House due to be repossessed. What's the best option?
Discussion
So this is an empty house? Or could you put the rent up?
Phone the lender, tell them you've got a job and will be able to pay them X per month if they will allow you to keep the house. If you say it, you absolutely have to do it, on time, every month.
If they say no, tell them you'll pay X per month and sell the house a.s.a.p. Ask them if they will give you 6 months to sell it (time to redecorate or something to get max value). Then sell it yourself, you will certainly get more for it than they can. Stick it on Rightmove for 2 months, make sure it's the cheapest of it's kind in the area. If that fails, haggle with Estate Agents to get the best price.
I don't see what bankruptcy has got to do with it, unless you have massive negative equity. If you come out of it owing £5-10K you can live with your parents while you pay it off, and come out of this ok.
Phone the lender, tell them you've got a job and will be able to pay them X per month if they will allow you to keep the house. If you say it, you absolutely have to do it, on time, every month.
If they say no, tell them you'll pay X per month and sell the house a.s.a.p. Ask them if they will give you 6 months to sell it (time to redecorate or something to get max value). Then sell it yourself, you will certainly get more for it than they can. Stick it on Rightmove for 2 months, make sure it's the cheapest of it's kind in the area. If that fails, haggle with Estate Agents to get the best price.
I don't see what bankruptcy has got to do with it, unless you have massive negative equity. If you come out of it owing £5-10K you can live with your parents while you pay it off, and come out of this ok.
Emsman said:
Ironically, waiting for a life policy to be paid owing me £6k, which is being cashed to cover shortfall.
Have you explained that to them? Do you have a timescale for the repayment?Are you sure you are going to get the 6k back?
If so do you have documentary evidence of this?
Have you shown it to them?
It might, if you are in any way able to sign the repayment over to them, at least slow the repo down.
Have you explained to the insurance office why you need the funds quickly?
scotal said:
Emsman said:
Ironically, waiting for a life policy to be paid owing me £6k, which is being cashed to cover shortfall.
Have you explained that to them? Do you have a timescale for the repayment?Are you sure you are going to get the 6k back?
If so do you have documentary evidence of this?
Have you shown it to them?
It might, if you are in any way able to sign the repayment over to them, at least slow the repo down.
Have you explained to the insurance office why you need the funds quickly?
I have shown them, hand delivered documents to them and explainded until I'm blue in the face.
To no avail.
I'm seriously thinking the best idea is to face that I'm going to lose the house, go bankrupt and then see what happens
On the 1st October 2010 a legislation came in to force to protect tentants of mortgage properties, The Mortgage Repossessions (Protection of Tenants etc) Act 2010.
The above requires that the mortgagee gives notice at the time they apply for a Warrant of Execution to instruct the County Court bailiff to enforce a possession order. When doing so they must also send a notice to the property by first class post or by hand delivery or personal service addressed either to the tenant in their own name or to "The Tenant or Occupier". The form of this notice is set out in detail and it specifies all the details of the Court who will be dealing with the matter and the details of the mortgagee who is seeking possession. It also spells out the tenant's new rights under the Act to ask for a stay of 2 months in the execution of the warrant and the process by which this is to be done.
The OP, through his tenant can use the above to both delay repossession and to look for additional financial advice/assistance, please PM for further info.
The above requires that the mortgagee gives notice at the time they apply for a Warrant of Execution to instruct the County Court bailiff to enforce a possession order. When doing so they must also send a notice to the property by first class post or by hand delivery or personal service addressed either to the tenant in their own name or to "The Tenant or Occupier". The form of this notice is set out in detail and it specifies all the details of the Court who will be dealing with the matter and the details of the mortgagee who is seeking possession. It also spells out the tenant's new rights under the Act to ask for a stay of 2 months in the execution of the warrant and the process by which this is to be done.
The OP, through his tenant can use the above to both delay repossession and to look for additional financial advice/assistance, please PM for further info.
Is the lender not willing to accept a Common Financial Statement either filled by yourself or assisted by CAB or CCCS? I'd try speaking to them again as many staff working there focus only on lump sum payments due to the way they are targeted whereas the option of a CFS may still be available as a final choice.
grumbledoak said:
Emsman said:
I'm seriously thinking the best idea is to face that I'm going to lose the house, go bankrupt and then see what happens
There has to be a better way. At least try to find it.Just wish I was in a position to keep the wolves from your door. Sadly, I'm not.
Assuming the former, first thing to do is phone the mortgage company and explain the situation. you will have to take whatever is coming your way on not having a BTL mortgage as you cannot change the past. In the scheme of things £6k arrears is not the biggest problem account the mortgagee will have. You may be able to agree something with them to resolve the issue.
Whatever happens you should go to Court and put your case to the Judge. Courts do not make possession orders lightly although it would be easier to argue if you did live at the property. If you do not go to Court the mortgagee will probably be granted whatever order they are asking for.
You might have to accept that a possession order will be made. If so ask for it to not be enforceable for a specified period of time. This could give you time to get the life policy money to clear the arrears and get the mortgage switched to a BTL and hopefully paid each month going forward.
Bankruptcy would only be an issue if the property was re-possessed, sold for a shortfall and you could not agree something with the lender. If you have other debts an IVA could be an option then but no need to think too much about that yet.
Hope it goes well. I am an insolvency practitioner and deal with IVA/ Bankruptcy so PM me if you want more advice.
Emsman said:
I'm seriously thinking the best idea is to face that I'm going to lose the house, go bankrupt and then see what happens
What about where you live now?AIUI, the house being repossessed is another home that you have that hasn't had payments made on it.
If you go bankrupt, the home that you live in will also be in jeopardy.
Unless you're in rented, but then why would you rent out a house and pay to rent another?
I can't believe the lender is pushing so hard to repo unless you stump up £6k by Tuesday. Speak to someone more senior, provide evidence of money due to you and the fact you're working. Construct a payment plan.
They'll get the square root of 'F all for it at the moment if they flog it off so a deal with you is the better option. 'Remind' them of that.
Whats the LTV on the property?
iAlex said:
Or alternatively open a Paypal account and have 6000 members donate £1.
Christ, let's not open that can of worms....Emsman said:
Eric Mc said:
emsan seems to be reactive rather than proactive by nature.
You need to start dictating the pace on your life rather than allowing circumstances to overwhelm you.
indeed I do. You need to start dictating the pace on your life rather than allowing circumstances to overwhelm you.
Don't look at bankruptcy as a first line of defence. It should very much be the last port of call in a financial crisis. You need to explore all the options which have been mentioned in the posts above.
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