House Repossession

[flubber]

I have today been notified that steps will be taken by my Building Society to repossess my home owing to non payment of the mortgage. This situation has arisen through basically 3 years unemployment. During this time I have successfully had three jobs but all ended at the trial period stage, so during this time I have been reluctant to make any repayment offers being unsure I would remain in that employment.

I have kept the Building Society fully aware of my situation - and have also advised them I need a job to be able to buy materials to redecorate the home (which it really needs) in order to sell the home (which I have intended to do) thus repaying them and finding more suitable smaller accommodation.

I have also been aware that the unemployment benefits office have been paying the interest only element on my mortgage during my unemployment periods, so they have received something.

However, today I have received notification to pay the full amount outstanding within 7 days - this is �45,000 and of course is impossible........

Obviously I am now at the situation where the house will be sold (I dread to think at what cost as it is worth $160K) and I have no idea what I should do now.

Is this a time that bankruptcy may be a viable way to go? Would this ensure my home being sold for the best price and am I likely to receive housing assistance from the local council? Should I see a solicitor? Should I go to the citizens advice bureau?

So can anyone please advise me the first steps I should take - I have 7 days to act and must start the ball rolling swiftly.

[woofgang]

Start with your local CAB, who can put you in touch with a debt counselling service, also phone the Building soc today and ask them if there is anything that you can do to avert this. There was also a bit on the news saying that lenders sometimes obtain repossession orders as a precaution but do not actuallty repossess as they know that in the long run it isn't in their best interests.

I hope that tis comes out okay for you

[dannydingbat]

I am not an expert although I was a builidng society manager for many years - the situation may have changed since I left. I imagine the BS are hoping to obtain possession of your house under an Order issued by the Court. They cannot just turn up and take it off you. The Court will have to be satisfied that to issue a Possession Order is the last resort and the only way of getting satisfaction for the debt. I cannot believe that, if the Social Security have been paying the interest and they were happy with that, they would now be unhappy. Are you sure these payments have not been stopped without your knowledge. My memory tells me that the BS cannot just sell your house for what they want, they are obliged to get the best possible price for it although they will deduct their costs. Bankruptcy will not help you here, they can still have the house because they have their loan secured against it. By becoming bankrupt, you will probably mess up your chances of getting another loan and, possible, your entire future. Try the CAB first, they may be able to find you some good legal advice.

[flubber]

Woofgang - I have already done this (in part) I posted more initially but went over the max words.

Over a year ago I went to CAB and have been working with a financial advisor who prepared a financial statement for me and also wrote to those "wolves" I had already corresponded with. It does not help with employment/unemployment/employment etc., as the financial statement is subject to change. I emailed them during October asking them for an appointment (I can normally allow 4-7 days) and had no response. Owing to deafness I can't telephone but am going in person today to make an appointment.

I do understand where the Building Society are coming from - I have kept them aware of my situation and it all hinges on me securing permanent employment to draft a repayment plan - it seems like this is going to be very hard to do, so I have to look ahead now to knowing the home will go but I am in a 3 bedroom home with 2 dogs and don't relish the thought of living in a car.

So I am looking at bankruptcy in regards to whether I can get more return for my collateral or if I am going to lose hands down if the Building Society sell the home over my head for a small sum to regain their debt. Either way I am blacklisted but I need to look ahead a bit and satisfy everyone out of this dismal situation.

[flubber]

hello dannydingbat - I was replying to one post as you must have made your post. I am going to see the unemployment benefits office today to advise them and get them to check their records through. I am aware my weekly benefit is reduced because of interest element for my mortgage being paid direct to the Building Society, but I have no statements from the Building Society at all so I can't see these payments, but I do have the paperwork that my weekly entitlement is about �72 of which �20+ is taken for interest on mortgage.

There's limits to any business' patience so I fully understand where my Building Society are coming from - I am sad that I have kept them fully acquainted with the situation that I am in and my future aims (which I have not changed) and they are giving me a wonderful early Xmas Present. Whether its repossession or bankruptcy I am still blacklisted, but I am trying to help myself as well as them and have not buried my head in the sand.

ok - its unemployment office for an urgent appointment and onto CAB for an urgent appointment and I will keep this thread open and report back because it may help anyone else in this situation that have a mortgage through Lloyds Bank with Cheltenham and Gloucester Building Society.

Signs of the times! In 40 years I have never been on a black list or credit blacklisted - sad when I notify people and explain and try and work with them and try and help myself - but I guess times change.

[andyjevs]

http://www.debtquestions.co.uk/debt_forum/index.php This lot might be able to help if you don't get the answers you're looking for on here.

[sandbach99]

Did you or do you have an insurance policy on your mortgage in case of sickness or unemployment?

Ask the unemployment office for a statement showing where the money taken for your mortgage has been sent the amount and dates, ask your building society for a statement to see if these payments have been correctly credited. If the interest rate on your mortgage increased did you inform the unemployment benefit office to get more money for your building society.

As said before consult the CAB
I note that you are deaf, it may be possible to claim disabled living allowance especially if this causes you any problems in you daily life, contact the deaf society they may be able to help you and ensure you are getting all the help you need

[flubber]

Hi Sandbach - yes I had mortgage protection that paid for the initial 6 months only, then the next 3 months I went into overdraft paying the mortgage - so the Bank froze my account and subsequently closed it. During that time I was seeing them frequently trying to get their minimum repayments geared to something within my �52 unemployment benefit. When they closed my account they also closed my repayments for mortgage protection policy, but I was out of time to claim again (until I had worked for 6 months and that I have been sadly unable to achieve)

I will ask the job centre for a statement concerning the amounts that they have paid and full details. problem is all finances have been moved to South Devon and I am in North Devon and of course cannot telephone - so I have to see the local people and ask them to call on my behalf. They are very helpful but I am concerned that the clock is ticking right now.

As to using the RNID I am not sure about declaring myself disabled or whatever - I have had this hearing loss only in the past 4 years and it is hereditary. Committments taken before that time were in good faith and I really am trying to secure employment in a different field and have to let go 30 years of a high wage earning type of employment - and to be honest I am happy for this house to be sold, but on my terms - when it is decorated - when I have somewhere else I can go to and not have the plug pulled when all I have been doing is advising people every step of the way.

I will contact RNID for advice - and thank you for the suggestion. Other people are worse off - that thought is keeping me sane right now.

[sandbach99]

I believe all councils now have web-sites you can contact them on, try google or ask jeeves for web address, Email them they maybe able to send the details back by email. You may find the Building Society is able to answer you by email as well
Disabled Living Allowance is paid if entitled in addition to your Unemployment Benefit, have you seen the person at the Benefit office responsible for disabled people, if not make an appointment, they may be able to help I think employers still have to employ a percentage of disabled people.

If you use sign language try to ensure you have a signer with you, usually the official bodies have someone they can call in and they pay their expenses not you

[flubber]

Well today I called at the Job centre who are going to send me details of the interest payments they have been paying direct to my mortgage company.
I also am awaiting an appointment with an advisor to determine whether I am eligible/should request a disability classification (re deafness).

I saw by financial advisor at CAB who is contacting the BS to see if they will delay their repossession order as I will be selling my home myself (I think this is a better prospect for me to do this) and an estate Agent is viewing my property next Wednesday.

I have picked up housing forms, housing benefit forms and will get on the council list.

Thank you all for your advice.

[mikeni]

Hi there I know exactly what youre going through having just been there myself ! there is a 3rd way which might help assuming that you will be wanting to stay in your house .. I sold mine to an investor .. i lost about 10 % of its market value but now rent it back from them . the dhss pays the full rent and i was able to clear all my debts and s well as the mortgage and have something put by
it hasn;t affected my credit and my neighboiurs don;t know any different and i didnlt have the added cost of removals or doing up another place .. also am really happy where i am and didn;t fancy ending up in a sink estate which is what i would have been offered .
I live in \northern ireland but the same laws apply here as they do in england and wales . when i was in court the b/s WERE NOT GRANTED repossesssion .. the judge gave me time to pay having told him what my plan was .. Importantly as wel if you got a 100 % mortgage originally and had the top up insurance be careful of the small print mine basically said that if tthe house was repossessd then it would be sold to highest bidder but b/s would get all the money .. or if there was a shortfall then the insurance woudl cover b/s but not me . so check ..
I got the firm from my loacal paper in a small ad .. but theres literally loads of investment .property firms who can help ..
hope this helps .. mikey