A year of misinformation and lies

[MargaretB]

This is a long story, but I wanted to tell it in case anyone else finds themselves relying on so-called experts.

 

I got behind with the mortgage owing to health problems and back in May, having arrears of some £1,500, my lender, GE Money, wrote suggesting that I apply for the mortgage rescue scheme. I had never heard of it, but I rang the lender and asked them to notify the council as a fast track.

 

The next day a letter arrived from the council giving an appointment. This was the sole bit that was fast track.

 

I visited the housing officer person at the council offices and the man explained the scheme to me, which I thought would be a good idea. He told me that it was unlikely a judge would order a repossession with only £1500 arrears and that the council could do nothing until a repossession was sought. He also said I should ask my lender to provide a letter confirming that they had tried every other option.

 

So I wrote and asked them for such a letter and got no reply. I wrote again a couple of months later, which letter was also ignored. I later learned that the person dealing with it had left and nobody had bothered. I also believed that the arrears needed to be more, that a repossession needed to be sought. GE stopped writing when I missed payments, as they had previously done.

 

Eventually the repossession proceedings were applied for, I passed the information on to the council who said I should have applied to them before (I did, back in May) and why wasn't I on the housing register. Since I have a fair bit of equity in the house, I saw no reason to be on the housing register but the council man said I had to be in order to apply for the scheme. He also told me I would only get 90% of the outstanding mortgage, not 90% of the value. Both these claims are false.

 

He then contacted GE Money and wrote to me stating that they would adjourn the proceedings provided I got the form of authority back to him. I took it back the same day, but the hearing went ahead anyway and they acquired a possession order.

 

The council man said he would need to do a home visit, I gave him one day when I definitely could not be here, and that is the day he chose to make the appointment. I phoned to cancel it, asked for him to ring back. Instead I got a letter asking me to phone him at a specific date and time. I did and he was not there.

 

I did not like this man, neither did I trust that he knew what he was doing and decided to sell the house and rent privately. I sent GE money all the details and they agreed to wait until the house was sold and said I could pay what I could.

 

Then they went for an eviction order. I have had to drop £30,000 off the price of the house, it is sold to a first time buyer, and we are awaiting one search in order to exchange contracts before the eviction date, but GE money will not delay even though they have confirmation from my Solicitor. They want confirmation of exchange and a completion date.

 

Since my disabled son has moved into supported housing I have been able to cut down on a lot of expense, and can just about afford the repayments now, though not the arrears. But since the house is sold anyway they will get these very soon. I phoned to suggest this proposal last week and was met with a very ignorant and rude young oik who refused to listen, and told me they would only accept exchange of contracts or the full arrears of £6,000. I have complained about him and my complaint has been upheld by GE Money.

 

Now it seems that if contracts are not exchanged very soon, I am going to have to go to court and ask for a stay of execution. Also I yesterday received a letter from GE Money informing me that they are sending a field agent to advise me on paying off my arrears. A little late in the day, I think.

 

Sorry for the long rant, but just wanted everyone to know how easy it is to trust that people are doing what they say, and end up in a mess.

 

I am a 65 year old widow with a pension. Thank you for reading.

[Desperate Daniella]

Margaret,

 

This is terrible.

 

Do you actually want to sell your house? Or do you feel you have been forced into it?

 

DD

[MargaretB]

Margaret,

 

This is terrible.

 

Do you actually want to sell your house? Or do you feel you have been forced into it?

 

DD

 

I do now yes. I feel that at my age I should not be scrimping along on a state pension while I am sitting on a lot of money, and I no longer like the area where I am living. I just feel that if I had not been given so much bs from incompetents, I would not have had to drop such a lot off the price.

[Desperate Daniella]

I was just wondering if with the right advice from some of the experts here you might be able to hold out for a better buyer, but if you are keen to move anyway you may decide to go ahead now.

 

If this buyer does fall through then people here will be able to advise you on how to deal with the delay.

 

I am so sorry you are in such a dreadful situation.

 

DD

[MargaretB]

Thank you so much.

I just feel now that at my age I don't need the hassle.

 

I have to move at least an hour away in order to rent, because I have two giant breed dogs and you can't rent a tent with a dog round here!

 

So I feel that it is a fresh start and I just want to get on.

 

Everyone is working hard to get the contracts exchanged this week so that I won't have to go to court.

 

I feel drained and exhausted and the doctor says I have high blood pressure when I have always had low.

 

Trying to keep all this from my son before he moved out was a strain in itself, but I didn't want him to worry and at least he is settled now.

[Lea_HTH]

OP, this post isn't to assist you as you appear to have decided that moving is your best option - the following is for anyone reading this thread and wanting to know how MRS actually works.

 

MRS is a last resort option - it is not available to those with minimal arrears or substantial equity in their properties

(there are caps on the amount of money most local authorities/housing associations can spend on buying the property).

 

Possession proceedings have to be underway, and the mortgagor must be in a position whereby they cannot afford the mortgage and something towards the arrears.

 

As part of an MRS application, the local authority will arrange for a financial consultation/assessment

- usually with the Citizens Advice Bureau

- to assess income and expenditure in order to ascertain where any cuts could be made in order to be able to afford the mortgage and clear the arrears.

 

Only if this assessment is failed, is an application for MRS progressed to the next stage.

 

It is an incredibly long process - often taking nine months to a year, during which time the court will simply keep adjourning the possession proceedings

(possession is supposed to be a last resort).

 

The MRS process works for some people (there are strict criteria to be met in order to be considered), but it hasn't worked for as many as the government hoped it would.

 

Most mortgagees will readily accept that a successful application to MRS will be beneficial to them

and will assist with their part of the assessment/application (including GE Money!),

 

however there is no accounting for the uninformed people who often answer the phone and stick to the script that they have been given

to respond to mortgagor's requests for advice or help.

 

If anyone else is in this position, they should contact the local authority, and their local CAB office (or a law centre),

or pop along to their local county court that deals with possessions and speak to the Duty Advice team,

and find out what precisely they need to do in order to be considered for MRS

(most duty schemes should know about MRS and be able to direct you to the right people to speak to at the local authority).

 

As it is an issue involving possession of someone's home, there might be legal aid available to instruct a solicitor (obviously depending on household income)

- so don't be afraid to approach a solicitor if need be to get some initial/ongoing advice.

[citizenB]

Thank you Leah, this is the 2nd situation I have come across where the MRS doesn't appear to have worked, knowing how it should, is going to be very useful indeed

[MargaretB]

Very useful information and I wish I had had it a year ago. I think I will be better off renting privately and using the money, though that isn't nearly as much as it should be now. It has got to the stage where when anything goes wrong with the house, I get peed off because I can't afford to fix it. If renting the landlord will have to fix it.

[Desperate Daniella]

Great advice, Leah. If Margaret had said she didn't actually want to move, or if her sale fell through, I was going to get you and/or Ell-enn over here to help her.

 

Isn't it a shame that the MRS is so complicated? It would help more people, I'm sure, if the whole process moved much more quickly.

[Lea_HTH]

If Margaret doesn't want to sell at the loss she is suffering, she doesn't need to.

There are other options available to her as she appears to have substantial equity in the property and is now in a position to at least pay the CMI, meaning the arrears won't increase.

But she seems determined to move now - and that is her prerogative as at her stage of life she should be enjoying herself, not worrying about a sub-prime mortgagee.

 

I don't think MRS is complicated

- I think that the people who are supposed to know about it haven't bothered to read their paperwork

- or pay attention at their training, and therefore are unable to provide information to those who need it most.

 

One way or another the concept itself is very simple and an initial application should be made, if for no other reason than to stall a repossession

(even if the application fails, it may have given the mortgagor an extra six months in which to find a buyer by themselves).

 

Unfortunately the process will never move more quickly than it does - it's called bureaucracy and that red-tape takes a while to wend its way...

[dx100uk]

as a side issue

 

have you got a complete set of mortgage statements from day one?

 

if not - I would SAR GE Money.

 

there will be heeps of PENALTY charges

and charges for the 'attendance' of the debt advise.

 

all of these are reclaimable & THEIR int rate.

 

I would NOOT trust GE Money as far as I could kick them!!!

 

also were you made to take out any insurance or MIF?

if this was the 2ndcharge on your home - the MIF is reclaimable too in many circumstances.

 

as for the insurances & PPI etc

 

the ONLY insurance your must have is building ins

 

all the others could be deemed as mis-sold too - a favourite trick of GE was life/contents ins

 

if you already had buildings , you don't need it twice!!

 

HTH

 

dx

 

 

dx

[Desperate Daniella]

If Margaret doesn't want to sell at the loss she is suffering, she doesn't need to.

There are other options available to her as she appears to have substantial equity in the property and is now in a position to at least pay the CMI, meaning the arrears won't increase.

But she seems determined to move now - and that is her prerogative as at her stage of life she should be enjoying herself, not worrying about a sub-prime mortgagee.

 

I don't think MRS is complicated

- I think that the people who are supposed to know about it haven't bothered to read their paperwork

- or pay attention at their training, and therefore are unable to provide information to those who need it most.

 

One way or another the concept itself is very simple and an initial application should be made, if for no other reason than to stall a repossession

(even if the application fails, it may have given the mortgagor an extra six months in which to find a buyer by themselves).

 

Unfortunately the process will never move more quickly than it does - it's called bureaucracy and that red-tape takes a while to wend its way...

 

Sorry, when I said 'complicated' I meant muddled because, as you say, people who should give advice often can't, and bureaucratic, but of course it is an excellent way to stall for six months.