Need advice with Mortgage problem

[PlanB]

Re: Need advice with Mortgage problem

Exclus I saw a post of yours on here this morning but it seems to have got lost in the system somehow.

Sorry to be a pain but can you re-post so I can reply

[Exclus]

Re: Need advice with Mortgage problem

Can't remember word for word, but the gist was that I had sent you an email with the more personal details of the case, needed to reply to the bank early this week, but would wait to see just what you thought on how I should reply to them. I fully agreed with you that I didn't see what the banks problem was as they had security many times over, and that as the house was on the market at a realistic value (confirmed by a couple of agents) they really shouldn't start any proceedings - but who knows.
I'll hold on writing anything to the bank until I hear from you - Thanks.

[PlanB]

Re: Need advice with Mortgage problem

I had sent you an email with the more personal details of the case, needed to reply to the bank early this week, but would wait to see just what you thought on how I should reply to them.

I haven't received your email since we've had server problems the last couple of days.

The bank gave you a deadline of 14 days to respond to their letter which expires tomorrow. Pick up the phone and tell them that you have sent a letter in today's post. Don't get into a conversation with them, simply tell them you've written to them and are seeking legal advice.

Get a letter off today which asks for a copy of your original mortgage contract with the Ts & Cs for the reserve account included. It's hard to defend your position when you don't know what it is. Tell them you need the documents as a matter of urgency so will they put the account on hold until you receive the full paperwork and have had the opportunity to take legal advice based on it. (This is not a s.78 CCA situation.)

It's no use fighting them with logic (the fact that you have plenty of equity) you need to fight them with facts. They've not mentioned the *repossession* word because they know they can't unless they've exhausted all options under Pre-Action Protocol for possession proceedings. No 7.1 is what you're aiming for

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

Can you say what reason the bank gave for declining your request to extend the mortgage term? If you know why they won't then you'll know what to tackle next. If they didn't give you a reason then ask them for a reason in your letter.

Finally, which department of the bank is writing to you? Is it the collections or pre-litigation team etc?

[Exclus]

Re: Need advice with Mortgage problem

Thanks for help and advice - I've sent a letter by recorded delivery asking for all that you need to see, and asking for everything to be put on hold until I receive it and able to get both financial and legal advice. Post Office said they would receive it tomorrow.
I didn't phone them, as I had previously sent a letter telling them that I was seeking advise and would get back to them within 21 days - and the fact that as we had changed our phone number some years ago, I didn't want them to have the new one.
I am dealing with the collections department at present - they always state 'action' not 'proceedings' which must be a good thing so far.
Lets see what they come up with.
I'll resend my email to you.

[PlanB]

Re: Need advice with Mortgage problem

I am dealing with the collections department at present.

. . . I'll resend my email to you.

I've sent you a PM. Let me know if it arrives safely.

[PlanB]

Re: Need advice with Mortgage problem

I've got your email in which you say that the bank has recently offered to extend your mortgage term by two years. Have they given you any reason why they have changed their mind all of a sudden, and why did they offer two years and not four?

You also say your mortgage has a negative balance of only £1.23p. I'm not sure if that's a good thing or not yet. In theory your mortgage term expired in 2012 but I presume they can't close the account while their is a balance outstanding. I wonder if this is working to your advantage As long as the mortgage account exists and is 'live' it has the potential to be extended. Once closed that potential disappears.

Repossessing you for a £1.23 debt will look prety silly. So a lot depends on whether they can repossess you for a secured overdraft and/or whether that OD should remain secured once the mortgage has been paid off (that'll be in the Reserve Account Ts & Cs I presume).

Wait till you get back the documents and then ask Andrew to take a look at them.

[Exclus]

Re: Need advice with Mortgage problem

Re extending the term, the actual words were : 'We may be able to extend the term of your mortgage for up to a maximum of two years on a repayment basis. After two years if there remains a balance outstanding we will not agree to a further extension'
I then wrote and said that this may be an answer to the problem, and asked what was involved in extending the term and what would the costs/repayments be.

They replied that they were unable to agree to agree to my request at this time for the following reasons:
The mortgage account matured October 2012, and that they were unable to agree to any further holds as they had exhausted all possible options available.

We continue to pay an amount to cover the interest and reduce the reserve account, and will do until the house is sold - never missing a payment or being late.

Your thoughts are appreciated, and I'll keep you up to date as and when I receive a reply from my letter sent yesterday - hopefully with all the paperwork that I have requested.

[PlanB]

Re: Need advice with Mortgage problem

We continue to pay an amount to cover the interest and reduce the reserve account, and will do until the house is sold - never missing a payment or being late.

Which presumably means you've never had a default notice because the account has never defaulted.

[Exclus]

Re: Need advice with Mortgage problem

That's right - always paid on time and never missed a payment.

[Exclus]

Re: Need advice with Mortgage problem

Update:
Received a letter from the Bank today saying they had tried unsuccessfully to contact us by telephone, so have asked us to phone them. I will reply that everything needs to be in writing, and that they have not as yet sent on any of the documents - copy mortgage agreement, T & C's of the reserve account that we have requested in our recorded delivery letter of a few weeks ago.
Seems strange that they don't just send on what we have asked for.

[PlanB]

Re: Need advice with Mortgage problem

not as yet sent on any of the documents - copy mortgage agreement, T & C's of the reserve account that we have requested in our recorded delivery letter of a few weeks ago.
Seems strange that they don't just send on what we have asked for.

Maybe that's because they can't find them. They'd be in some difficulty repossessing your home if they can't prove that they have a mortgage and/or reserve account secured by it

They would need to prove a breach of contract so obviously they'd have to produce that contract in court. You've paid off your mortgage so everything will probably hinge on the terms of that reserve account.

[Exclus]

Re: Need advice with Mortgage problem

You are probably correct!
Don't think we will hear anything for a few weeks - they usually take 3/4 weeks to reply to anything.
Thanks for your prompt reply, it's nice to know that we can call upon others for advice. I'll update as and when we get something back from them.

[Exclus]

Re: Need advice with Mortgage problem

Received a letter today, the gist is this:

'As per our policy, the maximum period we are required to hold documents relating to the mortgage is 6 years. As the mortgage was issued in 2002, we no longer hold documents relating to your mortgage application or the mortgage offer letter'

They also enclosed the Mortgage Current Account Terms and Conditions (England and Wales 2012 Edition), in which it does state that 'When your Loans are repaid in full any amounts outstanding under the Mortgage Current Account Reserve must be repaid at the same time'.

Any thoughts on how I should reply to this? The house is still on the market - a little interest, but no offers as yet.

[PlanB]

Re: Need advice with Mortgage problem

'As per our policy, the maximum period we are required to hold documents relating to the mortgage is 6 years. As the mortgage was issued in 2002, we no longer hold documents relating to your mortgage application or the mortgage offer letter'

They also enclosed the Mortgage Current Account Terms and Conditions (England and Wales 2012 Edition), in which it does state that 'When your Loans are repaid in full any amounts outstanding under the Mortgage Current Account Reserve must be repaid at the same time'.

Didn't you say that your mortgage account was still effectively 'live' with a £1.43p negative balance? In which case how can they possibly say they're not obliged to keep all documentation which is older than six years? Let me get someone else to comment on that.

Those Ts & Cs say "when your loans are repaid in full" the Reserve account must be repaid. But if you've got a negative balance on that mortgage iut hasn't been repaid in full has it?

Was there any threat at the end of their letter or did it simply invite your response with no specific deadline?

[Exclus]

Re: Need advice with Mortgage problem

Thanks for your quick response. The letter finishes off - If we can be of any further assistance please do not hesitate to contact us on the above telephone number. No specific time to reply.
In the previous letter from the collections department the balance shown as owing on the mortgage was £1.24. So I suppose in theory the mortgage is still active. In previous letters I have disputed this, as I say it is fully paid, but perhaps it's better that there is a debit balance still owing.