Is this how a repo works or am I being conned?

[oharro]

Hello and pre-emptive apologies if this question is not right for this forum!

 

Someone close to me has just announced that they are having their house repossessed by their mortgage company, unless they immediately hand over £25k - no monthly payment arrangement or anything, just £25k right now.

 

They are leaning quite heavily on me to give them the full amount (with the implication that I will be making them homeless if I don't), but as they have a history of being thoroughly untrustworthy with money, and as they know I have recently (within days) come into a little bit of money, I am not sure what to believe.

 

It's a delicate situation (family!), and I'm not in a position to poke and pry and outright ask all the questions I want to ask (for proof, basically) - so I thought I'd ask you guys for advice - is it normal for a mortgage company to suddenly request that amount? Should there have been a judgement somewhere, or a court record that I could see for myself? Would a mortgage company allow the arrears to get that high before taking action? Is this normal procedure for a repossession?

 

 

Thanks for reading, and sorry again if it is somewhat inappropriate to the forum.

[Bandit127]

It is likely that this is the last stage in trying to recover the arrears before proceeding to litigation.

 

For a normal credit account, this would be the default notice where the full amount owing is demanded.

 

For the mortgage they might be demanding the arrears and will usually litigate for that, rather than the full amount (because there is some equity in the security).

 

Personally I would only be prepared to spend money here if:

1. I was prepared to loose the full amount (and prepared to risk them coming back in a few years time for more when the next lot of arrears have built up) for the sake of family.

2. Could find some way to make a charge on their property for the loan. This would need a solicitor and (I am guessing) £700 or so to arrange.

 

It is time for some tough love I think.

 

Start with the hopeless position hey have put you in. Them treating a relative (you) with such a lack of respect (in my mind) is out of order.

[f16]

oharro, Hi and a warm welcome to CAG.

 

I think in your heart of hearts you know the answer.

Your second paragraph more or less says it all. ....

 

If the "boot was on the other foot". Would they be there to "help" you ?

I totally agree with Bandit127

In particular the last sentence.

Be careful and Good Luck

[BornThisWay]

As Bandit has said above, it is normal for a lender to demand the whole of the arrears be repaid before they proceed to court action.

 

 

So without knowing more detail it seems to me that it might still be possible for your relatives to prove to a judge - when it comes to court - that they can pay the mortgage repayment plus something towards the arrears.

 

 

You would be perfectly entitled to ask the borrowers which stage they are in, in this process. If they have been to court, lost and the judge has agreed an eviction date and the only way to stop losing their home is to pay £25K within, say, a couple of weeks - that is one scenario. Another scenario is that the lender have said 'pay the arrears in full' or we are going to court to get a repossession order and an eviction date, then there is still time for your family members to help themselves.

 

 

You are perfectly within your rights, given the nature of their request, to ascertain exactly which of these scenarios - and indeed others - they find themselves in.

[citizenB]

With all due respect, if someone is asking you to part with such a huge sum, then you are perfectly within your rights to "poke and pry" ?

 

I think Bandit has given you sound advice

[JoeyJoeC]

Money and family doesn't mix. Been there, left me with a £15k debt.

[queensclose]

if they cant afford the mortgage how they gonna pay you back

[lollyjoy6]

This is emotional blackmail.My family were evicted last Nov from our property despite My father living in his home of 50 years on his own not once did I ask him to bail us out.My father kindly gave us a roof over our heads as a last resort for 16 weeks until we were rehoused by the local council Homeless.Do not hand over any money unless you get proper advice on this.I know one of my Husbands relatives borrowed money from another close relative to help buy a property but it was all done above board at a solicitors with interest added on,when the property had to be sold there was a huge argument about paying it back to the relative who'd provided the loan in the first place the relative who'd sold it didn't want to pay back the money.Your Family need to tell you exactly where they are at with their mortgage lender etc.The mortgage lender informs the local council of any repossession orders etc if they have dependents then the local council will look to rehouse as soon as possible if they are evicted.Dreadful to put such unwanted pressure on you.

[sequenci]

You should instruct this person to ask the court to make a 'suspended possession order' at the repossession hearing. This is where they can pay the regular mortgage instalment plus a little extra towards the arrears each month.

 

I wouldn't lend them the money.

 

Here's a useful guide: https://www.nationaldebtline.org/EW/factsheets/Pages/G2%20EW%20Mortgage%20arrears%20guide/Default.aspx

[oharro]

Thankyou so much for all the replies - it really means a lot to get good, outside perspectives - sometimes it's hard to get a real handle on something when you're so close to the fray!

 

 

I tried to ask more about their situation; I was originally told they had been to court and that was all over, but then that changed to they were going to court at some unspecified point in the future - but still no dates or paperwork, or explanation of what the £25k was for (and certainly no hint that they intended to pay me back!). It all felt cripplingly uncomfortable, especially as I've had my credit trashed already by taking out loans in my name for them which they swore they would pay monthly for, but never did.

 

 

Then I had a bit of a reprieve in that it's turned out that the investment vehicle I put my own funds into doesn't have an 'early withdrawal/drawdown' feature, so I could say in good faith that I simply can't do what they ask anyway. It all went very quiet after that.

 

 

I'm going to pass on the advice about a suspended possession order - if there really is a court hearing in the works then that definitely sounds like the best thing they could bargain for - thanks again for listening!

[sequenci]

Hello again,

 

If it has already been to court, a suspend possession order is still possible - you apply to the court to have one agreed. I help people in repossession cases for a living, I absolutely advise you to steer well clear.