suspended court order on my property...Help!

[slt]

I have just been told by mortgage Co that they are taking me to court for a suspended order against my property as my offer of payment to clear my arrears is not enough. Am I going to lose my home, I cant have that happen I have 2 young children. Dont know what to do, feel desparate and so alone whats the point. I am in an IVA already, 18 months in. Please help.

[MelanieGiles]

The Order is going to be suspended - presumably as you have children in full-time education. This means that the mortgage company will allow you to remain in the property, charge you rent for doing so (which will probably be the equivalent of your mortgage payments) and that when the children leave education this gives them the right to sell the property.

You will need to consider whether this is a better option than just moving into rented accomodation now.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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[mikebdomain]

If this is your first court hearing try not to worry too much. I assume you have missed mortgage payments and are currently in arrears. A suspended repossession order is pretty standard action by any mortgage lender when an account is in arrears.

All you have to do is make an offer of an overpayment on your normal mortgage payments to clear the arrears. The judge will then award a suspended repossession order, this means as long as you maintain the agreed repayments there will be no problem and you will be able to stay in the property.

Be realistic with your offer, and do not agree an overpayment that you can not afford. It is a good idea to take an income and expenditure breakdown to court with you, so you can explain any affordability issues to the judge.

Then you can either look to remortgage away from your existing lender or continue making the over payments until the arrears are clear.

If awarded, a suspended repossession order does not mean the mortgage company will own your property after the hearing, what it means is that the mortgage lender will be able to repossess the property easier should you not keep to the agreement made for the over payment. This repossession will still require a further court hearing.

YOU MUST ATTEND THE COURT HEARING, if you fail to do so the mortgage lender may be awarded a repossession order by default, and you could be out of your property within 28 days...

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[slt]

Hi Mike

Thankyou for that, I will attend court and make a sensible and affordable repayment plan.