hi i have a second charge on my house which i am in arrears of £2400 monthy payments £465 Endeavour finance (norton finance) have issued a repo notice due in court June 22 i have spoken to them offerin a payment of £800 now and staged payments to get back to normal over 6 months + then restuctuing the loan over 20 years..but NO they want full monthly payment + £70 extra to pay off arrears...would they be able to repo the house as they are 2nd charge..1st charge is with Woolwich no areaars there ???????

-- garybrown (garylondon1000@yahoo.co.uk), May 22, 2004

Answers

Firstly and most importantly YOU MUST GO TO THE HEARING IN PERSON.

Secondly - yes, they are able to repo the house BUT they are most likely to end up with a suspended possession order on terms EVEN if you have agreed a repayment schedule before then. This means that the possession order and a judgment for the £2400 plus costs is "held over" so long as you pay what is due under the court order (this does not appear on your credit record)

If you default again, then they can go back and order a Warrant of Possession and the Bailiff will ultimately evict you.

Other alternative is to pay them the £2400 plus any costs before or at the hearing - a judge cannot make a PO, suspended or not, if there are no arrears.

This highlights the dangers of securing either loans or second mortgages against property!!!!

Once again, I stress garybrown, GO TO THE HEARING, IF YOU DON'T THE JUDGE WILL MAKE AN ORDINARY 28 DAY POSSESSION ORDER WHICH IS NOT SUSPENDED!!!!!

-- David J. Button (davidjohnbutton@supanet.com), May 24, 2004.

thanks for u answer...but have u any idea if the judge would make me pay the full monthly payment or would he get lender to restructure if pos as i said monthly payment is 469 they want 550...icant pay 2400 dont have it

-- gary brown (garylondon1000@yahoo.co.uk), May 25, 2004.

The normal route is to order that the monthly payments be met plus a sum off the arrears each month on top.

Under the Norgan rules, the arrears can be paid off over the rest of the lending term - this normally applies to mortgages rather than lending secured against the property for other purposes but there is no reason why the Norgan rules should not be applied to any possession order request.

Note that should you default on the arrangement - which it is best to get set up with the lender before you go to court hearing (then the judge can just "rubber stamp" it") - then the lender can obtain a warrant of possession whereupon the bailiff will evict you.

Make your offer one that you can afford and that you can show you can meet as for the judge to suspend the warrant, there has to be a reasonable chance that the debtor will be able to pay given time.

-- David J. Button (davidjohnbutton@supanet.com), May 26, 2004.

ok thats clearer..ias i said i did offer £800 + staged payments which they refused they want as you say full monthly payment + 70

do you think if i ofered no lump sum but full monthly + 20 they would then agree (then the 800 would be as resever ??

-- gary brown (garylondon1000@yahoo.co.uk), May 26, 2004.

You need to put the proposal to the lender with the question "If I offer you the full monthly payment of £x together with £x a month off the arrears, will you agree to a suspended possession order"

When they say yes, you have an agreement - you both attend court and the judge makes an order for suspended judgment and PO on those terms.

-- David J. Button (davidjohnbutton@supanet.com), May 27, 2004.

hi thanks for your info ...i offered the 550 no lump sum as i can use that in other areas...then they informed me that the arreas had increased as i had missed a payment and was i paying the lump sum hell no i wasnt so now i have a revised figure of 580 per month that will clear the arrears in 3 years....so now i need to make it my priority payment each month Thanks for your info

-- gary brown (garylondon1000@yahoo.co.uk), May 27, 2004.