Stay or go

[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

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

[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.

[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

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

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

[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

[samsmum]

Re: Stay or go

Thanks I'll have a read of that. They did send us a letter 3 months ago saying to help us prepare for the increase in April we could start inreasing the payments gradually from December. We declined their kind offer

[PlanB]

Re: Stay or go

They let us switch to interest only for a year. This is due to run out next month and they've said we can't extend it, therefore our payments will increase by about £200 pm

I would ask them to extend it for a further year since the CPR Pre-Action Protocol for mortgage possession proceedings dictates that they should consider the following: (1) extend the term of the mortgage (2) change the type of the mortgage (3) defer payment of interest due under the mortgage.

If the lender insists (and you can challenge it) on keeping it as repayment mortgage then ask them to extend the length of the current term to 25 years which would bring down the payments.

Read this and if you do write to them send them a copy of Point 7

http://www.justice.gov.uk/courts/pro...tocol/prot_mha

If they don't co-operate then you can make a complaint and take it to the FOS which takes a hard line on this issue with lenders who prefer to let you get into a financial mess so you get repossessed ignorant of the fact that the lender is supposed to have prevented it in the first place.

[samsmum]

Re: Stay or go

They let us switch to interest only for a year. This is due to run out next month and they've said we can't extend it, therefore our payments will increase by about £200 pm

[PlanB]

Re: Stay or go

We feel no great ties to this house and just need to decide if it worth sticking it out. Our mortgage wont be paid until i'm in my mid seventies so it feels a bit like we're just renting it from Norther Rock(NRAM).

Does this mean you're on a repayment mortgage because if you changed to interest only for a few years the monthly repayments would drop dramatically

[samsmum]

Re: Stay or go

Thanks for all the replies. We wouldn't even consider bankruptcy for our unsecured debts....only if we decided to rent as oviously we'll have a big shortfall. We feel no great ties to this house and just need to decide if it worth sticking it out. Our mortgage wont be paid until i'm in my mid seventies so it feels a bit like we're just renting it from Norther Rock(NRAM).

[fluffystuff]

Re: Stay or go

Lots of good advice already given Samsmum, no more to add save for whatever decision you eventually come to, make sure it's one that you are both comfortable with.

I agree entirely that most times, the worrying of what to do is actually worse than the doing!

Whatever you decide I wish you all the best of everything.

[oldyboy]

Re: Stay or go

hey Samsmum,
I'm not sure if this is going to help you, but just wanted to say there are so many people struggling with day to day living its getting beyond. Even families on above average combined incomes are struggling to: pay rent/mortgage, heating, food and fuel/travel to get to work to start the whole cycle again.
Easier said than done, but why not try and have a day, weekend without it churning over in your mind and have a fresh look at it on Monday?
One things for sure, there is top notch advice on AAD.
Good luck.
Missy

Wise words from Missy. Sometimes it's difficult to deal with a problem when so many factors might keep turning round in your head. I also agree that everyone is struggling, including me!

Going BR isn't necessarily the magic bullet that it's sometimes perceived to be. One set of problems are sometimes simply replaced with another set.

Can I suggest your first step to be looking for suitable properties to rent, and making enquiries about their respective tenancy agreements? Don't forget rental agencies carry out credit checks for prospective tenants. Also don't forget that some agreements have a clause that makes going BR a reason for eviction.

[SA Gold]

Re: Stay or go

hey Samsmum,
I'm not sure if this is going to help you, but just wanted to say there are so many people struggling with day to day living its getting beyond. Even families on above average combined incomes are struggling to: pay rent/mortgage, heating, food and fuel/travel to get to work to start the whole cycle again.
Easier said than done, but why not try and have a day, weekend without it churning over in your mind and have a fresh look at it on Monday?
One things for sure, there is top notch advice on AAD.
Good luck.
Missy