F&F secured loan with Elderbridge (old First Plus/Barclays) - coerced debt and selling house

[Mike_hawk]

OK, will try to get back on here later... one point to note is that you've left it too late to serve on the other side. It'll probably be a case of stuffing a copy in the ushers hand and asking for it to be slid under the DJ's nose before you go in.

[Myfamily]

Yes, I know. have had the christmas from hell and just couldn't face it till the last few days, got a shock from eversheds with their bill of about 30K! and just panicked me. We will be there early tomorrow anyway and make sure she gets it before the hearing.

[Mike_hawk]

What was the original term/monthly payment at execution and how many months left?

[Myfamily]

original term was 300 months, got 209 left.

[Mike_hawk]

What was the initial monthly payment prior to any interest rate increases?

[Myfamily]

£843.31

[Mike_hawk]

Do you have a rough idea of how many months you serviced the loan payments in full and what the average payment was?

 

Also how many months you paid reduced sums and how much?

[Myfamily]

ooh, that's a hard question to answer simply. The contactual payments went up and up but I only paid reduced amounts from May 2011, 1 year at £600 and then 6 months at 210 and then £500 from then onwards to date.

 

I have had a word with my IFA and he has pointed out that they have not calculated correctly, they should have used the rate of 9.06% as stated on the loan agreement but they have used 9.4% which is the APR (apparentely this is incorrect.)

 

So I am going to state this and also state that they were 3 weeks late in providing a proper statment of account that was ordered by the judge. It makes no sense, they have given two different figures on the same witness statement and I have no idea which is correct, it is basically not in a format that is easily understood I don't think even the judge is going to understand it!!

 

I'm going to be cheeky and askfor the claim to be thrown out or failing that, ask that they remove all interest from the loan and deal with it on a capitol only basis (apparentely this has happened before with a different lender and case)

 

What do you think?

[Mike_hawk]

The arrears just don't seem correct, I noticed in an earlier post that you were paying £900.00 and more from very early on. An overpayment of say £60.00 per month for the first 60 months would reduce the running balance by circa 5k vs the term balance.

 

12 months at £600.00 would show a deficit of circa £3000.00

6 months at £210.00 would show a deficit of £3780.00

 

Without knowing how it controls the arrears (assume a separate pot encumbered with contractual interest?) a simple calculation appears to show that you did not come into arrears until at least Aug/Sept 2012 and possibly later depending on your earlier overpayments.

 

I think if you can convince the judge that on the face of it the calculations are inaccurate she may be persuaded to order the other side to sharpen its pencil and try again.

 

Not sure which case you refer to?

[Myfamily]

Hi Mike,

 

Yes, my highest payment went up to around £948!! so that's over £200 a month overpaid! No I don't think the arrears are right but they've not explained their figures at all, which is why I'm having a hard time working it out.

 

I am basically going to do what you say and try to convince the judge that what they have provided is crap! and they are basically taking the mick too! (obviously I will phrase this much more delicately!)

 

I just cannot work out where they have got any of the figures from, it makes no sense and I don't think it's fair that I should just have to take their word for it.

[Mike_hawk]

Don't you mean £100.00 overpayment? There's plenty of calculators on the web, MSE have a useful one... Google mortgage overpayment calculator, type in your details and print a copy off for the judge. Its not for her to get her calculator out so it would seem sensible to provide her with something tangible to focus her attention on.

£100.00 per month over 60 months would result in an 8k difference vs term

[Myfamily]

sorry yes you're correct. I will check out the calculator - thank you!

[Mike_hawk]

What time is the hearing tomorrow?

[Myfamily]

2pm

[Mike_hawk]

You've got all morning to put something cogent together then.

Have a look at the following link, may assist you with understanding why the other side should not be granted relief from sanction http://www.stonechambers.com/news-pages/04.11.13--article--relief-from-sanction-post-jackson---ravi-aswani.asp

[slick132]

Even though it's late in the day, I really think you should ask the other side to agree to an adjournment under CPR so you can verify the figures and check if the recalculations are correct.

 

[Myfamily]

Thank you Mike, Will get to bed now and get up early and have a look at that in the morning - thank you for all your advise today

 

Hi Slick, I'm sorry which part of CPR would I use, I'd better google that, (not legally minded!) Thanks

[Mike_hawk]

CPR1.1 again mf http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part01

 

In effect you'd be asking the court to consider an adjournment without sanction (CPR3.9) as the claimants non compliance to the interim order has prejudiced your position and frustrated your attempts to verify its calculations.

 

The judge may get peed off even if the parties agree, and its still a very real possibility that she will dispose of the case tomorrow.

[Mike_hawk]

Any news......... good, bad or downright ugly?

[citizenB]

Yes, can you please let us know what hte outcome was ??

[Myfamily]

It's bad

 

They got a suspended possession order and I have to pay £903 per month (including the amount to clear the arrears) but the worst part is that they were awarded costs!.

 

I don't know what to do

[Blossomandebony]

Hi MyFamily,

 

Sorry to hear the news but the Suspended Possession might not be too bad a situation as long as you can manage the payments of £903 per month. They are tied to the agreement too so can't start to apply pressure for more money.

 

What costs were awarded?

 

I would start a claim to recover the charges they have added to your account over the years. Once you add interest to it it will probably make a tasty sum. Or if you don't want to go through the court route, you can firstly complain through the FOS.

 

Cheers, BAE

[Mike_hawk]

Hi mf

 

Sorry to hear the bad news

 

Were costs to be assessed or summarily judged on the day?

[Myfamily]

Hi,

 

Thanks Blossom, I am not too bothered by the SPO but the costs, I am scared of now. will have to think about what to do.

 

Mike - to be honest I'm not sure, she seemed to just say that the costs we my responsibility, I supposed I will find out when I get the judgement in writing a few days from now.

 

To say I am absolutely gutted is an understatement!! the last letter I had fro Eversheds said the costs were estimated at £10k - £15k so how it got to £30k, I don't know.

Some have said to go bankrupt but I think I will lose my job if I do! I have worked there nearly 20 years and don't know what else I would do!!

[Mike_hawk]

Let us know when you have sight of the judgment