Repossession Hearing - House Sale/quity

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Will try to make it short as possible.

52 Years of age, I was made redundant several months ago, third time in 3 years. Always had a decent salary (45k/year+), but had many debts and lousy with money/saving etc.

First National Mortgage Company/Davis & Co have issued repossession proceeding and this will be hear at court for first time on 10th September. The arrears are 6,000. I had held off doing anything as I had hoped to have another job by now and then agree a repayment plan with the court, but this has not happened yet and may not happen before 10th September so can't put proposals forward.

Total outstanding Mortgage to First National is 41,000 (including 6000 arrears) and there is a secured loan to iGroup of 17,000. Total 57,000.

I have hurridly put the house on the market at a knock down price of 95,000 and most probably already have a buyer.

As you can see there is 35k+ equity in the house.

It will take the usual weeks to finalise the sale/exchange/complete and this won't be before the 10th.

My main question is what can I do on the 10th to make sure I can be allowed to sell and repay the mortgage, and don't lose the equity or let First National get am immediate reposession order.

I spoke to David & Co and they won't stop the proceedings unless I have exchanged contracts.

Any advice or similar cases would be appreciated.

Thanks Chris Barlow

-- Chris Barlow (c.barlow.ericsson@talk21.com), August 26, 2002

Answers

Dear Chris,

I am no expert but, as I understand matters, you may push for a Suspended Possession Order. We had one of these and it was suspended for 56 days. This may give you the chance to sell before the BS are allowed to possess. The downside is that your buyer's Solicitors will become aware of this when they carry out their searches and you may find that your buyer comes back with a reduced offer as a result of this! However, as we all now know, this is preferable to repossessiion.

Good luck and let us know what happens.

Mike

-- Mike (mail@resdev.freeserve.co.uk), August 27, 2002.


Actually, the buyer's solicitors will NOT become aware of a suspended possession order because the judgment and the posession order are suspended on terms which will include meeting the monthly payment and something off the arrears and under the Norgan ruling, you could be given the rest of the mortgage term to clear the arrears and the PO and the Money Judgment Order for the full amount owing which goes with it is (though not of right) always suspended the first time it goes to court and cannot be enforced until there is further default.

Carry on with the sale if that is the way you want to go, but if you want to hang on to the house - go to court armed with details of your income and outgoings and show the judge that you can meet x off the arrears and the forthcoming monthly payments and he/she will doubtless suspend the two orders.

-- David Button (davidjohnbutton@supanet.com), August 27, 2002.


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