#repossessions : Santander - Possesion Claim 3rd May

[jjthejetplane]

Hello,

I have Santander looking to reposses my property with a court date set for the 3rd May 2011. I'm looking to get a bit of perspective and advice on the best way to deal with it.

 

Background:

I was made redundant in January 2010. Applied for loads of jobs but didnt get anywhere. I then started a business with a friend - long story short, the concept, online software and marketing took a little bit longer than anticipated to get up and running.

 

In June 2010, I agreed with Santander to short pay the mortgage (normal monthly amount is £1480, instead i paid £1000).

 

In January because the arrears amounted to more than 3 months, repossesion claims started.

I met with their counciller (which wasn't arranged - he just showed up) and asked them for more time to pay the reduced amount whilst the business goes live - which they didnt agree to.

 

Whilst the business isnt generating any income yet, i've made some very important collaboration deals which i'll see the benefits from in a few months time.

 

 

The business is viable, but will take a little more time to generate cashflow - at which point i'll be in a good postion to clear the arrears in one go - i've tried explaining this, but again Santander only want to know if im going to pay the full amount and something towards the arrears.

 

My question is do i stand a chance of getting this possesion order put on hold? If so how do i best argue it? It seems to me that Santander are being a little intransigent, given that i've done my best to pay as much as i can.

 

Thank you in advance

[dcahelp]

Hi,

 

are you on interest only? This alone could reduce your payments!! Have you paid anything towards your mortgage? They cant refuse to take a payment although will try to make you up said payment?

 

The 3rd may is that court date or eviciton date, ( you may have said already, sorry if I missed it1!)

 

My info is just from having a read around the forum so give it a go, you might find something that helps....

 

Failing that Ell-enn is usually one that helps or Lea-HTH is another one....

[Lea_HTH]

How much are the arrears?

 

How long is left on the loan term and is this a first charge?

 

How much is outstanding?

 

What is the property worth? (i.e. is there any equity in the property?)

 

Are there any other loans secured on the property?

 

What are you able to afford to pay currently?

 

How long do you expect to shortfall the current mortgage instalment?

 

I appreciate you feel they have been or are being intransigent, however they have already allowed you quite a bit of leeway, so it's not altogether unsurprising that they wish to take further action. It is unlikely a court will order outright possession if you have a realistic prospect of paying the arrears. Please answer the above questions so I can assist a bit further.

[jjthejetplane]

Hello Lea_HTH,

Thank you for taking the time to respond.

Answers as follows;

 

How much are the arrears?

£8500

 

How long is left on the loan term and is this a first charge?

24years 9m, yes- first charge.

 

How much is outstanding?

£270,252

 

What is the property worth? (i.e. is there any equity in the property?)

Maybe £310k for a very quick sale, other properties on the street have averaged around £350k+

 

Are there any other loans secured on the property?

No

 

What are you able to afford to pay currently?

£1000

 

How long do you expect to shortfall the current mortgage instalment?

for another 4-6 months maximum

[jjthejetplane]

Hello dcahelp,

No im on repayment - they wouldnt agree to interest only.

The 3rd May is the court date, not eviction.

Than you for responding.

[Lea_HTH]

Hello Lea_HTH,

Thank you for taking the time to respond.

Answers as follows;

 

How much are the arrears?

£8500

 

How long is left on the loan term and is this a first charge?

24years 9m, yes- first charge.

 

How much is outstanding?

£270,252

 

What is the property worth? (i.e. is there any equity in the property?)

Maybe £310k for a very quick sale, other properties on the street have averaged around £350k+

 

Are there any other loans secured on the property?

No

 

What are you able to afford to pay currently?

£1000

 

How long do you expect to shortfall the current mortgage instalment?

for another 4-6 months maximum

 

The biggest hurdle you will have is convincing the court that you are able to afford this mortgage on an ongoing basis. Normally an offer of the current mortgage instalment plus an amount towards the arrears, even when the arrears are quite high, is sufficient to allow the judge to award a suspended possession order. Your difficulty is that you are not even meeting the current instalment and intend not meeting it for a further 6 months. I can't pretend that is good news.

 

Have you any concrete proof that your income will increase in the months to come? (That's something you can show to the court, not mere promises.) If so, you must provide that to the court so that they can see things are changing. You must put your defence in writing. Explain to the court the current situation, how long (maximum) you expect to be in that situation, that there is equity in the property which means the lender's interests are protected somewhat, and they will not be prejudiced by waiting a little longer for the arrears.

 

Bear in mind that the mortgage company have tried to meet you half way - but clearly they feel they have done enough. What you might gain with their agreement is a suspended possession order on terms...that you pay 1000 per month until X month, and from that date on will pay the current instalment (in full) plus an amount towards the arrears each month (you can use Norgan rules in order to calculate a reasonable amount - but realistically 200 per month off arrears as high as yours would be a fair offer - if you can clear them sooner, all well and good).

 

Try putting your offer in writing to Santander first (you can use the letter as evidence for the court that you tried to resolve this issue out of court) - they will almost certainly turn it down, and if so, you provide the court with your defence (as outlined).

 

Do you have a fall-back position if the court won't accept your proposal? Are you genuinely unable to pay more than the 1000 per month? Could you rent out a room in your home to make up the shortfall just until the business takes off? You really ought to be exploring all possibilities.

[jjthejetplane]

Thank you Lea_HTH, you've given me a lot to think about.

I suppose realistically, nothing short of full payment plus arrears will do. I'm wondering if the best i can hope for is time to put the house on the market.

Thanks again

[dcahelp]

maybe, maybe not...........

 

look, its not your situation, but maybe just maybe you can get something from it.......

 

A friend of mine has very recently succeeded in getting a suspended possession order, he has to go back to court to have the situation reviewed by a judge, but in the meantime it is suspended.

 

My friend has a repayment morrtgage, his wife left him and he ended up in serious arrears on his mortgage....loss of income etc etc etc..... He got an eviction date and after alot of pushing by us( he had basically given up) he went to court. Court ordered that he pay A MINIMAL amount in the short term, this is very short term i hasten to add, he has to be back in court within the next 6 weeks. The court has "advised" his mortgage co, that it would be in the best interests of both sides to be on interest only..... basically they get their money and he is able to pay....... He was the same as you, he asked the question originally but was refused........ His mortgage was not to the value of yours and his arrears v the mortgage were quite high, but he got there in the end.......

 

Could you ask the court to consider the interest only, im not sure maybe Lea could advise on that one.....

 

Like I said it is not your situation but it does happen......... You might get an understanding judge..... Its entirely upto you.......

[jjthejetplane]

Thanks dca,

I find it hard to accept that despite claims in the media that mortage companies want to help homeowners in my situation - they still want to rush through the repossesion claim.

 

Im proactively trying to resolve the situation, on the one hand i want to fight my corner and ask for more time to get back onto regular payments - but i don't want to close off other options (eg time to sell the house if it comes to it).

[Lea_HTH]

You've got a couple of options - you go with your first proposal, i.e. to continue to short-pay the CMI and explain to the court that this is only for a period of 4-6 months and thereafter you will be in a position to clear the arrears and revert to full CMI - or you can find the full CMI (1480?) and add an amount towards the arrears under the Norgan case (you have over 24 years of the mortgage left to run?) - with arrears of 8500 and 24 years you could potentially get away with offering around 50 pounds per month towards the arrears, so a total payment of 1530 per month. (I know I previously said 200, but you appear genuinely not to be able to afford that - and I would suggest you provide the judge with an income and expenditure sheet whichever option you choose to go with.)

 

Clearly that is going to be difficult as you currently say you can only afford 1000 -but are you perhaps able to rent out a room as I suggested previously? Or is that not an option?

 

Is your mortgage a repayment? If yes, then you can make a specific request (put it in writing) to ask for it to be changed to interest only for the next six months (the period you say you require until your business is providing a profit). I know that you said you have already asked, but this should not be reasonably refused, and if it is, you are in a good position when the case goes to court (hence it needing to be in writing - ask them to put any refusal/agreement in writing too).

Edited April 15, 2011 by Lea_HTH
Added a bit.