repo 15th may - *eviction cancelled*

[nick2]

hi. just spotted this site on google and need some help.

 

im in debt on m mortgage and my loan mortgage arrears 3k and the same with my loan company. I made my last payment to BM around jan for 500 pounds. Since then i lost my job and the doctor suspects i have a slipped disk in my back.

 

I have not made any payments on my loan and since i thought i would get into more trouble and need to take drastic action decided to rent my house out(tenants move in this sat) spoke to BM and they say i have breach terms and conditions of the mortgage by renting it out. i told them as im on JSA and getting back to work does not look like its going to happen anytime soon. The only option i have is to rent it out. If they reposes they wont get full value of the house which wont cover the mortgage. They will then chase me for the remainder and i wont be able to pay them and will have to go bankrupt.

 

I have offered to pay 100 pound this month then they can take the rent as repayment for the mortage + i have a 6 onth rent gauarantee in place as well. BM said they not intreasted as im in breach of the mortgage contract.

 

so any ideas what i do next?

[nick2]

Can anyone help me Please?

[Lea_HTH]

Your mortgage agreement almost certainly contains a term that indicates that if you wish to rent the property out then you have to seek the consent of the mortgagee prior to renting the property. If you do not, then you have breached the terms of the mortgage.

 

The bottom line is that even if you had asked them and gained consent, your interest rate would have increased to take into account the fact that someone else also has an interest in your property (via their tenancy agreement and occupation); plus, a residential mortgage is not the same as a buy to let mortgage.

 

They cannot reasonably withhold their consent, so my advice is write to them asking for their consent retrospectively - send it recorded delivery and keep a copy to produce in court if they decide to repossess.

 

In the interim, pay them the current mortgage instalment plus something towards the arrears to start reducing them.

[nick2]

thanks for your reply.

 

I have seeked consent on a few occasion... and they have refused each time. I then asked then how we could resolve this problem asi have no means to pay the anything and repo order is set for the 15th. I thought if i send a n224 asking to suspend the eviction .. would i have a chance of winning the case or should i give up now

[Lea_HTH]

It is always worth while making an application to stay the eviction - the judge will have jurisdiction and so if he thinks it is reasonable for you to have let the property out (particularly since you have asked them on a few occasions - I hope you have proof of this), then he/she can stay the eviction on payment of the current instalment plus a reasonable amount towards the arrears. Offering the CMI on its own will be insufficient to stay the eviction unless you are in the process of selling.

 

How much are the arrears? How many years/months left (exactly) to run on the mortgage? How much have you rented the property out for? When you signed on to JSA, did you also make an application for statutory mortgage interest from the DWP?

[nick2]

there are about 20 years on the mortage. Really not sure as all my paperwork is in boxes. I do actually want rid of the house but if i sell it now i would end up loosing 20k plus. Arrears are 3k with BM I have rented the property out for 525 per month. Standard payments are 235 per month. So i ould easily offer 335 per month, which i did explain to BM but they was not interested.

 

What is Morgage Interest? and CMI?

[nick2]

HI... I have drafted this out to o along with an n244 and some supporting documents

 

 

Claim No: XXX

 

In the XXXX Court

 

Between

 

XXXX (Claimant)

 

And

 

Mr XX XXXX & Mrs XX XXX (Defendant)

STATEMENT

I am the defendant in this case and respectfully request the court to consider the following information when hearing the above case :

 

The arrears arose due to financial difficulties as a result of my job loss in Jan

 

However as this has been a difficult two years and i decided to rent the house out producing an income of £525 per month.

 

Government guidelines and recommendations by the Civil Justice Council

regarding Mortgage Arrears, whereby lenders are required to give positive assistance to customers who are asking for help and only to consider repossession as a last resort. Discussion between the parties may include options such as:

 

(1) extending the term of the mortgage;

(2) changing the type of a mortgage;

(3) deferring payment of interest due under the mortgage; or

(4) capitalising the arrears

 

I have spoken to BM on the phone in regards to offering me a positive solution to avoid the evection notice on several occasions and told them i have a tenant in the house as i have no other means of been able to afford the mortgage as i am on Job Seekers Allowance.

 

They would not discuss repayment options with me unless i could clear the arrears.

 

With the tenant in place i can afford to make the monthly repayments plus £100 towards the arrears with a tenant in place. The Estate Agent guarantees the rental for 6 months(Please see attached note)

 

In the long term i am seeking work and do have a job interview in the next week

 

Therefore we respectfully ask the court to take into account the case of Cheltenham and Gloucester v Norgan when considering our offer of payment and also s.36 of the Administration of Justice Act 1970.

 

There is a family of four resident in the property.

 

We assure the court that we are committed to clearing the arrears and respectfully ask that possession is suspended in order for us to to avoid the expensive and unnecessary costs which would undoubtedly arise following repossession in the current property climate.

 

We believe the above to be true and factual.

Signed....................................................................................... Date............................................

Signed....................................................................................... Date............................................

 

 

 

Am i missing anything, or should i remove anything?

 

Im enclosing a copy of the rent guarantee and a copy of the short hold tennantcy agreement.

 

Thanks in advance

[Lea_HTH]

An additional 100 per month would clear 3k of arrears in two and a half years, which is well within the Norgan figure that the court starts with as reasonable. But, you must expect that the mortgagee will increase your interest rate as per my initial response.

 

Your statement is okay - but do spell check it, nothing grates more than spelling errors.

 

You should also include evidence of any job offer that might arise out of your interview. Also be prepared to inform the judge what you intend to do with the remaining 190 surplus from the rental, as realistically, whilst you should keep some of that for contingencies/repairs on the property (I'd advise you to get landlords insurance), it is probably feasible for you to pay more than 100 per month towards the arrears.

 

CMI = current monthly instalment.

 

SMI = statutory mortgage interest - a sum payable by benefits (DWP) towards the interest on your mortgage whilst you are unemployed - contact the benefits agency, or speak to someone when you next sign on, about it.

[nick2]

you say the statement i Okay. what can i do to make it better then okay

 

remaining 190

150 of the will go toward my loan

 

and rest will be contingencies/repairs/insurance (which i maintain the property)

 

I dont have that set up with the dwp cause i put my house on the rental market soon as i became unemployed. As i knew there was no way i could afford to live therel

[Lea_HTH]

Spell check it.

 

You wouldn't get SMI now anyway, the question was in relation to claiming it whilst you were still in the property.

 

Good luck with your hearing.

[nick2]

THANKS will keep you posted

[Ell-enn]

Is the property in joint names? I notice you have used "we" and "our" in certain parts of the statement

[nick2]

thanks ell-ennits in just my name

[Ell-enn]

OK, you need to read carefully through your statement and make sure it refers to "I" and "my" etc

[nick2]

thanks ell i have changed this

 

 

Claim No: XXX

 

In the courtt

Between

 

Birmingham Midshires (Claimant)

 

And

xxxxxxxxi (Defendant)

 

STATEMENT

I am the defendant in this case and respectfully request the court to consider the following information when hearing the above case:

 

The arrears arose due to financial difficulties as a result of my job loss in Jan as my place of work ceased trading.

 

However as this has been a difficult two years and i decided to rent the house out producing an income of £525 per month.

 

Government guidelines and recommendations by the Civil Justice Council regarding Mortgage Arrears, whereby lenders are required to give positive assistance to customers who are asking for help and only to consider repossession as a last resort. Discussion between the parties may include options such as:

 

(1) Extending the term of the mortgage;

(2) Changing the type of a mortgage;

(3) Deferring payment of interest due under the mortgage; or

(4) Capitalising the arrears

 

I have spoken to BM on the phone in regards to offering me a positive solution to avoid the evection notice on several occasions and told them I have a tenant in the house as I have no other means of being able to afford the mortgage as i am on Job Seekers Allowance.

 

They would not discuss repayment options with me unless i could clear the arrears.

 

With the tenant in place I can afford to make the monthly repayments plus £100 towards the arrears. The Estate Agent guarantees the rental for 6 months (Please see copy of email from estate agents)

 

In the long term I am seeking work and do have a job interview in the next week

 

Therefore i respectfully ask the court to take into account the case of Cheltenham and Gloucester v Norgan when considering my offer of payment and also s.36 of the Administration of Justice Act 1970.

 

There is a family of four residents in the property.

 

i assure the court that i am committed to clearing the arrears and respectfully ask that possession is suspended in order for me to avoid the expensive and unnecessary costs which would undoubtedly arise following repossession in the current property climate.

 

i believe the above to be true and factual.

Signed....................................................................................... Date............................................

[Ell-enn]

Do you need help with completing the N244 ?

[nick2]

yes please also going to use the ex160form as well

[Ell-enn]

Affixed is an N244 form which you need to print out and complete as follows:

 

1.Your name

2. Tick Defendant

3. Suspension of eviction

4. No

5. Tick at a hearing

6. 15 minutes

Agreed by all parties: No

7. Write - Not applicable

8. District

9. Both Parties

10. Tick box for attached witness statement

Cross out all options except The Applicant Believes

Sign and cross out all options except Applicant

11. Sign and cross out all options except Applicant. Enter your address and contact details.

 

 

Make sure the statement is stapled securely to the N244 ( you will need to take a copy for yourself to refer to in the hearing). When you hand it in to court you will need to pay a fee of £40 but if you are on JSA you may be exempt. I have affixed the leaflet for exemptions from court fees and also the application form so read it through and take any relevant documentation to the court when you take the N244.

n244_0400.pdf

ex160a_web_1010.pdf

EX160.pdf

[nick2]

many thanks... what do you think my chances are?

[Ell-enn]

Judges don't like giving possession to lenders while payments can be made and the arrears reduced, you have a proposal to do just that.

[nick2]

Many thanks, will sleep better tonight

[Ell-enn]

Get that form to the court asap (tomorrow if possible) so you get a hearing next week - there's a bank holiday on Monday and there might not be a lot of slots for a hearing. The court staff should be able to give you a date for a hearing when you hand the form in.

 

Let us know what the date is.

[nick2]

Im not going to be abe to make it there today.Will have to go either friday orTuesday

[nick2]

ok made tie to go to the courts and apply tomoorow... just having a thought though... if the lender decides to go a long ith my repayment option but want to push up the interest rat because the house is rented out. should i push to capitalise the mortgage?

[Lea_HTH]

You're not in a position to 'push' for anything, and they are entitled to raise the interest rate if the property is rented out - you will have a clause to that effect in your terms and conditions. If you want them to capitalise the arrears you should ask them (in writing) to do so - this is definitely something they can do and should consider if it would assist you to keep your home.