Don’t Trust Your Lender!

Repossession House Keys

When your lender is putting pressure on you to pay off your arrears, don’t agree to a plan that doesn’t work for you and your family.

Never ever agree to pay your bank more than you can afford – either today, or on a payment plan and make sure you get every single agreement in writing.

IMPORTANT TIP: Sometimes the bank will refuse to put these agreements in writing. Instead they say something like ‘I’ll make a note on the system’. Well, in that case write to your bank with a description of your call, what was discussed and what was agreed.

The chances are the bank will not respond, but take that to a Judge and the Court will be more likely to side with you and grant you more time.

Get your free Stop Repossessions Guide Here – Updated for 2017!

Could This Christmas Be When YOU Get Repossessed?

The Risk of Repossession at Christmas

Christmas is the worst time for anyone facing repossession. Not only does Christmas mean extra expense for everyone, but maintaining your family’s spending to keep up appearances can lead to disaster in January.

House Repossession

Is Your Home in 'Upside Down Negative Equity'?

There are some key risks to the Christmas period if you’re worried about repossession and keeping up your mortgage payments:

  • Extra spending on presents for family and friends
  • Extra use of credit cards or payday loans
  • More eating out or parties to keep up appearances at work
  • Fewer working days for most freelancers
  • A mortgage payment date over the holiday that’s easy to miss

Avoid The January Bill Shock That Could Lose You Your Home

It’s a very common theme every year when I speak to people in January as the heavier bills start arriving the week after New Year.

If you’re facing repossession over the Christmas period, then make sure you stick to any payment plan you have with your lender or the Court – especially if you have a suspended possession order already.

Find Out How to Stop Repossession Here

FREE Ultimate Stop Repossession Guide – Updated for 2013

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.

Stop-Repossessions-Help_Guide

Alistair Darling to Stop Rent Back Evictions

The Guardian reported an interesting article on sell and rent back and repossession this week:

Owen and Moira Martin are among the many British victims of companies offering controversial sale-and-rent-back deals. Their three-bedroom maisonette in Plymouth was repossessed last month because the company with which they had entered into an agreement never paid the mortgage, even though it had pocketed about £45,000 in fees from them.

Such horror stories have prompted the government to consult on how best to regulate the estimated 2,000 or so companies in the UK offering such schemes.

‘It’s been devastating,’ says Owen Martin, a supermarket worker, who has had to move into a privately rented two-bedroom flat with his wife. ‘We made sure the rent was paid, but we lost our home anyway because the company we sold to never paid the mortgage company.’

The Office of Fair Trading estimated in its recent report into the sector that some 50,000 sale-and-rent-back transactions had taken place. Operators offer to buy the property of someone facing repossession at a discount price, allowing the former mortgagee to remain in the property as a tenant. They usually also charge significant fees.

Read the full story at the Guardian website

http://www.guardian.co.uk/money/2008/nov/09/rent-back-evictions

Now There’s Even a House Prices Crash Calculator

After years of talking up the property boom and the ‘you can’t lose with property’ articles in the media, the newspapers are now full of doom and gloom about the future of UK house prices.

The reality may be that a housing market depression may be caused by nothing more than the fact that we all start to believe that house prices will fall, we don’t put our houses on the market and we don’t try to move home.

This means that house prices will fall and those affected most will not be those who can ride out the storm and stay put in their homes, but those who are facing repossession.

This Is Money the website arm of the London Evening Standard have even published a price crash calculator so that if you aren’t scared enough already, you can truly frighten yourself into worrying about what your house will be worth if prices fall the same way they did in 1992!

The threat of negative equity however is now a very real one and millions of people will find it impossible to refinance their mortgages and will be forced onto their lenders’ top standard variable rates.

Stop Repossessions Org UK Sees Rise in Negative Equity Repossessions

As 2008 marches on and the global and economic situation looks ever more bleak, so are the tales we are hearing from UK homeowners facing repossession.

Back in 2007 a rough estimate would be that 70% of those people who contacted us by phone or email had some difficulties with their mortgage repayments, were in arrears but were also in a position to:

a) Repay the arrears over a given period either by direct agreement with their mortgage lenders or by a court judgement.

b) Remortgage with a new lender in order to get a fresh start with a new payment record appearing on their credit score

Fast forward and now it is rare that we are hearing from people who have enough extra monthly income to repay their arrears over time and many lenders (especially the sub prime) are refusing to accept repayment plans to pay off morgage arrears.

The majority of people contacting us are now also at the start of the negative equity trap.

The true and actual cost of their borrowings, (which consists not just of the amount borrowed but also the huge penalties, legal and court fees and Early Redemption Penalties), have risen dramatically, whilst the value of their homes is in many cases starting to stagnate, if not fall.

A homeowner who previously remortgaged their £200,000 home with a 90% mortgage (£180,000) and who has either added a secured loan (say £10,000 – new total £190,000) or had a County Court Judgement for unpaid credit card bills of a similar amount, and who has an early redemption penalty of say £7,000, may be mortgaged to £197,000.

One missed mortgage payment and not only can the interest rate rise dramatically so that monthly costs are hugely increased, but legal fees and punishing penalty fees will be also be added.

Suddenly we could be looking at redemption costs of over £200,000.

Sell the house?

Not always possible.

Estate agents will charge a minimum of 1%, more if you go with multiple agents. That’s at lease £2000. Legal fees and the Government’s ridiculous HIPs pack will add another £1500.

It’s now going to cost £3,500 to sell the home and get nothing in return.

But it doesn’t stop there.

If you remortgaged before the Northern Rock crisis hit in September 2007, then the chances are that your lender was giving signals to surveyors to over value properties.

The market is always rising so why not let them over value your home and then lend you more money in return for more profit?

By the time you may be in trouble house prices should have risen by enough to bring down your mortgage level to less than 100% – just in case they need to repossess.

But the reality is that homes are now only selling if the price is right.

Now it’s a buyer’s market again.

Houses which comfortably sold for £200,000 back in 2007 are now sticking in agent’s windows at £189,000.

Suddenly it could cost you as much as £10-20,000 to buy your way out of repossession.

But who is going to lend you the money to pay the costs?

It is not going to happen.

If you do have equity in your home then you do have options to avoid repossession find out here

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.

Stop-Repossessions-Help_Guide

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

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.

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.