow a run on period of up to two years after the mortgage term is over, for you to repay the loan and arrears, but they do not make this public knowledge, and they are NOT obliged to offer it. If they go to court, they WILL get a possession order once the term is over, as the court has no jurisdiction to order anything else at that stage.

 

Your best bet is to attempt to remortgage/restructure now, not wait until March 2014. Admittedly, with arrears, you may find it hard to remortgage and may need to sell instead.