Natwest after Shortfall Following Repo

[PhoXx1972]

Having spent too long with my head in the sand, they are looking to repossess.

Am I too late to do anything.

 

Since I lost my job in April 2010 I was unable to afford any part of the monthly mortgage payments.

 

I made an arrangement with them to defer payment for 3 months on the proviso that I call them monthly.

 

When I called to start the third month,

the man at the end of the phone advised me that they were not going to defer payment for the third month,

also they wanted me to send in the MI12 form (From the DWP for Mortgage Interest payments).

 

The DWP advised me that I was not entitled to mortgage interest payments until I was claiming 'Income-Based JobSeekers Allowance',

and I was recieving 'Contribution-Based JobSeekers Allowance',

 

NatWest seemed disinterested and told me over the phone to make payments immediately.

I had no further contact with NatWest until April 2011, though I did send in the MI12 form when I was entitled to claim October, 2010.

 

NatWest claim no knowledge of the MI12 form last October, though they did recieve, complete and submit a new form in April 2011.

They said that I will be contacted by their solicitors about payment, though I have only received a copy of their claim form for possession of property with associated court paperwork, the court date is 15th June 2011.

 

So I ask, am I too late?

[citizenB]

This is beyond my knowledge, am flagging for the site team.

[Lea_HTH]

How much are your arrears?

How many months left on the mortgage?

Does the property have any equity in it?

Do you live alone or with partner/kids?

How much is the DWP paying? Does it cover your monthly instalment?

Is your mortgage a repayment or interest only?

[PhoXx1972]

Arrears are £7500

Still 22 years on mortgage (of a 32 year mortgage)

Unsure if propeerty has equity

I live alone

DWP has not processed any payment yet for mortgage interest

Mortgage is repayment, interest & capital

[Lea_HTH]

Can you afford to pay the monthly instalment plus something towards the arrears? Have you been making any payments at all? If you haven't, start making payments - even if they are only token payments of a very small amount - it shows the court, if court action is taken, that you are doing your best and also shows that if you make an agreement you stick to it, within your means. You must complete an income and expenditure form, and find out precisely what you can afford to pay.

 

If you have any other debts then you should contact those companies and negotiate reduced payments - even as low as 1 quid each for any unsecured debt - this is because your mortgage (and council tax) are priority debts and should always be paid first.

 

You should be able to find out roughly what your property is worth by looking at some of the properties in your area are selling for - this will give an idea of whether there is likely to be any equity in your property - compare what is outstanding on your mortgage to what the properties are selling for.

 

Make a request, in writing, to the mortgage company to have your repayment mortgage changed to interest only - they can do this in order to assist you, as it will make the monthly instalment slightly lower (significantly in some cases depending on the rate of interest you are being charged. SMI only covers interest payments, so this will help ensure that the payments you receive will cover the monthly payment. People will often still have a shortfall.

 

Do you have a spare bedroom you could let out? If so, you should consider that as a serious option. I had a case a couple of weeks ago, where the chap lost his property but I suggested to him that he rent out his front room (he only had a one bed property) - the following week he was back in court putting in a stay application as he had found someone to let the room to, and this enabled him to meet the shortfall between his mortgage instalment and the DWP payment. The mortgage company agreed to this, and he went from an outright possession order, to a suspended one.

 

I appreciate sharing your home might not be a preferred option - but it is almost always better than losing the home entirely.

 

Please chase up the DWP about the SMI.

[PhoXx1972]

3 years ago I lost my job, NatWest later repossessed my home after all of my debts (with various companies) went unpaid owing to lack of money.

It took nearly 2 years for me to find work, though it is a fraction of what I was earning previously.

Numerous debt collection agencies have been chasing me for the debts.

NatWest have instructed a 'Shoosmiths' solicitors to chase me for the debt accrued from the sale of my old home.

NatWest are after £40,000.

The other debts are for over £15,000.

I work as an HGV Driver through an agency, I had to register as a sole trader so that I could get reasonably regular work.

My income is not consistent, nor is it at a level where I could commit to payments to service such high debts, I rarely have any money left over after all other bills and expenses.

My question is about bankruptcy, is it worth my while to declare bankruptcy?

How would declaring bankruptcy affect me working as a sole trader?

Are there any debts that aren't affected by declaring bankruptcy?

[citizenB]

http://www.nationaldebtline.co.uk/

 

Have a word with National Debtline. They have a range of fact sheets, or you can speak to one of their advisors. They will explain all your options to you, including Bankruptcy and will be able to advise whether or not this will affect you working as a sole trader.

 

As you have no assets, then this would seem to me to be the best time to do this.