If you are still struggling and your mortgage company issues a default on your mortgage, make sure you keep ringing them to let them know what is happening.
Also go to organisations like National Debtline and other non-profit making charitable organisations that will try and sort out your finances. Speak to Citizen’s Advice, find out your rights and be realistic. If you owe your mortgage company £10,000 of arrears are they really going to be interested in your brilliant offer of £2 a month when you haven’t paid anything for years?
In terms of outgoings, most people reckon they pay about £100 in bills, never spend any money socialising or eating and use magic beans to pay for school clothes. Don’t be a plonker. Be honest about what you spend.
If you still can’t work out a way to clear off your arrears and you get taken to Court, then make sure you have some sort of repayment plan and can back it up with pay slips. The District Judge isn’t going to be very impressed with you sobbing about how evil your mortgage company is if you haven’t paid them anything for two years and don’t intend to pay anything either.
I would also speak to the local Council’s Housing Department and find out if they are still running any Mortgage Rescue Schemes, or Breathing Space Loans. Most aren’t, what with the regime of Government spending cuts, but some are.
Also, find out if your mortgage company can help you. They might offer things such as interest-only periods, help sell your house, agree to reduce your fees or capitalise your arrears. They probably won’t, but no harm in asking as most mortgage companies have to show that they are trying to do something to assist people who have a genuine reason for their arrears.
But whatever you do – always keep in contact with your mortgage company. If you go off the radar, the more likely they are to think this joker isn’t going to pay anything, let’s repossess them before it gets any worse.
And most importantly, at the end of the day, its only bricks and mortar. It’s not a person, it’s not your health, and it’s not your family. Keep perspective.
