Mortgage arrears help/info required?

[RFC1872]

Hi folks,

 

I am currently in arrears with my Mortgage. The mortgage folk stated they were going to start repossession proceedings, they even passed it to their lawyers.

 

I have responded by submitting a budget sheet with a repayment plan which would clear the arrears in 3 years. I have been paying the mortgage payment and the amount i have proposed to clear my arrears for the last three months. Up until I sent them my budget plan they have ignored me and continued along the path towards the court. Now the first correspondence I get is a letter asking me to contact them to discuss my arrears and budget plan. At the same time they have continued to take from a monthly charge - which they are taking due to not having a payment plan in place.

 

Can I ask if anyone who has been in a situation or is aware of a situation similar to mine to help me by shedding some light on what I should expect from the phone call I need to make on this issue to my mortgage provider by tuesday night?

 

Cheers

[sillygirl1]

Tell them you are dealing with the problem and resend in your budget plan - they will try this every three months to get you to pay more. If it does go to court you can ask for the "Norgan" rules to apply which would considerably lessen the amount you are paying now... Norgan rules mean that you pay a fraction of the debt over the life of the loan so instead of clearing the debt in 3 years it gets cleared in 20 or 25 years.....

[Ell-enn]

Hi there, the fact that you have made a proposal to clear the arrears and have stuck to that arrangement will stand in your favour. If they ask you to increase your payment you need to remain adamant that you cannot afford any more as you have demonstrated in your budget plan. As Sillygirl says, they will always try every 3 or 6 months or so to get you to increase your payments - that is for their benefit, not yours!

 

It is imperative that you do not offer more than you can afford as it will undoubtedly result in you having difficulties in making payments, or missing them and they will then instigate court proceedings.

 

If you continue to make your current payments regularly and they still take possession proceedings, the judge would look on their action as unnecessary and most definately rule in your favour.

 

Stick to your guns, and continue to make payments that you are comfortable with.

 

If you need any further help once you have spoken to them.

 

Kind Regards

 

Ell-enn

[RFC1872]

Ell-enn and Sillygirl,

 

Thank you both for your replies it is much appreciated. What happens to the agreement to pay the arrears when the interest rate falls - do I have to shift any rate reduction on to my arrears payments? I came home to a letter informing me that the interest rate has come down - about time

 

Just to let you know I am putting up a fight on a few fronts and this is one of the reasons your and others support on this forum is so vital.

[sillygirl1]

Leave the payments as they are - after all the arrears were run up at the OLD level, not the new one - I can see where you are coming from on this though.

 

Make sure that when the arrears are clear if any court action has been instigated you need to have a Notice of Discontinuance so they can't go for another lot of arrears using the same court case. This gives you a better position as well as if in future arrears do arise you can prove you stuck to the agreement and cleared them in the time originally stated.

[cokezero]

They are

[RFC1872]

Leave the payments as they are - after all the arrears were run up at the OLD level, not the new one - I can see where you are coming from on this though.

 

Make sure that when the arrears are clear if any court action has been instigated you need to have a Notice of Discontinuance so they can't go for another lot of arrears using the same court case. This gives you a better position as well as if in future arrears do arise you can prove you stuck to the agreement and cleared them in the time originally stated.

 

 

I will just resend my budget plan, I will not be making any phone calls, in my letter I will inform them that 'I will be happy to answer any questions you have and please feel free to write to me with your questions'.

 

Also I dont want to go to court, but I will if I have to. Though will I be liable for their legal charges if they do go to court regardless of my action in putting forward a resonable payment plan?

[Ell-enn]

Hi there, make sure you send any letters by recorded delivery then check on the royal mail website that it has been delivered. Print off the delivery receipt and keep with a copy of the letter you send - you may need to prove you sent it and they received it!

 

Kind Regards

 

Ell-enn

[RFC1872]

Hi there, make sure you send any letters by recorded delivery then check on the royal mail website that it has been delivered. Print off the delivery receipt and keep with a copy of the letter you send - you may need to prove you sent it and they received it!

 

Kind Regards

 

Ell-enn

 

Hi Ell-enn:

 

Thanks, I will make sure that it is sent recorded delivery.

[Goldlady]

Hi, we were in arrears with our secured loan for a long time. We have now paid them off and I have issued a court claim for the 2k of charges they added to the loan. I have already turned down an offer of 1k on the basis that I want the whole lot, but don't worry about those stupid charges as hopefully if things don't change you can get them back.

 

Best of luck

[RFC1872]

Hi, we were in arrears with our secured loan for a long time. We have now paid them off and I have issued a court claim for the 2k of charges they added to the loan. I have already turned down an offer of 1k on the basis that I want the whole lot, but don't worry about those stupid charges as hopefully if things don't change you can get them back.

 

Best of luck

 

Thanks Goldlady, rest assured I will be reclaiming all charges as soon as the arrears are cleared.

[Bona]

With regard to charges if you keep to your payment plan and they insist that they take you to court and the order is for waht you are paying or less you should ask the Judge to make an order that you dont pay the costs as they have been unreasonable incurred by the mortgage company

[RFC1872]

Hi, we were in arrears with our secured loan for a long time. We have now paid them off and I have issued a court claim for the 2k of charges they added to the loan. I have already turned down an offer of 1k on the basis that I want the whole lot, but don't worry about those stupid charges as hopefully if things don't change you can get them back.

 

Best of luck

 

Thank and bet of luck with your charges issue, I will be seeking full repayment of the charges they have applied against my mortgage account once the arrears are cleared;)

 

With regard to charges if you keep to your payment plan and they insist that they take you to court and the order is for waht you are paying or less you should ask the Judge to make an order that you dont pay the costs as they have been unreasonable incurred by the mortgage company

 

I think they know this to be the case as they have stopped their legal proceedings. I think this is what makes this forum so good - it takes some of the fear out of challenging these people. Consumer Action Group Forum = Empowerment.

 

PS Update in my next post:)

[RFC1872]

Ok here is an update and hopefully a conclusion to this post (Though I fear not).

 

I decided to phone them, and yes they just wanted to squeeze more money out of me. They stated that my offer was based on a previous rate of interest and that I should re adjust my offer accordingly. I used the comment a poster above alluded to and that was that the arrears were run up whilst the interest rate was at the higher rate. I suggested that I was happy to make my arrears payments pro rata to what the interest rate would be with the starting point being the current rate - if it comes down they get more if it goes up they get less. It would seem they are not to keen on this idea. I was clear that I would pay my regular monthly payment regardless of the level of interest. Also I would pay £xxx every month towards the arrears - I even stated the timescale involved in clearing the arrears and that I would meet this commitment - but if I came into an extra large sum of money then of course I would use this towards my arrears. Every review they carry out with me from now on will begin from my end with me restating my commitment to maintain the payments towards the arrears as agreed and would be happy to make this payment variable with the variance being linked to any fluctuaction in the interest rate - up or down. Cant see them wishing to agree to a repayment plan which allows me to reduce the arrears payment. But now I will wait to see what they put in writing. I may also write to them confirming the agreement - well what I believe we have agreed. However, I have no doubt it has been recorded and can always call on them to produce it - and it will no doubt match what my actions are.

 

So cheers for everyones advice and support in this issuue.

[Kai-Boshed]

I think the lender knows that court action would be a waste of money as no judge in the land will grant a possession order if you have already proposed and stuck to a repayment plan!! Just putting the squeeze on for sure. Stick to your guns your doing fine

[rory32]

RFC I assume you are Scottish in which case the following may be of interest when dealing with mortgage arrears Mortgage Rights (Scotland) Act 2001

[kennythecelt]

Hi RFC

 

rory's link takes you to the Govan Law Centre. They also have an excellent record in dealing with debt issues and you might find them useful.

 

Remember to keep to the payment plan. Keep us posted and let us know whenever you need assistance.

 

You will get the mortgage charges back!!

 

Best of luck with this.

[RFC1872]

Hi RFC

 

rory's link takes you to the Govan Law Centre. They also have an excellent record in dealing with debt issues and you might find them useful.

 

Remember to keep to the payment plan. Keep us posted and let us know whenever you need assistance.

 

You will get the mortgage charges back!!

 

Best of luck with this.

 

Kennythecelt,

 

Thanks and I will keep everyone updated. This site has been great - of course the site would be nothing without all those who give up time to help others.

 

Cheers

 

RFC1872

[RFC1872]

Ell-enn; sillygirl1; Goldlady; Bona; Kai-Boshed; rory32; kennythecelt;

 

Thanks for your support in thi issue. cheers

[kennythecelt]

Absolutely no problem RFC!!

 

Let us know when you need help with the charges.

 

Best regards, Kenny

[RFC1872]

Hi everyone,

 

Sorry about this:

 

Its round two, I have today received a letter from the providers solicitors saying they are going for a decree. Apparently although their solicitors acknowledge that both the provider and I have an agreed repayment plan in place, and its one that I have kept, its the providers intention to '...secure their position'.

 

I have no intention off defaulting on the payment arrangement and therefore feel their actions are unnecessary. Can I ask that the court cousts are met by the provider?

 

Is this a time to start questioning the charges applied to this account? Though I am going to sit down and see if they have included the charges in the default amount - can I ask for a breakdown of the figure they give in the default.

 

Also what is the position in regards this http://www.consumeractiongroup.co.uk/forum/mortgages-secured-loans/135799-mortgages-compulsary-building-contents.html

 

Cheers in advance

 

PS I am now starting to upload the default notice.

[RFC1872]

Default notices:

 

[RFC1872]

And again:

 

[Bona]

I suggest that you write to them and say that you expect them to pay theres and your costs of the hearing as the court case is not necesary there is case law which I found on the Govan Law center Web site re costs in a case like this

[RFC1872]

I suggest that you write to them and say that you expect them to pay theres and your costs of the hearing as the court case is not necesary there is case law which I found on the Govan Law center Web site re costs in a case like this

 

 

Thanks Bona, I will have a look at the Govan Law Centre WWW site for the case you refer to - though if you have the link could you post it for me if I find it I will come back and post it here. Again cheers.

 

Bona I am still searching the GLC site, still not found it yet, going back to look again. ;o)