Archive for Mortgage Lender
Jan
10
Where to go for help on Mortgage?
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If your lender only has one plan that you don’t agree to, if HUD says that you have to be behind at least 4 months, and your arrears is keeping you from obtaining a small loan, what do you do, besides wait for foreclosure?
Real Estate Professionals
Dec
15
I manage rental properties and received a Verification of Rent/Mortgage form from a lender for one of the tenants. Can I be sued by the tenant/borrower for disclosing that her rent is in arrears?
Repossession
Oct
24
First Direct Withdraws Mortgages for New Customers
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Mortgage lender First Direct has temporarily stopped offering mortgages to non-customers in order to process the unprecedented number of applications it has had in recent weeks.
The lender will still allow existing customers to apply for Mortgagesand will resume offering mortgages to non-customers as soon as the backlog of applications has been dealt with. In the interim, HSBC – the bank’s parent lender – will offer new customers a two-year fixed-rate mortgage on similar terms to First Direct’s best-buy mortgage.
Chris Pilling, chief executive of First Direct, said: “We’ve seen unprecedented demand for our mortgages since January thanks to our highly competitive pricing and the decision of other lenders to raise rates. As a result, we’re currently seeing applications running at five times our normal volumes.
“The flood of interest in our mortgages has meant we’re taking longer than we’d like to handle applications, especially from non-customers. Rather than increase interest rates dramatically to discourage new applications, we’ve decided to withdraw temporarily from offering mortgages to non customers until we’ve cleared the backlog.
Some mortgage lenders may have failed to comply with the Financial Services Authority’s (FSA) conduct of business rules surrounding mortgage arrears, according to the FSA.
The FSA’s mortgage conduct of business rules are designed to encourage mortgage lenders and brokers to set business standards for various aspects of their relationships with customers. The second part of the FSA’s Effectiveness Review investigated the effectiveness of the rules in the sub-prime and lifetime mortgage markets.
The FSA’s research into how mortgage arrears were handled, indicated that not all lenders and/or brokers, were in compliance with the conduct of business rules that apply to mortgage arrears.
Richard Farr, director of the Association of Mortgage Intermediaries, said he was disappointed that the FSA has found areas of non-compliance by firms with the arrears rules.
He said: “We are calling for all lenders to invest in their arrears management process, and consider involving the original intermediary. In times of financial crisis, we believe it is important for lenders and intermediaries to work together to help borrowers.””
Rent Back Fast
Oct
10
Can I give my house to Mortgage Lender?
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I live in the UK and have a Mortgage with Northern Rock. I am around 5 months in arrears and the house is becoming a huge burden. I need to get rid of this house quickly but nobody is buying for the amount I owe on the mortgage (which is less than the house is worth).
Can I surrender the house to the lender? I do not want this to go to court as we have a baby on the way and need every penny.
Repossession
Sep
01
Repossession Stopped - Why Making The Right Choices Can Help You Keep Your Home.
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Everyone dreams of owning their own home but that dream can turn into a nightmare often through no fault of your own. Redundancy, divorce, illness and credit problems can create a situation where you’re not able to make your monthly mortgage payments.
Without immediate action, mortgage arrears can very quickly descend into full-blown repossession proceedings and the nightmare of losing your home - and any equity you have in it - becomes a reality.
The good news is that help is at hand. By remortgaging your house with an experienced broker you can stop repossession proceedings in their tracks and get on with your life with a new mortgage that suits you.
Read on to see how these specialist companies can help you no matter where you are on the repossession ladder.
1. MORTGAGE ARREARS
Missing even just one mortgage payment can cause enormous damage to your credit rating and, unless you can pay off the outstanding amount immediately, can quickly become a real problem.
A missed payment is logged as mortgage arrears - if that payment isn’t settled immediately it rolls on to the next month meaning that, until the outstanding amount is settled, you are registered as being in mortgage arrears.
2. REPOSSESSION PROCEEDINGS
Missing several payments or having longstanding mortgage arrears could lead to your mortgage lender starting repossession proceedings.
The first step would usually for the mortgage company to issue a claim form citing the time and date that you would be required to appear at county court.
This can often be a confusing document with a great deal of information including detail of your account, description of the property, details of any previous attempts to repossess the property and details of your arrears.
The claim form is accompanied by a form called an N11M “Form Of Defence”; it allows you to explain your circumstances and what you will do to resolve your mortgage arrears and has to be completed within 14 days.
3. COUNTY COURT HEARING
Even if you have replied to the claim form you must attend the court hearing. Don’t expect an Old Bailey style trial - County Court hearings take place in a private room with you, the district judge and the lender’s solicitor.
You will get a chance to tell the judge what measures you intend to take in order to pay off your arrears.
If your offer is reasonable - for example, by agreeing to remortgage your home, they usually grant a suspended possession order. This allows you to stay in your home provided you pay off the rent plus an agreed amount toward your arrears.
4. POSSESSION ORDER
If you can’t convince the court that you are able to clear the arrears - or if you fail to turn up for you County Court hearing they will issue a possession order. This gives you 28 days to settle your debt or face eviction.
5. EVICTION WARRANT
If you cannot settle your arrears within 28 days OR if you fail to comply with the suspended possession order the lender can apply for an Eviction Warrant without further recourse to the courts. Once an eviction order has been issued, court bailiffs will then set a date when they will visit your property to make sure you have left. The primary aim of repossession specialists is to ensure that this does not happen.
Repossession
Aug
24
Get Upfront About Mortgage Arrears
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A UK resident with a mortgage arrears problem can get a lot of helpful advice from sites and organizations. If you cannot meet your mortgage payments, if you are in arrears or about to become so, dont play the ostrich head in the sand game.
It is crucial that you immediately contact your lending institution and make them aware of your financial problem.
Every lender has a plan in place for dealing with mortgage arrears and helping you get back on track with your payments. They will try to help if you are proactive and honest with them.
If you try to avoid them, refuse to take their calls and just hide out from your creditors, you will soon be in over your head and may lose your home.
There are also some free not-for-profit organizations in the UK whose mission is to try to help you keep your home and your good credit. They will help if you contact them.
Your mortgage lender should be your very first email or call when you realize you have a mortgage arrears issue. Not only do they want to keep your mortgage in place and in good standing, they are also obligated through federal legislation to take your critical situation into account and treat you in a fair, informative and helpful manner.
As of October 31, 2004, the UK Financial Service Authority (FSA) is in charge of regulating each UK mortgage. The legislation says that you must be kept informed about your current mortgage arrears status. Strict guidelines have been set on how the lender must behave before and during any home repossession attempt.
If you are honest with them, your lender just might be able to come up with a more suitable payment arrangement, at least temporarily until you are financially back on your feet again.
The plan your lender can and will put in place for your mortgage arrears situation depends on your payment history to this point, and whether your financial problem is short or long term.
The possibilities they can offer include reduced payments for a set time period, letting you make interest only payments for a pre-determined time period, a short holiday from any payments at all, or an extension on the term of your mortgage. The latter would result in reducing your payments for the length of the mortgage.
If you have already fallen into arrears with your mortgage the options for your lender to offer are fewer. You can pay off the overdue balance gradually by making larger than scheduled payments each month.
If this is not possible you might be able to delay the extra payments for awhile or just add them to the end of the loan period. What the lender determines to accept will depend a lot on the history of your payments on the mortgage up until your financial difficulties set in.
Whats crucial in a mortgage arrears is that you continue to pay something on the due date, even if the total varies each and every month. Communication is an important key to resolving a mortgage arrears in your best interests and saving your home and your good credit.
Repossession
Aug
19
Mortgage Cover Helps You to Avoid Becoming a Statistic
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The Council of Mortgage Lenders recently stated that in 2008 there could be as many as 45,000 homeowners being repossessed by their mortgage lenders. Up to June there had already been a staggering 18,900 homeowners having lost their homes through the mortgage lender repossessing. The reasons for repossession are many with accident sickness and unemployment common ones. If you want to avoid this happening to you then thought should be given as to how you would pay your mortgage if you lost your income. A loss of income can come about due to being made redundant or if you cannot work after falling sick or suffering an accident. Mortgage cover could help you to continue meeting the demands of your mortgage in cases such as these.
When you take into account the fact that just one missed payment on the mortgage means that you would have to catch up and a couple means a downward spiral into mortgage arrears, protection is essential. If you are unable to show that you have means to catch up on the arrears and pay the mortgage repayments at the same time then the lender will take you to court.
If you were offered mortgage cover when you took out the loan you could have declined it due to the high cost that is associated with the cover that high street lenders charge. However there is an alternative, you can choose to take out mortgage protection at anytime throughout your mortgage. By getting a quote from an independent payment protection provider you can get cheap premiums based on age, the amount of cover needed and the level.
You can take out mortgage payment protection for just unemployment or just incapacity. However you can also choose to cover accident sickness and unemployment together. As the cover is age based the younger you are when taking it out the cheaper the premiums are. This means that age based protection is now affordable for even younger first time home buyers with tight budgets.
Mortgage cover taken with independent providers would begin to provide you with an income after a certain length of time of being unemployed or of being incapacitated. Usually there is a deferment period of around 30 days to 90 days before you are able to put in a claim. Some providers would then backdate the payment to the first date of your becoming unemployed or incapacitated. All payment protection only pays out so many payments and the cease. Providers usually offer protection that would provide you with a tax-free sum for a period of either 12 monthly payments or 24. You do have to read the terms and conditions set out in the policy as this is where you are able to find out when cover begins and ends. It will also tell you about exclusions which are to be found in all payment insurance policies. Some providers add in just the bare few while others can add in many. Providing you check these against your circumstances you will have cover that can be relied upon if you need it.
Sell and Rent Back
Aug
10
All The Reasons To Stop Repossession
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Sometimes we find the notifications of the intentions to repossess and we choose to ignore and let it happen due to ignorance. However, this should never be the case when we wish to have some peace of mind. Repossession leaves a very bad image on you.
You appear as someone who is a bad debtor and you also seem to be an irresponsible person. But, you have the power and the capacity to stop that from happening to you when you know what it takes. You need to consider all the reasons why you need even to try and stop this mishap from getting to you.
Stop repossession and get freedom
It is so unfortunate and traumatizing when you just come home one evening from work, class or wherever to meet a different lock on your door. As in, access would have been barred. You can imagine how frustrating that would be when you have to find a place to sleep and all that. So, when you get the notification, find out soon, how you can stop it.
Stop repossession and avoid embarrassment
Just take a moment and imagine what people would imagine on you when your house is repossessed. The common reasons for repossession are usually missed mortgages and defaults of loan repayments. You can stop others from having this kind of assumption about you when you take action earlier.
Stop repossession even after court order
Usually, repossession would only happen when a court gives such a ruling. However, there is usually some time before the real action when you can stop the action. You would need to state this to the dealer so that they find the fastest way to help you out.
Stop repossession even with eviction order
You would receive an eviction order of about 6 weeks when you would be thrown out of the premises. However, you must never just take that as mere threat. You would need to stop the eviction by selling the house and making full payment to your mortgage lender.
Stop repossession even at first notification
Usually, your lender would send you the first notification of repossession. At this time, the terms are still very flexible. All they want from you is that you make some part payment or even balance the arrears you have on the house. Please, liaise with a dealer on how you can end the process.
Stop repossession even when you have no keys
The repossession process could have advanced to an extent where you have even handed over the keys to at the court. But, you can make a difference by informing a dealer right away so that they help you in the processing of the reversal of the case. You will get cash to clear the debts.
Home is home- stop repossession
Yes, you can actually sell your home and not let it be repossessed. You would maintain being in that home as a tenant though this time. You would find this to be very discrete and convenient.
There are more than enough reasons why you would want to stop repossession. Just see if you have any reason to want that and seek the services of a professional.
Rent Back Fast
