Halifax/Birmingham Midshires - repeated warrants/eviction/repo attempts **RESOLVED AGAIN**

[FTMDave]

Open.

[WA1306]

Hi,

Unfortunately, I am back again. Just to recap, I had around £12000 arrears between September last year until February this year when had the court hearing. I managed to reduce the arrears to around £2000 before the hearing in February this year. Based on this lender didn't attend the court and judge adjourned the hearing in their absence with order that lender can recommence the legal proceedings again within 12 months if needed. 

Unfortunately, following month in March, I lost my job. Still unemployed and couldn't make any mortgage payment since March.

All this time , mortgage interest rate rises many times and my monthly contractual payment increased from around £1400 to now at £2800. Now my arrears stand at £20000 in 5 months missed payments. 

Birmingham Midshires took me to the court, and I had hearing today. Lender's solicitor asked for outright repossession.  Judge asked me if I have to say anything.  I started saying that solicitor is wrong in saying that I made lump sum payment last time to reduce the arrears. I overpaid every month from my salary. Also, that I live in the property with wife and children age between 2 and 11. As soon as I said this, judge stopped me and said she is using her discretion to adjourn the hearing due to children living at the property. 

Lender's solicitor was very uneasy and convinced the judge not to use the discretion as mortgage is based on affordability and not on whether children live at property or not.

 

Judge agreed and decided not to use the discretion. I requested judge to grant the suspended repossession order not outright repossession. 

To this the lender's solicitor asked the judge for outright as I am currently out of work and don't have solid payment plan with evidence. 

I mentioned that I have been working as software engineer for 23 years. This is the worst time in my field of work that I couldn't find any work since March. I have never been unemployed more than couple of weeks before and hopefully should be able to find work again. If 28 days repossession order is granted,  o won't be able to focus on finding job.

In the end, judge ordered not the 28 days but 56 days repossession order. 

I don't know where I stand now I can't afford to lose home with children. My work situation is I am still not employed but this can change any time and my circumstances can improve. Summer was quite time for jobs but it will pick up after summer holidays. 

I am on Universal Credit since April and should have been helped by local authority to pay interest up to £200000 on interest only under Support towards Mortgage Interest scheme by government. . Mortgage is currently £360000. I am going to ask department of work and pensions why they haven't done anything although I told them about mortgage issue. 

Can you please help with can I request court to set aside this order so that I can focus on job search and interviews rather worrying about finding place after eviction?

I want court to consider the circumstances like high cost of living,  unemployment rate at highest level, and interest rate increased during all the time I couldn't make mortgage payments. 

Can I ask local authority to pay interest on mortgage backdated since I joined the Universal Credit?

Please help.

Forgot to mention, I was unfortunate that legal advisor at court was not available today. If legal advisor was available, may be he could convince the judge to use discretion and adjourn the hearing as judge initially chose to but got convinced by other party not to use.

Edited September 6, 2023 by WA1306

[honeybee13]

Hi.

It's a shame you didn't keep us updated, @Ell-enncould at least have helped you to prepare. Hopefully she'll see this and advise you.

HB

[WA1306]

Many thanks for including @Ell-enn into this again.

I wish I had taken advice. I am so much stressed out these days being unemployed but I understand burying head won't solve my problems. I need to stop this repossession somehow to keep roof above my family's head.

I also understand that may be it's too late in the process but @Ell-enn or other experienced members, is there a way out from this? 

[Ell-enn]

Hi, it's a shame you didn't ask for help in preparing and that there wasn't a legal advisor available at court.   Unfortunately the only way to challenge the judge's decision is if they made an error in a point of law  in their judgement which it doesn't sound as if they did.   If you managed to get a job and could prove the job offer, start date and salary you might have a chance to go back to court and show you can pay going forward - it's not guaranteed and it sounds like your lender is pretty set on possession of the property.

Did you ask for time to sell ?

 

[WA1306]

Hi Ell-enn, many thanks for contacting back. I am genuinely sorry for not being able to take your advice earlier and put myself into this situation. 

I didn't ask for time to sell the property as I am trying to keep this. I have contacted the department for work and pensions this morning to ask help with support for mortgage interest. 

If they start paying the interest,  my current mortgage is interest only. Any chance I can still apply to set aside the order based on new payment proposal?

Many thanks for helping me out. 

[WA1306]

@Ell-enn Hi Ell-enn, I have been focusing on finding the job but still no luck despite several years of experience in my field. I am still hopeful that I will manage to secure role soon.

When repossession was granted,  I didn't take any proof with me to show:

 

1) I am applying for jobs

2) neither submitted proof that children are involved

3) no proof was submitted that I will get support from government under the support for mortgage interest scheme. 

I have been told by department if works and pensions that I am eligible for support for mortgage interest under this scheme and payment will be backdated from mid August. 

Also, Judge wanted to use her discretion to adjourned the hearing on the basis that children are involved but the lender's solicitor objected. 

Under Section 6A of the Housing Act 1988, as amended by the Homelessness Reduction Act 2017, the court must consider the impact of an eviction on any dependent children living in the property. This means that the court should take the best interests of the children into account and consider whether it is reasonable to delay or suspend the repossession order to provide alternative accommodation for the family.

While it's not an automatic adjournment, the presence of children can influence the court's decision, and they may consider postponing the repossession or exploring alternative solutions to protect the welfare of the children.

Apart from above 2 grounds,  if I manage to pay half of the arrears, do you think I can stop the repossession?

I will really appreciate your help as I am very distressed and not able to focus on finding job due to constant stress. Please help. 

[Ell-enn]

Hi, have you received confirmation of the repossession order from the court ?  

[WA1306]

No, I haven't received any paperwork from the court. 

Shall I contact the court to request copy of repossession order?

[WA1306]

@Ell-enn Hi Ell-enn, 

Just received the court order confirming repossession granted to the lender or or before the 1st November. The order also says that if we don't vacant the property by this date, the lender can ask the court to send the high court bailiffs without hearing. 

Can you please help with how to proceed? I am planning to call the lender's solicitor to offer payment of £8000 as well as informing them that government has sent me the support for mortgage interest forms, which I have signed and now need to send to lender to sign. They will make backdated payment since mid July. This will help to reduce arrears as well as payments will cover future mortgage payments. 

 

I am now in real panic and can't think to be homeless with 5 children age 2 to 11. Can you please assist in this matter ? Many thanks. 

 

 

 

 

[Ell-enn]

The lender could apply for an eviction warrant if you haven't left by 1st November which would involve bailiffs, but you can apply to the court for a hearing to stop the eviction - we can help with that.  However you need to start being proactive in getting things in order so we have something to base a defence on.

You should pay the 8,000 as soon as possible so we can show evidence to the court and you need the proof of mortgage interest payments also.

Any evidence of applying for jobs would also be helpful

[WA1306]

Hi @Ell-enn

I truly appreciate your support. 

In a state of panic, I reached out to the lender's solicitor this evening, offering a payment of 8,000 and explaining my request for assistance with mortgage interest payments backdated from mid-July or August. I also discussed the need to send the required paperwork to the lender to complete their part of the form.

The main purpose of my call was to ensure that they would consider the proposed payment arrangement. The idea is to contribute the 8,000 toward the arrears, which would decrease further with the backdated payment. Going forward, I intend to maintain the contractual payments along with an additional amount to reduce the arrears. My primary concern was to avoid a situation where I'd be financially strained, paying them 8,000 and still facing eviction.

I was informed that I needed to make the 8,000 payment before any arrangement could be considered. Furthermore, I was required to complete the income and expenditure form they had sent. I was instructed to make the payment tonight, wait 24 hours for it to clear into the lender's account, and then call back on Thursday.

I had no alternative but to agree to these terms, but my fear is that if they don't accept the payment arrangement, I could find myself homeless and 8,000 short of the required funds.

Regarding applying for jobs, I have been actively applying for jobs on LinkedIn. I can print out list of applied jobs. The judge in repossession hearing also questioned why I didn't submit any evidence that I am applying for jobs. Hopefully once I am back in work, I should be able to pay off the remaining arrears much sooner. I can also provide proof of income for 3 years prior to being out of work to show my earning potential. 

Do you suggest that I should go ahead with the payment to bring the arrears down and call their solicitor back on Thursday?

Once again,  all your help is much appreciated. 

Edited October 17, 2023 by WA1306

[Ell-enn]

Hi, you should most definitely make the payment asap - and get printed proof from your bank account.

You also need to call the lender and ask for the address and name of the exact department to send the mortgage interest payment forms to.   If you can scan and email them to the correct email address for that department then all the better.  If you have to post them then you should take a photocopy beforehand and send by special delivery so they have to sign for them (think it costs about £7 but will be worth it), make sure you keep the postal receipt in a safe place.

Let me know when you have made the payment and I will draft a letter for you to send to the lender with your offer of payment arrangement.  I guess you'll have to complete the income and expenditure form they sent (are you able to scan the form and post on here so I can see what info they want?)

You need to be on top of all this as you only have 2 weeks to get some agreement in place in order to avoid having to go to court to defend an eviction order.

 

[WA1306]

Hi @Ell-enn,

Thank you for taking time to help me. 

I have made the payment for 8,000 to the lender's account. 

Attaching here the income and expenditure form that lender's solicitor sent me. 

When I called the solicitor yesterday, I agreed that I will call back on Thursday to go through the completed income and expenditure and discuss the payment arrangement. 

Before I send any letter in writing to the lender, do you suggest I should go ahead with the call tomorrow as agreed and then send the letter afterwards to make sure all is agreed in writing?

Thank you so much for helping me out. 

IandE-45.xls

[Ell-enn]

OK,  under the Benefits section make sure you put a line in for the mortgage interest support (do you know how much it is?).  

Also - make sure the income you list will cover all the outgoings and debts - if it doesn't they'll say you can't afford what you're offering.   If you have to forego some of the flexible or other unnecessary outgoings then do so.  You need to complete the form before you call them so they can't trip you up - you just read off the figures you've entered.  Don't let them fluster you and don't agree to anything over the phone - tell them you'll make your offer in writing by special delivery (get the correct address or email address).

Stay strong

[WA1306]

Many thanks for the points haveraised @Ell-enn. I will make sure to complete the form before call,  will make sure my income covers all expenditures for future payments affordability and request to agree in writing. 

I will keep you updated. 

[WA1306]

Hi @Ell-enn, 

I wanted to check with you before I email the income and expenditure form back, I have surplus income of around 500. I am planning to offer 100 towards the arrears. That will leave with 400 surplus amount. 

Do you think 400 surplus will be fine in case if there are any items they suggest I haven't included or should be spending more? I believe I have covered everything. 

 

Please suggest. Many thanks 

[Ell-enn]

If they see you have 500 surplus they will expect you to pay that towards the arrears so you need to see where you might need some emergency funds.

How many years are left on the mortgage? - 100 a month might not be enough to clear the arrears in a reasonable time.

[WA1306]

I think 6 years left on the mortgage. 

My intention is to repay the arrears as soon as I am back to work, hopefully be able to repay arrears in next 12 months. Last year I paid 11,000 in around 7 months period. There is track record of that. I fell into arrears again this time due of being unemployed for 8 months. 

As only 6 years left 9n mortgage,  I an trying my best to move mortgage somewhere else after 12 months of arrears free.

[WA1306]

Hi @Ell-enn

My apologies for the delayed update. I have lots of issues going on. 

I really appreciate your help,

I have managed to come to payment agreement with mortgage lender's solicitor. They asked me to offer additional payment towards the arrears out of the surplus amount. I offered 150, they refused.

I insisted them to tell me what is accepted but was told they can't tell me. I then offered 250. They refused that also.  I was very annoyed because this was pressurising me to offer what could be difficult. They told me to seek legal advice if I can't afford.

Then I offered 300. This was accepted. 

I was told that they are sending this to paralegal team.

I have been told there will be no further legal action as long as I stick with the agreed payment plan.

My focus is to be back to work somehow. 

I really appreciate your help I'm this matter. 

[Ell-enn]

Hi,  glad to hear you have managed to come to an arrangement but I knew they'd pressurise you into paying more out of the surplus - I assume you told them you had that amount to spare?    They will have calculated how much was needed to be paid each month to clear the arrears in the remaining 6 years of the mortgage.   

You must ensure you don't miss any payments going forward or they will simply issue an eviction warrant without notice.    Have you had confirmation of the DWP mortgage help ?