Much needed advise and help needed

[PlanB]

Re: Much needed advise and help needed

We are so tired and have had every last ounce of strength taken from us that for us now we just want the house to go and try and re-build our lives again the best way we can. Because of what this business has put our family threw we have reached a point were we can't deal with the slightest of things, some days just functioning is an effort. I have fought and fought and spent months and hours trying to get some one to listen and believe in what damage this business has done to us and make everything all right again. But plan b, I have reached a point were I have had to try and except that its over and to let go of what was once our family home.

Reading this post I can see that you've made up your mind to get rid of the problem by letting go of the property and attempt to salvage what you can from the situation. The best thing to do is to break this down into bite-sized chunks and tackle each one separately. The lender is not responsible for your rip-off tenants. The tenants aren't responsible for the solicitor's attitude. Attack the person who can committed the crime and dish out the relevant punishment. You need to aim at the right target.

So I'll ask you questions in separate posts and hopefully offer up solutions for the different elements depending on your answers. Once you start to tackle this you will start to feel more in control of not only the situation but also your whole life. You are young compared to me (I've checked your profile page) so if I managed to re-build my life (twice!) when the chips were down so can you

[PlanB]

Re: Much needed advise and help needed

I haven't even got the strength to re let it as if rents missed etc we are no longer in a position to pay for two homes.

Let's start with the boring Maths. You may be feeling low now but you will kick yourself later if you let go of a solid financial asset. Don't let the lender make a profit out of your hard work. You need to reach an agreement whereby you can sell the house yourself not let them sell it cheap at auction and then chase you for the shortfall for the next 12 years which will only rub salt into the wound. Can you answer these questions:

House No 1 rented out to tenants:

What is the value of the house on the open market if sold through an estate agent?

What is the balance owing on the core mortgage excluding arrears and legal fees?

What is the balance owing on the mortgage including arrears and legal fees?

What is the monthly contractual payment and when did you last pay it?

Have you made any regular payments towards the arrears?

Is this an interest only or repayment mortgage?

How many years left until the end of the mortgage term?

What is the monthly rent due from the tenants?

How much is the rent arrears?

When does the current tenancy agreement expire?

Did the tenants pay a deposit (if so how much?)and did you protect it in a Tenancy Deposit Scheme?

What was the reason you didn't accept the terms of the lender's offer to grant permission to rent it out?

If the lender was willing to re-offer to capitalize your arrears and agree a manageable repayment schedule would you reject this and why? (the answer 'what if' the tenants don't pay their rent may need a rethink if you get a decent letting agent)

What is the exact date in November for the eviction warrant?

[Shadowfax]

Re: Much needed advise and help needed

Let's start with the boring Maths. You may be feeling low now but you will kick yourself later if you let go of a solid financial asset. Don't let the lender make a profit out of your hard work. You need to reach an agreement whereby you can sell the house yourself not let them sell it cheap at auction and then chase you for the shortfall for the next 12 years which will only rub salt into the wound. Can you answer these questions:

House No 1 rented out to tenants:

What is the value of the house on the open market if sold through an estate agent?

What is the balance owing on the core mortgage excluding arrears and legal fees?

What is the balance owing on the mortgage including arrears and legal fees?

What is the monthly contractual payment and when did you last pay it?

Have you made any regular payments towards the arrears?

Is this an interest only or repayment mortgage?

How many years left until the end of the mortgage term?

What is the monthly rent due from the tenants?

How much is the rent arrears?

When does the current tenancy agreement expire?

Did the tenants pay a deposit (if so how much?)and did you protect it in a Tenancy Deposit Scheme?

What was the reason you didn't accept the terms of the lender's offer to grant permission to rent it out?

If the lender was willing to re-offer to capitalize your arrears and agree a manageable repayment schedule would you reject this and why? (the answer 'what if' the tenants don't pay their rent may need a rethink if you get a decent letting agent)

What is the exact date in November for the eviction warrant?

Re figures this is were it gets really mind blowingly over welming re how much arrears minus fees its a mind field and this might just give you a slight inkling as to why the mortgage statements and figures do not add up. I have a letter in front of me from HL dated 20.09.2013 the arrears which include fees etc states on this letter as being £7959.17 but this morning I have recieved a mortgage statement which states details are correct as of 25.09.2013 and the arrears are £7,591.99 !! The cap on the 26.08.2013 is £85,364.93 and on the 25.09.2013 £85,369.73 , now pre arrears of any sort the cap was £83,908.00

[PlanB]

Re: Much needed advise and help needed

House No 2 where you and your family now live:

Is this a rented property or another mortgaged house? (I'll assume rented until/unless you tell me different)

How much is the monthly rent?

Are you in work or self-employed?

If you or your wife are working what is your net monthly income?

Are you claiming any benefits such as Working Tax Credit?

Are you entitled to any benefits due to your ill health? (we have people on here who may be able to help you with this issue)

Are you entitled to claim Housing Benefit due to your income status?

Are you disentitled to Housing Benefit due to notional capital in the rented property above the threshold? (this may change when it's sold)

How many children do you have and what are their ages?

Hang on in there because there're a lot of people on here who can help you to get through this

[PlanB]

Re: Much needed advise and help needed

Re figures this is were it gets really mind blowingly over welming re how much arrears minus fees its a mind field and this might just give you a slight inkling as to why the mortgage statements and figures do not add up. I have a letter in front of me from HL dated 20.09.2013 the arrears which include fees etc states on this letter as being £7959.17 but this morning I have recieved a mortgage statement which states details are correct as of 25.09.2013 and the arrears are £7,591.99 !! The cap on the 26.08.2013 is £85,364.93 and on the 25.09.2013 £85,369.73 , now pre arrears of any sort the cap was £83,908.00

Sorry I didn't mean to make the questions overwhelming. There is no hurry to answer them all, but I do need an answer to each and every question in post #17. It would help my pea brain if you could post your answers in red under each question. It's fine if the answer is *Don't know* and it's fine if the answers are ballpark figures. The different between the figures given by the lender and the solicitor are not vital right now and they're not significantly different to change any plans you're about to make. We'll get down to the nitty gritty later.

The important thing is to establish whether you have any equity (capital) in the property before you decide once and for all to throw in the towel.

I'm rubbish with maths because I'm a woman so you'll need to treat me as an idiot and we'll get along just fine

[PlanB]

Re: Much needed advise and help needed

The law centre have said that given our mental health , our financial situation we should let the property go and file for bankruptcy.

I don't know how much time the law centre allocated to go over everything with you. Oddly enough I don't think your situation is legally complicated, but you are suffering dreadfully from the consequences. The law centre may have thought that going BR would free you from all this and could put you out of your daily misery.

BR may still be a sensible option if you have others debts. Why don't you tell us if you have other financial woes so we can comment on that too. There are some excellent BR advisors on here.

There's no pressure to answer all these questions and I have to log off now for a bit too. Why don't you see this thread as somewhere to unload your problems not an interrogation effort. After all a problem shared is a problem halved

[SaltnVinegar]

Re: Much needed advise and help needed

Hi Shadowfax

Please don't give up yet - Plan B will do all thats possible to help you. Something to remember is that the advice you get here is given by people who have also 'been there' and know the playing field so can help you through it. You're also getting some damn good advice that would cost you a fortune to get from a solicitor!

You must have read the Lord Of The Rings from your avatar (or at least seen the films). Remember that Shadowfax was the King of the Mearas and had almost unlimited stamina and strength. Hopefully you can draw on the same to see you though this. Even though repossession process may have begun you still have opportunity to stop it in the right circumstances.

Hopefully you can get some inspiration from this quote in the Two Towers:
“Shadowfax tossed his head and cried aloud, as if a trumpet had summoned him to battle. Then he sprang forward. Fire flew from his feet; night rushed over him. As he fell slowly into sleep, Pippin had a strange feeling: he and Gandalf were still as stone, seated upon the statue of a running horse, while the world rolled away beneath his feet with a great noise of wind.”

[Shadowfax]

Re: Much needed advise and help needed

Sorry I didn't mean to make the questions overwhelming. There is no hurry to answer them all, but I do need an answer to each and every question in post #17. It would help my pea brain if you could post your answers in red under each question. It's fine if the answer is *Don't know* and it's fine if the answers are ballpark figures. The different between the figures given by the lender and the solicitor are not vital right now and they're not significantly different to change any plans you're about to make. We'll get down to the nitty gritty later.

The important thing is to establish whether you have any equity (capital) in the property before you decide once and for all to throw in the towel.

I'm rubbish with maths because I'm a woman so you'll need to treat me as an idiot and we'll get along just fine

Thank you so much I will slowly work threw each question and do my best to get back to you really soon xx

[PlanB]

Re: Much needed advise and help needed

Thank you so much I will slowly work threw each question and do my best to get back to you really soon xx

The main question is what date in November are you expecting the bailiffs to go to the property? We can work backwards from that to get you the best deal possible.

Keep telling yourself that you can hand in the keys and walk away at any time if you think that will make the hurt stop. Simples.

[PlanB]

Re: Much needed advise and help needed

I have a letter in front of me from HL dated 20.09.2013 the arrears which include fees etc states on this letter as being £7959.17 but this morning I have recieved a mortgage statement which states details are correct as of 25.09.2013 and the arrears are £7,591.99 !! The cap on the 26.08.2013 is £85,364.93 and on the 25.09.2013 £85,369.73 , now pre arrears of any sort the cap was £83,908.00

Why don't you give me some work to do for a change. From what you've said ^^^^ the maximum outstanding on the mortgage including arrears is around £93,328.17. If you PM me the address of the property including postcode I will see if I can get you a desktop valuation from one of the many online resources. Please don't post the address on here. I'll then post up my findings

If you learn that you've got equity in the property then you should fight for it, but if you find yourself in negative equity you may choose to walk away.

[Shadowfax]

Re: Much needed advise and help needed

Why don't you give me some work to do for a change. From what you've said ^^^^ the maximum outstanding on the mortgage including arrears is around £93,328.17. If you PM me the address of the property including postcode I will see if I can get you a desktop valuation from one of the many online resources. Please don't post the address on here. I'll then post up my findings

If you learn that you've got equity in the property then you should fight for it, but if you find yourself in negative equity you may choose to walk away.

I am so very sorry for not getting back to you sooner Looking threw all the paper work and trying to make head no tale of the financial statements as to exactly how much is owed minus fees etc simply blew my mind and I just shut down. I no I can't run away from these problems and that I have to face this head on and without the support of you plan B and others who are trying to help I think I would well and truly hide away and never come back out again. Plan b, would it be possible if I could email you the financial statement info so you can help me work out what payments I've missed, what I've been charged and so on? I no I am asking a lot but I need to lay this matter to rest once and for all. The whole situation is just one huge mess and I feel hopeless, pathetic and well their isn't enough words but I will try if you can help me as I can't do this alone pathetic I no and probably don't deserve your help as we got ourselves into this mess and should get our selves out of it but its just all to much

[Shadowfax]

Re: Much needed advise and help needed

Let's start with the boring Maths. You may be feeling low now but you will kick yourself later if you let go of a solid financial asset. Don't let the lender make a profit out of your hard work. You need to reach an agreement whereby you can sell the house yourself not let them sell it cheap at auction and then chase you for the shortfall for the next 12 years which will only rub salt into the wound. Can you answer these questions:

House No 1 rented out to tenants:

What is the value of the house on the open market if sold through an estate agent

We last had the property valued in April 2013. The valuation having decreased significantly since our previous valuation some years ago was advised as a market value of £110.000 ,£105.000 should we want a quick sale

What is the balance owing on the core mortgage excluding arrears and legal fees?

When you say balance on the core mortgage what exactly do you mean?

What is the balance owing on the mortgage including arrears and legal fees?

According to my last mortgage statement, the total capital balance is £?? Will get paper work out and check this one

What is the monthly contractual payment and when did you last pay it?
The monthly contractual payment varies each month as their is interest charged on the arrears each month and just keeps getting higher But as of now the financial statement shows an amount of £359.40 £24.00 of which is interest on arrears. This payment is based on interest only. The last payment I made prior to trying to make a new arrangement with HL for a suitable repayment plan was £80.00 on the 8th May 2013. £80.00 a week prier to this date was paid every week by standing order
Have you made any regular payments towards the arrears?

Is this an interest only or repayment mortgage?

How many years left until the end of the mortgage term?

What is the monthly rent due from the tenants?

How much is the rent arrears?

When does the current tenancy agreement expire?

Did the tenants pay a deposit (if so how much?)and did you protect it in a Tenancy Deposit Scheme?

What was the reason you didn't accept the terms of the lender's offer to grant permission to rent it out?

If the lender was willing to re-offer to capitalize your arrears and agree a manageable repayment schedule would you reject this and why? (the answer 'what if' the tenants don't pay their rent may need a rethink if you get a decent letting agent)

What is the exact date in November for the eviction warrant?

I will work threw the questions slowly x

[Shadowfax]

Re: Much needed advise and help needed

The last mortgage statement received from Santander is the statement I referred to in a previous post being correct as of 26.09.2013 However payments fall due on the 26th of each month and this statement does not show the monthly interest being charged, it showed 25.09.2013 arrears £7,591.99 which will be higher with payment on the 26th having not been applied and the capital without arrears is as of 26.09.2013 shown as being £85,36493

[Shadowfax]

Re: Much needed advise and help needed

For over 10 months prier to last payment date in April posted above, regular payments were being made on the account for over 10 months

[PlanB]

Re: Much needed advise and help needed

without the support of you plan B and others who are trying to help I think I would well and truly hide away and never come back out again. Plan b, would it be possible if I could email you the financial statement info so you can help me work out what payments I've missed

I could tell you were in hiding and thought you would never come back again.

There's no point in emailing me statements because I'm rubbish with maths but at a glance of your today's posts you have £17k equity in your property (on a good day) which is well worth fighting for. Let me read back through your thread over the next few days and see what's the best way to start to untangle all this mess. I see it as more of an emotional problem than a financial one. If you can get passed that all will be fine.

I'll post up shorter questions which will make this easier since I can see I have overwhelmed you with my essays (I've got your PM ).

Those tenants have got to go for starters since they're not paying any rent. I'll show you how to issue them with a section 8 Notice so you can take back possession of the property and have them evicted.