Avoiding Repossession - Help and Advice

Feb. 2, 2012 - PRLog -- Reasons Why People Get Close To Repossession

Examples include:
Relationship breakdown, Illness or death in family, unemployment or varying income, prioritising other debts and lack of ability to manage money.

As proven repossession stoppers, Quick Completion need to identify the before and after scenario, ie. what caused the problem, why won’t it happen again and what is the cure?

What Can Be Done To Stop Repossession?

Quick Completion believe that 75% of repossessions can be stopped by supporting and advising homeowners effectively.

The lack of simple advice and representation available for distressed homeowners is beyond belief, but Quick Completion can help fill this need.

If Quick Completion are receiving communication from people in distress they may as well keep them on the phone longer and do what they can to help.  If it was happening to family or friends, they would want them to have all the help and support available.
CAB and Shelter try to help, but the lack of worthwhile knowledge and advice is shocking.
Sometimes just giving someone the belief that something can be done can push them into action.

Repossession can be stopped at any time during the process by using the N244 application form.  This temporarily cancels an eviction warrant and generates an emergency court hearing. At this hearing, no matter what has gone before, it is possible to suspend the possession order by the making of an arrangement, or by asking for time to sell within a realistic timescale.

In the majority of cases, where Quick Completion can clearly see a before and after scenario and where the homeowners can afford their contractual repayments, an arrangement can be made which spreads the full arrears over the remaining term of the loan.

Why Get Involved?

In the Joseph Rowntree report, “Social consequences of repossession for parents and their children”, we learn that the repossession experience can have distressing and enduring social, psychological and health consequences for both parents and their children.

The experience of mortgage repossession and subsequent re-housing was immensely stressful for the families interviewed. This stress was compounded by the protracted administrative processes and procedures of the lenders, the courts and local authorities.

Mortgage repossession was often a route to long-term poverty and substantial debt. Women were found to be especially vulnerable in circumstances where the repossession was the result of relationship breakdown.

The experience of mortgage repossession invoked extreme emotional responses and people described the profound sense of loss they felt at losing the family home. Both parents and children often felt ashamed at their move from the status of 'owner' to that of 'renter'.

The experience of repossession had consequences in six main aspects of peoples' lives. It altered: their social status and identity; their personal and family relationships; their health and well-being; the quality of their lives; their future hopes and aspirations; and the lives of their children.

The experience of the processes of repossession impacted upon the lives of families for some time after the event. People described how they did not have any control over the events associated with the repossession, despite the fact that they all worked hard at trying to find solutions to their problems. They had all endured long periods of uncertainty.

I would urge you all to visit:  http://www.jrf.org.uk/knowledge/findings/housing/829.asp for further reading.

Possible Solutions

As property investors, Quick Completion are in the fortunate position of being able to help families and individuals get back in control and then back on their feet.

As suggested prior, when an eviction warrant is issued, you are able to use the N244 which will get you an emergency appointment with the judge and more often than not the eviction is cancelled (an approxiamate £35 cost). An N244 can be downloaded from here: http://hmctscourtfinder.justice.gov.uk/HMCTS/GetForm.do?c...

State to the courts that you deeply regret that your mortgage payments are in arrears and that your lender has had to take the difficult step of pursuing repossession proceedings.  Mention any mitigating / reasons for arrears i.e. your illness, redundancy, divorce etc. Section 36 of the Administration of Justice Act states that arrears can be cleared within "a reasonable period".  In case law the reasonable period has been defined as the remaining term of the mortgage.  In truth however a minimum of £25pcm or preferably £50pcm should be offered to appear fair and to win favour with the judge.

If your mortgage payment seems to be affordable, explain to the judge that this is affordable and that you are able to pay this coupled with the any arrears.  Paying the arrears off in one whole lump sum is not expected.

Proof of income or at least a budget should be shown. This budget should be carefully constructed as a "predicted" budget, not necessarily a current budget. Explain that you have a good job, earn well (prove earnings) and can adhere to the payment plan. Have you thought about getting a lodger?  Explain that you are perusing this option and this will ease your financial burden greatly.

Also try (if it’s not already) to convert your repayment mortgage to Interest Only.  Again explain that this will reduce your monthly expenditure and make things more affordable and more of the arrears can be paid off quicker.

Can you spread the term of the mortgage / secured loan over a longer period?  This would also reduce the monthly commitment if the lender agrees.

State that you have just learned that many mortgages / secured loans pre-2007 were mis-sold so you may have a valid claim against your current lender.  Indicate that you will be exploring this route now that you have become aware of the mis-selling scandal.  This has now been proven to be grounds for stopping an eviction.

Worse case, respectfully suggest that you would like time to sell via an estate agent as a last resort.  You have equity in the property and need to extract it to move on with your life.  State that you will engage three estate agents to get you an open market valuation of the property and the lenders debts will hopefully be redeemed in full upon sale.  And finally request 56 days to sell on the open market.

Repossession will serve no purpose as it seems that the property may sell for less than it’s worth in auction or post repossession.  A shortfall debt may exist and this will be compounded with interest / other charges.

Also Quick Completion would stress the need to get some professional advice also (if you have not already done so) as the above should only be used as a guide.

Please contact Quick Completion anytime if you would like more practical advice on 07889 989260 or 01604 708334 or visit http://quickcompletion.co.uk for more information.

What People Have Said About Quick Completion

“I will never forget what you have done, my family will never forget what you have done for us. You haven’t heard the last from us, thank you.”
- Emotional mum on the steps of the county court, after eviction suspended on the basis of a long term arrangement to clear the arrears.

“It has been such a relief and wonderful to have someone say that you can still do something, even at the last minute, even when everyone else tells you it is hopeless!”
- Lady with an eviction warrant, stopped on the same day using N244’s and sustainable arrangements put in place.

http://www.youtube.com/watch?v=btuWIRtL_4A



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