Is there any way I can challenge the decision

[smr]

Our house is on the market following us finally facing up to our debt problem. We are subject to two Suspended Possesion Orders, one for the original mortgage and one for a secured loan. We have asked both companies to accept reduced payments whilst our house is being sold but both have declined.

Once we sell our house we can afford to settle the mortgages and all of our debts (around £129K) have enough for a new deposit and perhaps a little left over. I know our situation is not as desperate as some on here,as we are fortunate to have enough equity in the house to do this. However, given the current mortgage payments we are having to make, I cannot afford to pay utilities each month or make any payments to our creditors. Is there any way I can challenge the mortgage comapnies decision not to lower the payments, perhaps by asking the courts to order them to do this ?

[Adam Davies]

Hi
I don't think that a court can order the contractual payments to be lowered.Are you paying extra on top of your normal payments for arrears ?If so then you could ask your mortgage provider to reduce this whilst you sell your house.
Have you thought of converting to an interest only mortgage whilst you sell and finally are your mortgage company and secured company aware that you are selling ? After all it is in their interst that you sell because the cost of repossesion and subsequent sale will net them far less than if you sold.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[ray_a]

It might help to suggest to your mortgage lenders a payment equal to the monthly payment whilst you are selling.

I had the same problem and my mortgage lender was fair about this. It is crucial to talk to them.

This might be appropriate given the housing market is starting to turn and it might be harder for the mortgage lenders to get a decent price if the property is vacant.

Also consider paying less to your unsecured creditors whilst you are in this position. This might free up some cash to pay the minimum mortgage payments.

Don't forget you will need a sizeable deposit if you are moving into rented property!

Good Luck

[mikebdomain]

If you are paying over and above your normal mortgage amount to pay off arrears (you probably had to agree to this to get a suspended repossession order agreed) You could ask the court for an emergency hearing (cost about £120) and at that hearing ask for your payments to be reduced back to the contractual amounts whilst you are trying to sell your property, if the judge agrees he will set a time limit of probably 56 days… You need to think about prioritising your creditor payments at this time.

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[Adam Davies]

Hi
Great advice from Mike and the reason for having mortgage experts on this forum
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp