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If reposession proceedigs start, can you still sell your house yourself???

(50 Posts)
FAQ Fri 26-Sep-08 16:20:54

ermm that's it really......

We have to sell this house, HSBC has f*cked us around again and basically lied to exH on the phone about letting us switch to an interest only mortgage (I do believe him as when we were together he made several phone calls to HSBC - who all his financial stuff is with - and put it on loudspeaker so I could hear what they were saying........then a week or so later we'd get a letter in the post telling us something completely different).

The only way I can afford to move is if I stop contributing towards the mortgage payments (it's not in my name - so me not paying anything won't affect my credit in any shape or form) - this means that they won't be getting anything.......so naturally repossesion is going to start. exH is prepared to take all of that on, but ideally we'd like to try and sell this house (thankfully houses on this street still moving fairly quickly and at reasonable prices) before it gets to that stage.

What I'd like to know (to give me an idea of what we could/could not end up with after the sale) is once the bank starts the respossesion process is it still possible for us to sell before the process is completed???

SpookyMadMummy Fri 26-Sep-08 16:43:57

I would ask on the Mortgage board forums.moneysavingexpert.com/ - they have mortgage advisors floating about on there and one of them may be able to help you. Sorry its come to this for you, FAQ.

FAQ Fri 26-Sep-08 16:56:58

thanks SMM - will ask on there.

Yes it's a bugger it's come to this, but if we can sell before the bank repossesses we should still both get something out of it which will help both our financial situations.

exH's credit rating is already totally crap, so he's not really too bothered about one more thing to add to it (should it come to repossessino, and even if it doesn't when the non-payments show up on it - he's got enough of those with other creditors of his).

Mine isn't too bad, and a little extra cash from selling the house should enable me to wipe my own debts (none of which are in arrears etc) and start a fresh.

Not looking forward to the prospect of moving - but needs must, and I will be financially better off even if it comes to repossession as I'll then qualify for HB (I'm stuck between a rock and a hard place here atm, don't qualify for HB, and don't get any help with the interest on the mortgage as it's not in my name) so things will ease up on the financial side for me.

KatieDD Fri 26-Sep-08 17:27:59

Yes but get it on the market asap.
But if he has loads of debt as soon as it goes on the market those creditors can put a charge on the house to make sure any profit goes straight to them.

FAQ Fri 26-Sep-08 17:32:48

it's going on ASAP. I don't think that any of the stuff on his credit file is recent stuff, and it's all been sorted out with individual creditors (increased payments etc) - it just doesn't look too good on his file (obviously).

No secured loans on it (again thankfully).

Would creditors with who he's currently keeping up payments with still put a charge on the house????

KatieDD Fri 26-Sep-08 17:41:40

Not if he's up to date with his payments that'll be fine.
But unsecured debt can be added to a charge so make sure he keeps paying everyone.

FAQ Fri 26-Sep-08 18:24:00

phew - not making the mortgage payments means that everyone else will keep on being paid without a doubt (doesn't really affect me at all what happens with regards to the debts as none is in my name.......but it would be nice to get a little something presuming we manage to sell before the mortgage company repossess

Regardless of what happens (repossession or sold) I have from end of October until whichever happens to save £400 a month towards deposit/rent somewhere else as he's agreed there's no point me paying that £400 towards the mortgage when he's going to lose the house one way or another. He'd rather that I found somewhere decent(ish) to live with the DS and use the money towards that.

FAQ Fri 26-Sep-08 18:25:52

assuming we don't manage to sell in time - how many month before the bank says "right that's it - your times up out of the house"????

btw - thanks for your advice KatieDD - I know we haven't agreed on recent threads smile

Divvy Fri 26-Sep-08 18:37:36

If they ask for the deeds back, then no you cant.

up untill this point, if you have a buyer, and they block a sale by asking for deeds back, then they sell for much lower price, you have good case against them as to the debt left, whether you really owe it!

Divvy Fri 26-Sep-08 18:58:09

It can take many months to get you out of the house wink

FAQ Fri 26-Sep-08 18:58:56

thank Divvy - obviously we're hoping we can shift it before it gets to the repossession process getting underway - as you know we're lucky with where we live and the Infant and Junior schools that we have (literally in one case) on our doorstep.

They've held their prices pretty well (been nosing on Ourproperty) and have sold quite fast.......

I think I may be having a few "decorating" parties over the next few weeks to get it looking a little smarter for selling though....

FAQ Fri 26-Sep-08 19:00:40

I don't mind if it takes many months - just gives me longer to save up for a rent and deposit......I'm hoping if I can get deposit and rent for a few months sorted then I can apply for HB once I'm in.......

<<<<<<not looking forward to looking for where to rent that will take DSS>>>>>>>

KatieDD Fri 26-Sep-08 19:06:22

You don't need to tell them you are paying via Housing Benefit just say your ex husband will be covering the rent or a working relative to act as a guarantor, it's not really any of their business how you pay.

Divvy Fri 26-Sep-08 19:06:45

Time to get yourself on the "social housing" list my lovely.

Divvy Fri 26-Sep-08 19:08:24

Also council, or maybe its wellingborough homes now, has a list of landlords that take dss, as the rents have to tested.

mumblechum Fri 26-Sep-08 19:10:42

Banks aren't giving people such long grace periods as they used to, but typically, if you don't make yourOct & Nov payments, then the earliest proceedings could be issued would be Dec, with a first hearing in early Feb, depending on what the local county court's list is like.

So, you go along to the Feb hearing, make an offer to pay the arrears. (I understand that isn't what you intend to do, but bear with me).

If the arrears can be paid, in theory, along with the usual payt, within a year, then the court will make an order for possession but will suspend it.

You then default on the first arrears payt (due March), the lender issues a warrant for possession & the bailiffs will set a date for possession in late April/early May.

You can still string things along for a while by making a part payt and applying for a stay of execution.

So this is a convoluted way of saying that if you get the house on the market pronto & at a sensible price, it is possible to get it sold before possession proceedings come to an end, BUT be aware that the purchasers may be made aware of the proceedings, and be put off by that , and also as someone said earlier, judgements for other debts can be charged against the property and those creditors can apply to sell the house over your head.

FAQ Fri 26-Sep-08 19:12:16

really KatieDD - so if I turned up with deposit and a couple of months worth of rent, plus could twist exH's arm to act as a guarantor for me I could look anywhere.....

Divvy - how does the HB work - if I find somehwere that's (for example) £600 a month......and they consider that it's too much - would they pay anything at all?? Or is there a set amount they say you can have - and anything else you have to sort yourself?

Divvy Fri 26-Sep-08 19:16:52

Depending on rooms, and your own needs, if they then think its only worth £500, thats what they will pay, you would ahve to find the rest.

FAQ Fri 26-Sep-08 19:19:31

oh that's ok then - as I'm already paying £400 out of my other money IS, CTC and CB - so in effect once I'm getting my HB I'll have £400 to "top-up" the HB with obviously I don't intend to spend all that amount.......)although have seen a lovely place on Castle Street wink) but already having budgetted into my monthly outgoings £400 for my housing costs each month any HB will be a welcome relief.

Divvy Fri 26-Sep-08 19:19:35

What mumblechum has said, would also give you a few months to get deposit .....needs must.

FAQ Fri 26-Sep-08 19:22:13

well I'll be saving £400 a month from the end of October - so by Christmas I should have at least £1200.

I have "friend with large van" and another "friend with small open top truck" who I'm certain would be happy to help me with moving - so I can cut out the moving costs from my budgetting (will give money for petrol obviously)

ivykaty44 Fri 26-Sep-08 19:25:52

I am off out so just a quicky, yes you can put the house up for sale even if you have had your first court appearance, and still the bank may give you grace to sell yourself and get out.

This happened in a case I was close to

Divvy Fri 26-Sep-08 19:27:00

You can borrow one of my teens, for babysitting as well wink

FAQ Fri 26-Sep-08 19:30:02

grin divvy - I have an army of friends that will probably be fighting each other to look after the DS's when we move (although I'm hoping that I can do it over a weekend as I'm sure exH would have them so that I can get sorted and at least unpack a few bits and pieces before they get back).......I'm afraid they wouldn't let your teens get a look in .

Thanks Ivy - from what you've all said it would appear I'm going to be ok for getting deposit/rent sorted before I'm forced to leave, and may even be able to look around and find the right place (rather than if I only had 3 months or something just getting the first thing that's available for me).

Divvy Fri 26-Sep-08 19:31:02

See, with the "case" I know about, they found a buyer, but lender blocked the sale, then later sold the house for £25000 less, which then created neg equity.

They are still "chasing" them for this £25000, but they wont be getting a penny wink

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