First stages of repossesion

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I have put my house up for sale about 4 weeks ago because of difficulties in paying mortgages and other debts that i have and i have just recieved a letter from Dickinson Dees Solicitors acting on behalf of Northern Rock informing me that unless i pay the arrears on my mortgage of 2245. they will commence proceedings to obtain possesion of the property. The arrears are for 5 months mortgage payments that havent been paid in full although i have been paying a small amount every month towards the mortgage. What should i do now i need to sell my house and am desperate that they repossess before i have sold it and am in a mess as i dont understand what i should do next will i lose everything ??? Please help

-- Carole (gitbugger@aol.com), July 11, 2004

Answers

No Carole it is very unlikely if this is the first letter you have received from them that they will be able to repossess before you sell, repossession can take a long time. It depends how long it takes you to sell. Read the comments of the District Judge on this site. Go to the citizens advice and they will help you to draw up a repayment plan for all your debts. The Mortgage payments should be a priority. Try to work it so you meet future payments as they fall due and and a little off the arrears. If you can do this a DJ would suspend any possession order and allow you a long time to pay off the arrears. The Norgan case the Judge refers to says they are allowed to give the borrower the whole period of the mortgage to pay off arrears. If the proceeds of the sale of the house would pay off the mortgage and arrears there is als no reason why the lender would want to go through the expensive business of repossession because they would have to market and sell the property themselves which would mean them shelling out even more money. The answer to your question ultimately depends on the details of your present financial situation and whether there is any equity in your house. This is why I reccommend the citizens advice. It may be the lender would welcome the sale of the property but you will have to talk to them. If you have received a solicitor's letter then you have probably ignored letters from the lender itself. They do not go to the expense of getting lawyers involved unless they have no joy themselves. I know from experience ignoring the situation is the easiest thing to do in times of stress but it is not always the best solution.

-- James Campbell (jascampbell@hotmail.com), July 12, 2004.

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