Finally admitted we cant afford our home but need advice on the practicalities

[tonycee]

Dizzy81

J ust be careful with the shortfall and bankruptcy because i got repossessed but never went bankrupt and ten years later they turned up on my door asking for a eye watering amount..Get good advice is good advice..

 

 

A very wise piece of advice.

 

 

 

 

The mortgagee ( Them ) can chase the mortgagor ( You ) for 12 years from repossession. Adding interest to the amount ( Shortfall ) for the first 6 years.

[sillygirl1]

You still may have grounds to contest your liability for the shortfall, the whole point of repossession is to minimse the loss to the company involved so they should not be repossessing you if there is a large amount of negative equity, that actually may be on your side.

[tonycee]

may be on your side.

 

 

Indeed. You must speak to them to ask if there are any options.

[dizzy81]

Ive had the forms through this morning, It actually states on them "If you are in arrears and we do not receive the completed forms within 7 days we will proceed with appropriate action to take possession of the property". Does this mean I have kickstarted the proceedings so to speak by letting them know my plans?

 

I have my appointment with CAB this week coming so that should make things clearer. I have been talking to my husband about what people on here have advised ect and we are in agreement that banbkruptcy would be the best thing to do. As geoff said earlier about being chased after 10 years we just want an end to it, I cant imagine what a shock that must have been.

 

Thanks

[geoffthechef]

Dizzy, I had become married and had children and a completely new life with a good paying job and i was very lucky as i had told my wife all about it but it did cause some friction and resentment because it appeared out of the blue for her....

I can not emphasise to anyone reading how important it is to cover all bases when you are subject to a repo....good luck

[dizzy81]

hi GuysSpoken to CAB and she said pretty much what everyone else on here has said ref the forms. She said I could post keys back with a letter and that there isnt much the lender can do, ie they cant force me to stay. She also said that they may bide their time with requesting the shortfall as they have 12 years and could wait till im (Hopefully) qualified and therfore earning more money to come after it. She was really lovely and said the main thing is to sort out a house (Which as above i have already done) and I think im just gouing to post them back. Is there anything i would need to put in the letter in particular? She couldnt answer this specifically - just wondering how to word itThanks Dizzy

[sillygirl1]

Just put at the start of the letter after the Dear Idiots line

 

"I DO NOT ACKNOWLEDGE ANY ALLEGED SHORTFALL DEBT TO YOU, YOUR CLIENTS, ASSOCIATES AND AFFILLIATES"

 

That way you are stating you are not going to 'play their ball game' any more.

 

Whilst these companies have up to 12 years to chase a shortfall if there has been no correspondence about it 'in a timely manner' then they can be reported to the Council of Mortgage Lenders as it is against their code NOT to immediately chase for a shortfall.

 

At least the person you saw at the CAB knew the things on this forum were the things to listen to - you would be surprised how badly informed some CAB staff are on shortfalls and repossessions.

[Wintry]

Just put at the start of the letter after the Dear Idiots line

 

"I DO NOT ACKNOWLEDGE ANY ALLEGED SHORTFALL DEBT TO YOU, YOUR CLIENTS, ASSOCIATES AND AFFILLIATES"

 

That way you are stating you are not going to 'play their ball game' any more.

 

Whilst these companies have up to 12 years to chase a shortfall if there has been no correspondence about it 'in a timely manner' then they can be reported to the Council of Mortgage Lenders as it is against their code NOT to immediately chase for a shortfall.

 

At least the person you saw at the CAB knew the things on this forum were the things to listen to - you would be surprised how badly informed some CAB staff are on shortfalls and repossessions.

 

Hi

 

From what dizzy has put, it seems that the CAB knew their stuff on this occasion and she seems very satisfied with the service she received as are thousands of other people on a daily basis up and down the country.

 

There are some very good people in the CABs including debt, housing & welfare rights specialists and they do see and support people face to face (often locally and on occasions at home etc) and not just at the end of a telephone, the CAB service is also completely FREE.

 

Not all people have internet access or are well enough to utilise it and usually these are, or can be the most vulnerable.

 

PS - nothing surprises me and no organisation or individual are / is perfect

Edited August 9, 2012 by Wintry

[angela1234]

Hi dizzy,

 

I am currently going through the exact same thing as you! We paid 129000 for a house now worth approx 45000, it is in an awful area and our neighbours terrible. We are nearly 6 Months behind in our mortgage and had been considering voluntary repossession as I dread the thought of going to court!

For the sake of our marriage and family we need to move. I would be interested to know what you have decided to do? Thanks, Angela

[grace908]

Hi Angela,

 

We moved out at the end of august as planned and have just had the court date for repossession set for 3rd December.

 

Im not sure if i need to fill in the defence forms as i am dont want the house. The forms also state that the claiment is looking for payment of the mortgage arrears - would a court award them this before the house is sold? Im worried mnow as there is an invome and expediture form in there as well. Ive never been to court so really dont know what im doing

 

Can anyone advise please

[sillygirl1]

Try to get to the court hearing and in your defence point out that the arrears should be part of a separate hearing and not part of the reposession hearing - otherwise you could find yourselves liable for a heck of a lot of money.

 

Tell the court that you voluntary left the property and that the arrears should not be included in this spurious repossession hearing.

[sillygirl1]

Do NOT fill in the Income and Expenditure form without posting it on here, it could be a very different form for the one you should be using.

 

Also don't worry about the court, it will just be you, the other side's representative (who will only have had the details the day before the case) and a judge in a room. Everything will be recorded. There should not really be any need for them to use this process as you have already left the property and given them back the keys.

 

They are being very creative here.

[grace908]

Hi sillygirl,

 

Im actually petrified of going to court - is there a way i can get this accross without attending? My husband has depression and doesnt deal well so I know he wont be any good either.

I & E forms - i am a student now and im not sure what i would include as my income, its difficult to know what i need money for too far in advance with regards to books and thing so im not sure what the expenditure there would be. Is there a standard cost to go off with regards to food and things as they vary all the time especially with two young children

 

Thanks

[sillygirl1]

As you are a student ask at your students union for their financial adviser, they will be able to give far more help specific to you than I can, I don't have kids so my situation was totally different.

 

Don't be afraid to go to court, this is what the mortgage ccompany want - an open cheque to claim as much shortfall as possible and make your life hell for the next 12 years or so. Is that what you want for your kids as that is what will happen if you don't go.

 

Sorry to sounds so hard but you really do need to get some outside advice from your students union and the CAB, they are far more able to help than I can now.

[tuttle]

Hi sillygirl,

 

Im actually petrified of going to court - is there a way i can get this accross without attending? My husband has depression and doesnt deal well so I know he wont be any good either.

I & E forms - i am a student now and im not sure what i would include as my income, its difficult to know what i need money for too far in advance with regards to books and thing so im not sure what the expenditure there would be. Is there a standard cost to go off with regards to food and things as they vary all the time especially with two young children

 

Thanks

 

Do not be scared of the county court, it is NOT the same as magistrates or crown court rooms - the Judge is an understanding human being and will assist you in any way possible - he has your welfare at heart not the money grabbing banks.

[grace908]

Thanks guys, had a long think last night and im going to go to court, doesnt sound as scary as i thought. What will i be expected to say? Im going to do the i & e and send that back with the defence forms, what i dont understand is why they want an I & E at this point before the house is even sold, thats what i panicked about yesterday, surely they wont know whats owed til its sold.

 

I am going to try and get it the cAB this week, but would like any feedback if you have anything??

 

Thanks again

[tuttle]

Thanks guys, had a long think last night and im going to go to court, doesnt sound as scary as i thought. What will i be expected to say? Im going to do the i & e and send that back with the defence forms, what i dont understand is why they want an I & E at this point before the house is even sold, thats what i panicked about yesterday, surely they wont know whats owed til its sold.

 

I am going to try and get it the cAB this week, but would like any feedback if you have anything??

 

Thanks again

 

a good idea is to have a brief outline of what the problems (brief!) on separate pages and mark 1a, 1b etc, then have a cover note detailing what is what, it works because its plain english and offers a much better picture of what is happening, plus you will have info on paper that you may forget in court, it is a winner as i have done it, and the judge said not a word to me are had a go at the solicitor for being ill prepared and bullish.

[grace908]

Thanks tuttle,

 

Do I put my student loan down as income? I'm not sure on this as surely its a loan like any other and has to be paid back?

 

Thanks

[tuttle]

Thanks tuttle,

 

Do I put my student loan down as income? I'm not sure on this as surely its a loan like any other and has to be paid back?

 

Thanks

 

possibly, but its for education not income, state that so it makes sense, always make the judge understand your position before the solicitor pipes up.

[Happyhippy1959]

Best of luck Grace, I have now had confirmation that they have received my key's that I sent back last week and will be taking control of the property and will try and sell it as quickly as possible.

 

The usual warnings, charges and interest accruing and if there is any shortfall your liable, ( so is Mrs ex-hippy ) hmmm I am waiting for the sale of the house before I go bankrupt, have the money squirreled away safely but to cover all bases I want the final figures from the mortgage company and the second charge First Plus. It does not matter then what you have signed, it will be lumped into the bankruptcy pot ( though I never signed anything myself ) had a court date of the 15th November, wrote to the court telling the judge to give them immediate repossession with a copy to them they accepted voluntary repo !!!!!!!!!!!!!!!!!!

 

What ever the outcome, you need a life and that they can only have what you have. Best of luck

[grace908]

Thanks Guys,

 

I got a bit brave and spoke to the mortgage company and ive filled in my defence forms. They are welcome to what I have got left over cos its not much!!!!!

 

I definately feel a bit stronger and ready to face it now its all coming to a head so to speak, and i dont miss my physcotic neighbours one bit

 

Thanks for all your support and advice

[grace908]

Morning all,

 

Ive had some forms with the particulars of the claim from nrams solicitors. Strange thing is they are quoting the orignal mortgage details, the one we took out in 2004, we remortgaged with them two years later!!! Also the amount of mortgage is incorrect as well, they are stating £76295, we only took out £67500 originally although im not sure if this is even relevant as this was the original mortgage that was paid off when we got the new deal in 2006. Do i need to malke the judge aware of this as it seems they cant even get the original amounts correct let alone what we owe now.

 

Thanks

 

Dizzy

[grace908]

Can anybody advise??

 

Thanks