How to Stop Repossession With a Court Form N244

Did you know that you can request an emergency hearing at your local County Court at any time after you have been served with a Possession Order or Bailiffs Warrant ?

County Court Form N244
Using the court form N244 you can request a fast hearing to present new evidence to the judge to either delay or cancel the order to repossess your home.

To help you with this process we have prepared an example to show you how to fill in the form and how to present it to the court.

Follow this link for advice on how to use County Court Form n244



We’ve compiled Your Ultimate Guide To Stopping Your Repossession.

This 50 page eBook is FREE for a Limited Time Only

You can get your copy by clicking on the image below.

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You Can Stop Repossession Now

By any of the lenders listed below – Act now – Click Here

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Real Life Repossession Cases – Mrs B vs Kensington Mortgages

In order to help other home owners who are facing repossession, we are going to start posting actual cases.

These will be based on situations faced by people who have contacted us but of course, names and identifying information will remain hidden.

Case #1

Mrs. B
Location: Wakefield
Value of Home: approx £500,000
Total Mortgage: £108,000
Lender: Kensington
Second Charge: None
Loan Arrears: £24,000

Mrs B contacted us after receiving a Bailiff’s Warrant for Possession from her local county court on behalf of her lender, Kensington.

She had followed standard procedure to ask the court to allow her to pay her substantial arrears over 2 months. For this she used the Court Form N244. Because her court was busy the judge could only hear her case late on Friday morning, repossession by bailiffs was set to take place at 11am on Monday.

Normally, if a homeowner asks the court to help agree a repayment plan with their lender the judge will recommend that the lender accepts the plan and will suspend the repossession.

However, the judge can only suggest this to the lender.

In Mrs B’s case, the judge took on board the extenuating circumstances (serious illness in the family, coupled with a very low mortgage compared to property value and no other lenders involved) and urged the lender’s solicitors to ask them to accept the payment of £24,000 arrears over a 2 month period.

This is a large sum of money, but also a very short repayment period for the lender to agree to, and Mrs B was able to show that she could make these payments.

However, the lender refused the Judge’s recommendation and stated that only arrears payment in full before the bailiffs arrived on Monday would be acceptable. This was lunch time on Friday.

Unfortunately, Mrs B didn’t contact us until late afternoon on Friday.

If she had contacted us earlier we would have been able to arrange a cash buyer for her home with an option to buy it back later. Unfortunately, there was not enough time to even get ID documents to a solicitor before the repossesion was to take place on Monday morning.

To make matters worse, Mrs B had made a payment of £5,000 on the Friday morning, which instead of being money she and her family could use to find rented accommodation after the bailiffs repossessed her home, would only slightly reduce the overall amount owed to her lender, especially once the lender had added on its legal fees, penalties and costs of selling her home at auction, probably with a very low reserve just to cover their costs.

If you even think you might be facing a similar situation in the near future, seek advice now, because like Mrs B, you might believe that just paying arrears when you go to court will be enough to stop your lender from repossessing your home.

Increasingly, lenders are unwilling to accept arrears repayment arrangements because they fear that by not repossessing today and getting their money back, that your property may not be worth enough to cover your mortgage and loans if there is a property crash.

For more information on the repossession process visit our website Stop Repossessions Org

50% of Repossessions Are By Sub Prime Lenders

 

According to statistics published today by BBC Radio 5, FIFTY PERCENT of all repossessions in 2008 involve sub prime lenders.

No surprise there then?

Repossession House Keys

Except that sub prime mortgages only make up 6% of UK mortgage lending.

Among the other fifty percent the highest number of repossessions are being brought by high street lenders Britannia Building Society, Bradford & Bingley, and (no surprise here) Northern Rock, all of which have pursued an agressive mortgage lending policy in the last 5 years.

Sub Prime Lender Kensington Pulls No Punches in Home Repossessions

In the last few weeks we have had numerous calls from desperate homeowners who have gone to court to try and make an arrangement to pay off their mortgage arrears and ask the judge to suspend a possession order.
Kensington Logo
All of these callers have said the same thing.

The Judge asked the lender’s solicitors to speak to their client (the lender) to be lenient and agree a repayment plan. The answer comes back – a resounding ‘No’. The lender will only accept full arrears paid or repossesssion.

When asked the question ‘Who is your lender?’ the answer in 99% of cases has been Kensington.

Kensington are well known on the online forums for their heavy handed tactics and the huge charges they add as soon as a borrower misses a payment.

This sudden rise in calls for help regarding Kensington repossessions seems to suggest that maybe Kensington are looking to get as much cash back from their borrowers as possible before house prices (and their asset values) tumble.

After all, when faced between paying high inter bank interest for their money or bringing in cash from troubled borrowers via repossessions (and charging them high fees for the privilege) which would they choose?

The fact is that if you must borrow from a sub prime lender then read the small print carefully and make sure you can stick to the monthly payments – the consequences of not doing so are ever more likely to result in your home being repossessed.

Manchester is Britain’s Debt Capital

According to ITV’s documentary Repossession Repossession Repossession (to be shown tonight at 10.35pm on ITV1) the northern city is where the highest percentage of those with serious debts and facing repossession, can be found.ITV Programme Repossession Repossession Repossession

The programme will claim that 29% of households in Manchester are facing serious financial problems and possibly home repossession.

Fuelled by easy credit access in the last 10 years, many of those in trouble are under 30. They have grown into adulthood being able to constantly re-finance their credit card debts until at some point the only option may have appeared to be consolidating their loans and securing them against their homes.

Now the credit crunch has forced lenders to be ultra cautious as to who they lend to (or the less reputable to be able to charge ever more disproportionate interest rates) most of those with high Loan to Value mortgages (85% and above) also have secured debts that in some case can mean they are more than 110% mortgaged.

In this case even the sale of the property would not realise enough equity to repay all the loans.

Lenders are increasingly using the repossession process to recover their money, some of them on the basis that in the current financial climate the money is better off with them than being risked as a total loss if another of the homeowner’s creditor decided to repossess.

The programme can be seen 5th Feb 2008 at 10.35pm on ITV1

Is Sell and Rent Back The Right Option For Me

When Sell and Rent Back is not an option

One of the questions we get asked most is ‘Is Sell and Rent Back and Option For Me’?

bigkeyrepossession.jpg
The answer really depends on a number of circumstances and every situation is different, but generally speaking sell and rent back options are not feasible for those whose properties are worth £300,000 or more.

We have seen a massive rise in those seeking help to stop repossession whose properties are valued at over £300k.

For sell and rent back options to work, the buyer must be able to charge a rent that covers the cost of financing their mortgage.

With interest rates currently at around 6% for Buy to Let mortgages, this means that for every £100,000 that the buyer needs to mortgage, he or she must pay £600 pcm in mortgage interest. For a property over £200,000 this already equates to a rental figure of over £1200pcm.

Even if you might be prepared to pay £1200pcm now (and it may seem attractive if you are currently paying a lot more in servicing your debts), but the problem is that market rents in most areas of the UK are nothing like that amount. The average UK 3 bed semi may be worth £200k on the open market, but rental averages are probably more like £650 pcm.

This means that market rents are out of sync with property values. No investor can afford to buy a property and rent it back to the previous owner unless the rent covers the cost of their buy to let mortgage. No lender will lend against a property for a buy to let mortgage unless it believes the rent will cover the cost of the buyer’s interest payments comfortably.

For most lenders this means 125% coverage. For example is the interest was £1000pcm, the market rent must be at least £1250pcm otherwise they will not lend against the property.

For those who are facing financial difficulties with properties over £300k the obvious option is to sell on the open market and realise the best price.

Sometimes it might be possible to enter into a sell and rent back option providing the seller has enough equity in the property to allow a sale at a much lower figure, with an option to buy it back at a discount at a later stage.

Beware Sell & Rent Schemes Offering 100% of Your Property Value

We’ve been so busy since the New Year dealing directly with those facing repossession that there has been no time to update this blog.

However, a recurring theme of many conversations with those facing home repossession has been ‘Should I deal with Company X who are offering me 100% of the value of my property?’

The answer is NO! It can only be no!

Sell and rent back schemes can sometimes offer an answer, but the companies who offer to pay 100% of the market value for your home are hiding something very important.

The reality is that you will sell your home for as little as 50-60% of it’s value and be left homeless, if not sooner, then certainly later.

How come? Surely if they pay 100% that’s what I’ll get?

Again the answer is NO!

These companies will pay you at the point of sale 50-60% of the value of your property. Very often this is just whatever it takes to pay off your mortgage redemption figure.

They will promise that you will receive the remaining 40-50% in 5 years’ time (one company we heard of was quoting 10 years) PROVIDED that you remain renting for that whole period.

‘Fine’, we hear sellers say, ‘we want to sell and rent back for years.’

Only there is a HUGE catch.

Anyone who thinks that these property buyers will ever pay them the remaining 40-50% is dreaming.

Legally, all the landlord has to do is terminate your tenancy agreement (or put up the rent to a point that you can’t afford to pay and stay) BEFORE the 5 or 10 years is up, and then you will no longer qualify for the final payment.

The result? You have sold your property for very little today on a promise of more tomorrow, and that ‘more’ will never materialise.

So what is the alternative?

If you are considering a sell and rent back option you need to evaluate what you are being paid today for your home.

  • Does it cover your mortgage?
  • Does it leave you with any cash left over?
  • Is the rent affordable?

The only guaranteed thing when you sell your home to rent it back is the price you are paid today.

Avoid any scheme that promises to pay you more in the future!