At wits end...Repossesion advice required

[MadRadders]

Hi all

 

Due to divorce and my ex husband stopping payment of his half of the mortgage, we got into arrears and the bank filed for repossesion.

 

We went to court on 28 February 2008 and we were granted until 1 June 2008 to either sell the house or hand back to the bank. However the Judge did say if we found a buyer and needed extra time we were to apply to the courtl.

 

Our house was on the market for 210K and I finally managed to find a buyer and accepted his offer of 160K ( the mortgage owed to the bank is just under 114K) Having secured a buyer I contacted the court to apply for more time and they told me to contact the bank, which I duly did. The bank do not want to know, despite my solicitor writing to them and nobody seems to know anything about the extention the judge said could be granted.

 

Also, in February, the sum the bank asked for was just under 114K but recently I have received a letter from the bank and this sum has increased to over 117K with no explanation.

 

I really am at my wits end, the sale is still progressing.......surely it would make more sense for the bank to let me sell??

 

Can anyone help?

[Ell-enn]

Hi there, it must be a very worrying time for you - however, the good thing is you have found a buyer. You can apply to the court on a N244 form, requesting a hearing to ask the court for more time to complete your sale. If you can show the judge that the sale is in progress you should have no problem.

 

If you need help with this form let me know. You can download it here: Her Majesty's Courts Service - Home. Select Forms and Guidance from the menu on the left hand side and enter N244 in the box. You can then download the form in pdf.

 

Kind Regards

 

Ell-enn

[honey5]

subbing madradders, i can honestly empathise with you as have recently found myself in the same position as yourself, and worry isnt the word for it with 3 little ones at home.

wishing you the very best of luck with the sale, i know youre in safe hands with Ell-enn (if you take a look in this forum http://www.consumeractiongroup.co.uk/forum/mortgages-secured-loans/ you will see the great advantage of being apart of CAG )

 

honey x

[I've got no money]

Can I just clarify exactly what the order of the 28th of February was - was it that the claimant was granted possession suspended to the 1st June exactly what does the order say.

[jannercobbler]

Mortgage Repossessions

 

Both freehold and leasehold owner occupation can, and frequently will, be subject to a mortgage. The mortgage deeds contain a variety of terms which usually states that when the occupier falls into arrears with the repayments that the lender has the right to evict the occupier and sell the property.

 

Demand for Arrears

 

Before legal proceedings are started, the lender will normally issue a formal demand for all the arrears to be paid. They are not obliged by law to do this, but in practice the Court will not look kindly upon a lender who has not given the occupier a chance to bring their arrears up to date.

 

The lender cannot evict the occupier without an Order for possession from the County Court. The Court is not obliged to grant the possession immediately and has the power to grant a suspended order for possession on condition that the occupier continues to pay current instalments and a fixed amount off the arrears.

 

Suspended Possession Orders - Homeowners

 

The Court will only exercise this discretion if it is of the view that the arrears can be cleared in a reasonable time. (Administration of Justice Act 1970, s.36; Town & Country Building Society v Julien, 1991). If it does not think this can be done, then the order will be final. This will usually be suspended for at least 28 days to give the occupier time to make alternative arrangements.

 

Reasonable Time to Clear the Arrears

 

There is no formal definition of reasonable time. Until recently, the courts had normally considered one year a reasonable time in which to clear the arrears (Cheltenham & Gloucester B.S v Grant, 1994). It has now been said that the Court should take as its starting point the full period of the mortgage. In most cases individuals would probably only need to spread their arrears over one to two years which the Courts are likely to consider as reasonable.

 

Need for Consent

 

It is really important that an occupier experiencing difficulties informs the lender . Work out how much you can afford to pay towards your arrears and put your proposals in writing to the mortgage company. The clearer the proposals, the greater the chances of success. The larger, more reputable companies do not as a matter of course, want to see occupiers evicted and the properties sold. Their money comes, after all, from keeping mortgages in existence and receiving interest on them.

 

I have personally helped a Friend use the above in Court (on the Day before the Balliffs were due) The Judge was going to refuse but we mentioned that we would appeal, and the Judge finally agreed to suspend possession for 3 months so my friend could sell, although they had to make some payments during that time.

 

regards

 

JC

Edited June 18, 2008 by jannercobbler