Repossession in our house - where do we stand?

[PlasticineMeg]

So I don’t want to give away details of how the hell we have got ourselves into this mess, as it’s outing, but it’s mostly down to the impact of COVID on our business and DH’s ill health due to veteran PTSD and long-COVID. we owe our mortgage company £10k and we will be evicted on 25th April. I’m trying hard not to freak out. My granny is helping us out with pretty much the whole lot as early inheritance. If we pay it into our mortgage account do they legally have to stop the repossession? They seem to think they can still go ahead with it as going forward they aren’t confident we can afford repayments - and they’re probably right but we actually sold the house 2 weeks ago and it’s supposed to be completing soon. This however was not enough to delay the eviction process.

We just want to be able to sell on our terms as if it’s repossessed we actually are not out of pocket, but they take ages to sell it after eviction apparently and don’t have to take a decent price either (whereas the offer is significantly over and above what we paid for the property)! Help

Hi there.

I used to work in Debt Recovery for one of the "Big 4" banks, initially as the PA to The Head of Debt Recovery, and later as a clerk who pursued Mortgage debt, tried to rearrange mortgages so that people could afford to keep their homes, or - sometimes sadly pursue to eviction.

The Head of Debt Recovery had to personally sign off on every single eviction, and was very hesitant to do so. Before eviction, every possible route was considered, to try to avoid making anyone homeless.

In your shoes, I would contact your Mortgage provider asap, and tell them that you have inherited money, and that you can pay off the arrears this week. Also tell them about the impending sale. If you don't get anywhere, ask to speak to someone more senior. Even get the e-mail address of one of the Directors. Communication is key. I would also lay it on thick about your DH's PTSD. Threaten the papers even.

You are correct, in that if the Bank do repossess your property, they will often only really be bothered about achieving a sale price that repays what is outstanding - they will not be playing hard ball with buyers, just so you get a fair price. This is why repossessed properties sell so cheaply - there is no one fighting for a fair sale for you, they just want to pay off what's owed to them.

Sorry your in this situation OP

Is there anything in terms and conditions about selling house whilst going through a repossession process?

Do your buyers know there is a repossession notice on your property have they started searches and surveys etc? What will happen if they loose this money and they were not aware the house may be repossessed?

Is grans money to clear the backlog/arrears only?

Thanks both thats really useful. And Yes the early inheritance will clear all arrears.

Buyers don’t know as the offer was accepted before we got the eviction notice 2 days ago and we don’t know what to do really!

That’s sound advice from Tortuga. Communication is key with the relevant facts that hopefully buys you time to complete your sale.

Thanks - I just assumed clearing the arrears automatically stopped the eviction but I think I must have made that bit up in my head 😫

You need to contact them TODAY.

@TortugaRumCakeQueen I want to wait u til the inheritance money is in my account - it’s being deposited this afternoon

I work in risk management in this area. Concern around the affordability in future is a valid reason for the mortgage lender to pursue action, even if you can clear the arrears. BUT your lender should allow you time to sell to achieve the maximum value, this is one of the FCA requirements.

It may be that it had taken too long for you to put the property up for sale, and that's why they would not allow you further time to pursue your own sale but I would contact them TODAY.

Make it clear you have a buyer and that the wheels are in motion, this is a better outcome for everyone. They will hopefully allow you some more time.

Good luck

Ps happy to help further if you want to DM me, I have worked for a number of lenders and am aware of procedures and rules.

It's not really early inheritance though is it because you may never inherit that money if your gran needed it for care or whatever. It is a gift payment. Whether that will affect how the bank view it I don't know.

I have known an eviction stop with less than an hour to go when the owners came into the bank, gave us the money owed and left.

Are you confident that you can pay the mortgage until you can sell?

Contact them today. Make it clear that your husband is a "vulnerable customer". Use those words - explain the circumstances (PTSD etc) and give any proof possible of transfer of funds but do it asap because the people who sign off on credit risk often don't work late. It's very to phone before funds of waiting will push you into tomorrow.

The vulnerable customer thing matters because under FCA guidelines they are required to treat customers fairly and that means something different for vulnerable customers.

@Babyroobs the semantics don’t really matter, I couldn’t return what I don’t have.

Have Called the bank to say we have money coming in and managed to get through to a really nice bloke who said they’d have to fill out an income/expediture form and then take payment and “all being well the eviction will be cancelled”. I said I don’t want to hand over that much cash if it won’t stop the eviction. And then we had the solicitors letter that says in very clear terms on the front that clearing the arrears will stop the eviction. So I will pay off on the basis it won’t go ahead. But if they say they still want to go ahead after paying I’ll be filling out the N244 form and appealing to a judge. Not sure what else I can do from here.

Speak to a debt advisor. One that offers free advice in your local community or citizens advice bureau. Do not approach an organisation that takes an admin fee.
Have a look at Shelter's website.
Speak to a solicitor or a local law centre.

All of the above will give you professional and unbiased advice.

You agree with advice above. Phone them RIGHT NOW (don’t wait for funds). Say funds are coming (they will be able to see transfer if it has been made, even if not cleared). And tell them husband is a “vulnerable customer”. Put it in writing too (email or direct message to them this ASAP and certainly this afternoon).

Good luck OP. I hope it all works out.

(Sorry - cross post - and my opening “you” should have been “I”)

I’ve spoken to them, and was told “Oh you’ve plenty of time to pay it off” yeah 12 days until I’m homeless I think I’ll get it sorted sooner rather than later

Hi OP so sorry to hear this

Do call the Veterans Gateway (if you are not already in touch with other veterans charities). There isl support that is available (and in some cases, this can be financial support)
www.veteransgateway.org.uk/

Try SSAFA too.

If you contact Veterans Gateway they will direct you to the appropriate service. AFAIK SSAFA do not have qualified / certified debt advisors. The Royal British Legion do, so if you wanted to access that service you can contact RBL directly through their helpline.

It sounds like you've been through a lot recently, hope you're coping ok.

You can make an application to the court @PlasticineMeg, to put the eviction on hold. . Contact Shelter fir assistance.

If you are in Scotland OP there is Help available from the Scottish Government. It’s called the Home Owners Support Fund and it’s a form of mortgage rescue.

Not directly relevant but most IAPT services fast track veterans for trauma therapy - I would insist he got treatment or you could be at risk of this sort of thing happening again.

Do not pay the arrears, unless you have it in writing, that the repossession won’t go ahead if you do so.