Can I delay the repo to sell it myself

[chris600uk]

We have a suspended reposession order on our house from early this year.

 

We got the repo order suspended because, we promised to keep up the repayments.

 

We reduced the price to what is owed + the sale fees.

 

 

Haven't had the slightest interest from any buyers, and we are now definitely in negative equity.

 

We want to sell at auction and deal with the outstanding debt afterwards.

 

Our money supply stopped and we can no longer make the payments.

 

There is an early redemption penalty of £18,000 which expires in Jan 09 - and the earliest local property auction is about then too.

 

Can we delay the repossession until then and handle the sale ourselves to get the best possible price?

 

 

 

 

Lender is London Mortgage

[Ell-enn]

Hi Chris, when did you stop paying the installments under the court order?

 

Given that we are now in October, and depending on how long it takes the lender to start eviction proceedings, when you get an eviction notice you could apply to the court to sell the property yourself. You might just be able to hang on till January - depends on the lender of course. Are you not able to make any payments at all?

 

Kind Regards

 

Ell-enn

[Bona]

We applied under the Law and property act and got 6 months to sell we had a repossession hanging over us with a number of eviction dates prior to the last order that we had conduct of the sale

[chris600uk]

No Ell-enn not now, we've been kept going by the family, all we could manage would only be a token payment now.

 

 

 

Wow, how did you do that Bona?

[chris600uk]

Oh sorry, didn't read that bit - we've just stopped.

 

We're in the process of asking the Lender to agree to selling for less than the mortgage debt.

[chris600uk]

when you get an eviction notice you could apply to the court to sell the property yourself.

 

 

Are you talking about appointing a reciever under the Law of Property Act 1925? Just googled it

 

Chris

[chris600uk]

Right now the auctioneers think our house would sell for between £50k - £70k below the mortgage debt (including the £18k redemtion penalty).

 

Each month we don't pay an instalment, the debt will increase by a little over £2k. but if we can keep control until a January auction, the penalty should have expired, reducing our total debt by £18k.

 

That's the plan so far - we've written to the lender and they want a Chartered Surveyors valuation, details of 3 similar properties in the same area(there aren't any), and details of our income and expenditure and the estate agents records of marketing the property.

[Ell-enn]

Are you talking about appointing a reciever under the Law of Property Act 1925? Just googled it

 

Chris

No, I mean you can submit an N244 to the court asking for a hearing to consider you keeping control of the sale.

 

That's the plan so far - we've written to the lender and they want a Chartered Surveyors valuation, details of 3 similar properties in the same area(there aren't any), and details of our income and expenditure and the estate agents records of marketing the property.

And who's going to pay for the CS's valuation?

[chris600uk]

N244 !

 

Do we wait until the eviction notice?

 

Or should we do that now?

 

 

 

I'll get hold of the money to pay for the survey.

[Ell-enn]

Hi, sorry I should have explained better - an N244 is the number of the court service application form to ask for a hearing at court. It is usual to apply after receiving an eviction notice to ask for suspension of eviction, but you can apply at any time time for another reason i.e. to have the terms of the suspension order changed.

 

When did you stop making payments under the previous suspended order? how much are the payments?

 

Ell

[chris600uk]

£2255 monthly

 

and we stopped paying this month

[Bona]

Ok we lost apossession hearing at an appeal in county court we appealed to the high court had the repossession cancelled so we could sell the property the High Court Judge said we were to go back to the Chancery division and make an application for an order that we had control of the salew rather than the mortgage company this we did we also had a clause that if we gave MC a months notice no ERC we sold after auction and it was 19 days they charged us erc but we got it back

[Ell-enn]

OK, if you stopped paying this month it will probably be the end of the month before their system kicks in, then there is a few weeks while they get round to asking for an eviction - the notice can give anything between 2 and 4 weeks notice. You could then put in an application at court to ask for the eviction to be suspended while you sell the house. So you might make it to January after all.

 

The reason I asked who was paying for the CS report was because it might be better to pay that money to the lender to stave off the eviction notice for another month, but I don't suppose the report will cost £2255?

 

Ell-enn

[Bona]

Heavans what is your mortgage ours was huge but it was only at the very end that we were paying that amount

[chris600uk]

£300k plus £10k arrears plus £18k ERC which expires Jan09

[chris600uk]

I don't suppose the report will cost £2255?

 

Ell-enn

 

I hope not:lol:

 

I'm expecting it to cost around £350-375

[chris600uk]

OK, if you stopped paying this month it will probably be the end of the month before their system kicks in, then there is a few weeks while they get round to asking for an eviction - the notice can give anything between 2 and 4 weeks notice. You could then put in an application at court to ask for the eviction to be suspended while you sell the house. So you might make it to January after all.

Ell-enn

 

Thanks Ell-enn,

 

We know we'll have a large debt outstanding but at least we'll stop building up debt and council tax bills, which are over £2k a year!

 

Then we can start all over again!

[Rachie1973]

Thanks Ell-enn,

 

We know we'll have a large debt outstanding but at least we'll stop building up debt and council tax bills, which are over £2k a year!

 

Then we can start all over again!

 

Its true that you can start again but be prepared for alot of grief as well. You need to mentally be very strong to deal with the fall out from repossession.

[chris600uk]

What fallout do you mean Rachie?

[chris600uk]

Whatever it is, it'll have to be pretty bad to match what's already happened to us over the years - we've bounced back every time, although I'll readily admit that as we get older it gets harder.

[Rachie1973]

We lost our home Chris, and it was things like finding alternative accomodation, bailiffs hitting us for debts like council tax etc. Sometimes it never seems to end.

[chris600uk]

I saw this as a possibility in mid 2006, and there was nothing I could do about it, so we've had time to get used to the reality of it, and make preparations.

When the time comes we'll have somewhere to go.

[chris600uk]

I wish I'd known about this site then, it wouldn't have stopped us going through hell, but at least we wouldn't have been so alone, and we probably wouldn't be facing debts that could reach £100k if things don't go our way, and £50ish if they do.

 

Timing is everything.

[tonycee]

Have you considered Bankruptcy chris ?

[chris600uk]

Yes Tony I have; I see it as the last resort, but it's definitely an option.

 

Back in mid 06 I recognised that our position was vulnerable financially, and we made plans to get out - but a private legal action froze all our assets and put our lives on hold.

So while the legal stuff rumbled on we had to watch all our money disappear while we paid solicitors and barristers, mortgages, racked up council tax bills, and couldn't earn, although I took a quicky 2391 and became a sparky, which kept food on the table so we could keep fighting.

By the time it was over the property markets decline meant we had little equity left, all we had was mortgages - a double whammy!

Anyway now I can see the end of all this at the start of 09.

Rachie's right, it can seem endless.

 

Then we'll start again - it's a bit more difficult, and we're older, with a young child to bring up. But I'm not giving in unless I have to, and if I do I want it to be at a time of my choosing, after I've made preparations.