I recieved a letter from my mortgage company 9GMAC-RFC Lted) 2 weeks ago via a company called Eversheds acting on their behalf.

They wrote informing me of £621.00 arrears and requested in writing no tlephone how and what I was going to do about it, and if they didn't hear from me in 7 days they would issue repossession proceedings for court.

I replied by recorded delivery the next day enclosing 2 post dated cheques (1 for £321.00 for the 25th July 2001 and the other for £300.00 for the 25th August 2001, stating the reason being paid on a monthly basis). I asked them to confirm in writing if this arrangement was alright.

Today I recieved another letter from Eversheds, quoting: -

We write further to your recent letter in which you put forward proposals. We confirm that the proposals you have made are not sufficient to stop legal action, however provided both of your post dated cheques clear our client has instructed us to incorporate a Suspended Possession Order at the Court Hearing.

I have no idea what to do next, do I get a Solicitor, When the court hearing is or what action to take next?

Please advise I am worried sick.

Kind regards Michelle

-- Michelle Tilney (michelle.tilney@laurelpubco.com), July 16, 2001

Answers

At 2 months arrears, this company AUTOMATICALLY refer the matter to Eversheds. E will issue proceedings for possession based on the arrears - you have 3 alternatives:-

1. Reduce the arrears below 2 months immediately and before they issue the proceedings. That will halt the issue of a summons. Advise GMACRFC that you are paying and confirm they have the payment and have stopped the proceedings.

2. If you cannot pay the arrears and the summons is issued, pay the money before the court hearing and then YOU MUST go to court, I stress, YOU MUST ATTEND, and the Judge will dismiss the case but you will have to pay costs - about £300

3. If you still have arrears when the summons is issued, fill in the admission and attend court as per 2 above, and what will happen is that the possession order will be suspended upon you paying x amount plus the current monthly mortgage payments.

If you end up with a possession order, this does not mean a black mark against your record because the whole matter is suspended. If you do not then pay, you lose your home as the order for possession is enforced.

You do not need a solicitor and the court hearing is approx 6 to 8 weeks away. Use that time to reduce the arrears or clear them.

Hope this helps - if you need further - please e-mail me.

-- D J Button (davidjohnbutton@supanet.com), July 16, 2001.

Further to the above.

It is important to avoid having a suspended possession order over your property if at all possible. It makes it a lot easier for them to repossess at some future date - they just ask for the order to be enforced as the grounds are considered already proven.

I am surprised that they are pursuing this so vigorously giving the small amount involved. My view is that provided your first cheque clears they will not proceed. Their statement re 'provided both clear we will suspend' is nonsense. If both cheques clear, there are no arrears and they have no grounds to pursue a repossession - suspended or otherwise, so the magistrate won't grant it or award them costs, and it would be viewed as a waste of court's time.

Given the small amount involved, would it not be possible to get or extend an overdraft to cover it? Thereby repaying it sooner and completely removing the threats of court action. I don't normally advocate borrowing money to repay money, but the small additional cost might be worth the peace of mind.

Final point to consider once this is resolved: is this the sort of company you want to have your mortgage with? If this is how they treat you? Who is this company anyway?

-- (bluemoon@mcfc.co.uk), July 17, 2001.

Yes the last answer is correct also. GMAC RFC is part of the General Motors Acceptance Corporation Residential Funding Company. If you go to get a Vuxhall car on HP you would deal most probably with GMAC to provide finance - RFC was formed a few years ago as the Residential Lending arm providing mortgages to either people with less than satisfactory credit, or who, for other quite acceptable reasons (i.e. wanting a non-standard mortgage to buy 2 properties for example) cannot go to a mainstream lender.

How do I know - I am one of their customers too. They operate on a no-nonsense attitude and if you are more than 2 months in arrears you can expect them to take possession proceedings - after all, if you were 2 months in arrears with your landlord's rent, he too can take a possession order out - what is the difference?

Advice to the borrower is, dont bury head in sand, contact them, give them dates for payment and stick to it.

-- David J. Button (davidjohnbutton@supanet.com), July 17, 2001.

Thanks David,

Its a hell of a catchy name for a firm.

-- (bluemoon@mcfc.co.uk), July 18, 2001.