Stay or go

[Never-In-Doubt]

Re: Stay or go

Can you utilise capitalisation more than once? For example if you were in arrears once, they then capitalised the arrears - can they do it a second time (assuming the customer went into arrears a second time) or not? If so, do they have to comply with part 7 or does that mean the first instance of Possession?

Sorry, just wondered about this having read part 7 CPR.....

Thanks

[Never-In-Doubt]

Re: Stay or go

Can you utilise capitalisation more than once? For example if you were in arrears once, they then capitalised the arrears - can they do it a second time (assuming the customer went into arrears a second time) or not? If so, do they have to comply with part 7 or does that mean the first instance of Possession?

Sorry, just wondered about this having read part 7 CPR.....

Thanks

planB

do you know about this? Capitalisation isn't my strong point

I hate CPR - it doesn't half talk jibberish

[PlanB]

Re: Stay or go

Can you utilise capitalisation more than once? For example if you were in arrears once, they then capitalised the arrears - can they do it a second time (assuming the customer went into arrears a second time) or not? If so, do they have to comply with part 7 or does that mean the first instance of Possession?

There is no reason why a lender can't capitalize the arrears twice or seven times if they want, it's only their *policy* which stops them. But the court would expect there to be a damn good reason before sanctioning the lender for not complying with Pre-Action Protocol on the issue.

The decision would be based on the time passed since the previous event and whether the reason for the request was a new/different one or a continuation of the original financial problem implying things may never get any better which would prejudice the lender who could be exposed to a greater risk if the loan size increased.

If the borrower has kept up with repayments following the first capitalization for a sensible length of time (a minimum of 12 months) but then hit a new blip (eg divorce first time and then redundancy next time) then there's a good chance. But a lender wouldn't be expected to allow the borrower to keep missing payments in the hope of 'putting them on the slate' every six months.

As I understand it a court can't order a lender to capitalize the arrears but it does have the discretion to order the arrears to be paid over the remaining term of the mortgage which is in effact the same thing in practical terms. There's no reason why that can't happen twice in a loan lifecycle. My guess is if arrears have been capitalized once then the lender would stand a good chance of getting a suspended possession order the second time if the borrower got into arrears again.

But once any arrears have been paid off the borrower can apply to the court to have the SPO cancelled and the lender would have to go back to the drawing board with a whole new court application for possession if new arrears accrued further down the line so they can't use the original order to get an Eviction Warrant. I believe this was Jimmyq's nightmare.

A lot depends on the lender. Those which have been bailed out by the tax-payer are in a hurry to repossess because they have a deadline to meet to pay that money back and sadly repossessions pull in the cash quickly. NRAM and the Mortgage Express are known to be the most hasty.

[Never-In-Doubt]

Re: Stay or go

awesome, fully understand and the logic there makes sense too.

Very useful to know all this

Thanks

[PlanB]

Re: Stay or go

Borrowers don't realize that lenders have to attempt concessions because lenders don't tell them. The first time they hear about it is at the hearing because the DJ will always ask the Claimant what have they done to resolve things. Most borrowers fail to turn up to court to give the judge something to work with. They should always take a copy of the Cheltenham & Gloucester vs Norgan case (COA so cannot be ignored) to court to remind the judge that he has the discretion not to make them homeless.

http://www.bailii.org/cgi-bin/markup...method=boolean

Borrowers should also remember that that they can normally apply to the court to have a SPO varied just like a CCJ can be redetermined.

[samsmum]

Re: Stay or go

Note to self.......bad idea to go looking at brand new shiny rental properties when you don't know your own mind

[Never-In-Doubt]

Re: Stay or go

Note to self.......bad idea to go looking at brand new shiny rental properties when you don't know your own mind

indecisiveness is a womans trait

[samsmum]

Re: Stay or go

Can't argue with you there

[samsmum]

Re: Stay or go

More bad news at the doc's so think it's really time we changed things. NR have given us 3 more months on interest only but when that finishes we really can't afford to stay here. Not bothered about the house itself but with the shortfall i think we would need to get repossessed and go br. Under no illusions that this is the easy option but if things dont change they will stay the same and i'm not sure our health or marriage can cope with that.

[MrsD]

Re: Stay or go

you need to make a fully informed decision, what is best for you and yours.

read everything, ask questions and whatever you decide, we'll try and help

The family is the important thing, not the house

[samsmum]

Re: Stay or go

Thank you. Thats exactly what we said. Can't pretend i'm not scared but really think renting is the best thing for us. I don't know which order you do things in so got lots to learn and sure i'll have lots of questions

[PlanB]

Re: Stay or go

NR have given us 3 more months on interest only but when that finishes we really can't afford to stay here. Not bothered about the house itself but with the shortfall i think we would need to get repossessed and go br. Under no illusions that this is the easy option but if things dont change they will stay the same and i'm not sure our health or marriage can cope with that.

Your health and marriage are definitely the most important things

It's really good news that NRAM has given you another three months on affordable interest only repayments See how you feel about everything in three months' time because NRAM will probably extend that period by another three months and then another and another because they have to be seen to be reasonable I lived in a house with a suspended possession order for 12 years so please don't fear the worst case scenario because it may never happen.

In the meantime do your homework on all your options as Mrs D says. I would put my marriage first if I had one - but nobody asked Plan B to marry them after the last time

[fluffystuff]

Re: Stay or go

Thank you. Thats exactly what we said. Can't pretend i'm not scared but really think renting is the best thing for us. I don't know which order you do things in so got lots to learn and sure i'll have lots of questions

Ask as many questions as you like, we'll all do our best to help or if you just feel like a 'chat', there's always somebody here.
Just take your time and don't be rushed into anything.

[Enforcer]

Re: Stay or go

I went through this in the last recession 20+ years ago. In the end mortgager was threatening repossession, I had no chance of paying, so moved to rented and posted keys back. It only took them about 12 months to track me down, but no money, no carpets, no wardrobes, 2 kids etc. Left me alone! Until 10 years later a DCA tried it on. They can come back on you for 12 years. Told em to Piss off, and they did.
Beware, if you get back on your feet they will come after you!
Thought about going BR but could not afford it. Skint. Loads of threats off umpteen DCA's but no one ever took me to court. Had nowt they could take.

If you have nothing, that's all they can take.

[PlanB]

Re: Stay or go

Have a read of spent2much's thread on this issue because it's a classic example of how emotion and practicalities and logistics get all mixed up and how taking your time to let matters settle before making any costly life-changing decisions is the way to go

http://forums.all-about-debt.co.uk/s...ead.php?t=7124