How to handle repossession? Desperate for advice.
Back in November we asked our bank to give us a period of interest only as we were seriously struggling to pay the mortgage. Had they turned us down at that point we would have asked for a Dacion en Pago.
We are still waiting from an answer from the bank. There has been one delay after another. The stress is horrendous!
A dacion is no longer an option for us as we have paid every penny we had into the mortagage and will now have to go into arrears as we have nothing left.
Unti we get a decision from the bank, our intention is to pay the amount that we would be paying if we get the interest only period.
However if the bank turn down our application, it is inevitable that they will start repossession.
At the moment we do not even have enough money left to move out and pay a deposit and rent in advance on an apartment so I am thinking that once they start repossession, we will stop paying anything and try to put the money aside to help us with a new start. I can't at that point, see any benefit to us to carry on paying anything into the mortgage as we are likely to lose it all anyway.
We are trying to sell the house and I am worried about what the situation will be if we do manage to get a buyer and we are in arrears. There is quite a bit of equity in the house, so if we go into arrears the plan is to reduce the selling price to a point where it will just cover the mortgage and the costs in the hope of coming out without any debts.
Please can someone advise me on this as a plan? I am terrified of making a wrong decision and making an awful situation even worse.
Just to add some info: We are both resident her and have no other assets apart from our cars. My husbands car is essential if he is to work. We have no assets in the UK and we are not likely to in the future.
Last edited by Sue; 03-19-2012 at 12:47 PM.
Reason: Additional info
Your plan looks perfect if you finally find a buyer for your property. The selling price should then be equal or higher than the amount you owe the bank and then the problem would be solved. If the bank does not take any action nor confirm they agree with the interest only payment there are not many options for you but to do what you suggest, try to sell as soon as possible and if sold at a higher amount than the debt, get some cash so you can have as you say a " new start ".
Our firm can assist in the process, either putting some pressure on them to take a decision about the interest only payment that you requested or negotiating other possible solutions.
Please feel free to contact me on Patricia at Lawbird.com if you wish to discuss your case further.
I just noticed that my colleague posted some useful links on this thread, worth reading for your case: http://belegal.com/forums/showthread...ding-keys-back
My bank refused a dacion while we struggled to make half payments. Once we went into arrears they changed their mind and offered one. The request for a dacion was done through a solicitor. Hope this isn't too late.
If you have been offered a ‘dacion en pago’, congratulations! Unfortunately this is not very common nowadays. Whether it is too late will depend on how many months you are in arrears and on the bank. Your lawyer who is in contact with them should be able to indicate this.