Please help - we are losing our home :-(

[mumisskint]

Re: Please help - we are losing our home :-(

These are the first 5 pages suitably redacted. Thanks for you help

[mumisskint]

Re: Please help - we are losing our home :-(

The last 3 pages :-)

[Caspar]

Re: Please help - we are losing our home :-(

Hi Casper,
Its interesting isnt it? I think I'll give it some thought. I dont know if I could live here if its owned by someone else... do you get any security that way?

Thank you both for coming back to me, oddly, its good to know I am not the only one!

Mum ..

I am so very sorry I've only just picked up this question. Yes, we have security for the rest of our lives here and it's written into the tenancy agreement that we are allowed to pass the house down one generation, so our daughter is safe should she still want to live here. Presumably she would then sign a tenancy agreement with the same issue, so it would self perpetuate.

Certainly to us it still feels like it is our house.

Also, the Housing Association is extremely discrete in our case as it was mortgage resue and never send signwritten vans linking us to them if there's work being done, and the workmen always tell neighbours etc... it's our own house.

At the time this was a very big issue for us, though it is much less so now.

If you do consider this route though be very careful that it is a proper, reputable social housing association as there are a lot of cowboys out there who let you live there for a year and then turf you out to make a nice profit. Your council is likely to be able to recommend someone.

[SpringerSpaniel]

Re: Please help - we are losing our home :-(

Have you asked them to convert the secured loan into a residential mortgage as they had said they would ?

Presumably if they had done this when they had said they would, ie after the former marital home was sold, it would have saved you a lot of interest, and getting this back would improve your position financially at the moment.

If it is a contractual term of any agreement that they would convert the loan in this way, you can sue them for breach of contract if further negotiations fail.

You could in the meantime, after setting this matter out, suggest referring the matter to mediation or arbitration to try and find a solution for everyone.

TOLATA = Trusts of Land and Associated Trusts Act. One of its provisions is that in making any Order about the disposal of the land involved, the Court has to have regard to the welfare of any minors whose home the property is.

Presumably your kids welfare would be improved by staying in their house ?

[SpringerSpaniel]

Re: Please help - we are losing our home :-(

The 'buy to letting' would seem to me a misrepresentation, probably an actionable one. It may also be an attempt to evade provisions protecting consumers but not businesses. This might make the loan agreement unenforceable.

The loan may also have been mis-sold, as quite likely the 'business' overdraft was too.

You may want to involve the FOS; you could suggest that you continue the payments you have been making (if you can) and that they freeze any further action pending resolution of a complaint to the FOS.

For more detailed and more expert advice, you could use the Bankruptcy Association's scheme to get a detailed legal opinion for a nominal fee. You do not need to be bankrupt or likley to go through the bankruptcy route to join them, they cna help with any serious finanical difficulties. I often recommend this option where the family home is at risk due to arrears on secured lending.

[mumisskint]

Re: Please help - we are losing our home :-(

Wow that's amazing thank you!!! My head is starting to feel a little overwhelmed with all the reading I am trying to do to get a grip on this so having it pinned down a little is really good.

It seems to me that I ended up in the branch one day a bit battered, in tears and demanding to see the bank manager who took care of my business (it was a company ltd by guarantee which I put into administration in 2006 and the loan didnt go down with it, I'm an epidemeologist so definitely no property letting in the job description...) and she gave me the loan. It was never really discussed what it was and I think looking back through the paper work they over the last 7 years have struggled to quantify it. I feel with every change in the law, they have added on a disclaimer of one kind or another like its exempt from the CCA as suddenly it is a business loan. They have never specified that it is interest only and not capital as well etc.The interest rate rises seem a clear nod not to assist but to get us out. If they had have converted it then I would be paying the right amount instead I am paying 100% more and have been for two years or so. Does unfair relationships come into it as well or is that just CCA reg agreements?

I asked if they could convert it. My ex husband was very adept at stopping sales from going through. The first bank manager understood where we were, hence the interest rate reflecting mortgage lending, and when we thought there would be a sale he organised a mortgage quote etc. The new manager when I asked him flatly refused and said he was not a mortgage broker. As a result when I havent been working i havent been able to claim mortgage interest help on JSA as its not a mortgage.

Right now I am waiting for the missing bits of the SAR to come through but they have sent me a letter saying they want to know my repayment proposals within 14 days. Im going to send them a letter saying that I am disputing the amount they say I owe and a formal complaint will be filed with them and the FSA / FO when I have received the additional SAR paperwork, and I'll add the part about stopping action whilst dealt with - do you think that will be ok?

I am really worried that in 14 days I will have no where to live and feel I should be boxing stuff up now.


Thank you Thank you Thank you....

Mum

[SpringerSpaniel]

Re: Please help - we are losing our home :-(

You cannot be evicted without a court order.

[SpringerSpaniel]

Re: Please help - we are losing our home :-(

Write saying you will contact them with further proposals once you have received all the information form the SAR and had the opportunity to take any necessary independent advice.

I would dispute the debt on any possible pretext you can as it will reduce the likelihood of being made bankrupt.

If all else fails, the type of mortgage rescue scheme Caspar posted about may enable you to keep your home. You may wnat to start looking inot whether this is available in your area.

However, I think it is worth first looking carefully at enforceability of the loan and whether you might be due any refund due to mis-selling or unfair charges etc.

[mumisskint]

Re: Please help - we are losing our home :-(

Ummmm - why would they make me bankrupt??? There is equity in the house. The loan is for £139 the house is worth £165 ..... would they go for bankruptcy not a repossession?

I have to rent if we get moved out. There are no HA's buying here, I checked today with the Local Authority. I wont be able to rent if I have been made bankrupt, I wont get through a credit check.

[SpringerSpaniel]

Re: Please help - we are losing our home :-(

If you have to rent and have a poor credit rating, you can get a tenancy quite often if you are able to pay 6 months' rent in full in advance, or if you are able to provide a guarantor.

[SpringerSpaniel]

Re: Please help - we are losing our home :-(

I am still looking at the legal points about your loan, you may have arguments under the Unfair Contract Terms Act (UCTA) and/or the Misrepresentation Act (where burden of proof is reversed). The representations made by the bank manager to you orally are still representations, and may have been made carelessly as to whether they were true or accurate, which is negligent misrepresentation.

If this can be argued, you sue them for the difference in rate and any other losses you have incurred as a result.

If you commence such an action, they may well seek to come to an arrangement with you eg convert the loan and accept what you can afford.

If they do seek a possession order, ask for it to be suspended on terms until the youngest child is 18, work out what terms you can offer.

I will post again on this thread tomorrow.

[mumisskint]

Re: Please help - we are losing our home :-(

You say earlier about if I can afford to repay. If I stopped paying then I can save for a 6 month deposit - but that clearly wont look very good ..... :tinysmile_cry_t:
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Awesome! Thank you Springer!

[SpringerSpaniel]

Re: Please help - we are losing our home :-(

Worst case scenario:

The house is sold, but you have c £30K of equity.

You can pay the 6/12 rent in advance from this.

[SpringerSpaniel]

Re: Please help - we are losing our home :-(

Mum, how likely is it that you could get back to work soon, eg in the next 6 months ? Is this something you are trying to do, or is it not practical eg due to family circs ?

This will impact on the advice I would give about the way forward.

[Judge mental]

Re: Please help - we are losing our home :-(

Hi mum;
I've had a look at the terms and conditions of the bridging loan taken out in 04, the interest is set at 2% over the banks base rate, there is no clause giving the ability or authority to change or vary the amount of interest charged. Any time this agreement was effective they charged more than 2% over base they are in breech of that agreement and you would be entitled to recover the overpayment plus interest.

We need to find a history of HSBC's base rate, I will try to look as soon as time and commitments allow
.
Do you have a complete set of statements from the loans conception which shows when any increases in interest were applied, and all charges they have applied to the account?

When did the 04 agreement come to an end? i.e. when was it replaced by another signed agreement, and are you able to post up that agreement?

Stuart