Due to the break up of my relationship with a partner and a spell of unemployment, I have gone into arrears totalling #5949.12.

I am now in employemnt and offered, when taken to court over the arrears,to pay the normal monthly repayments and an additional #100 for the arrears. I have done this for the last few months. But it has caused me to get into debt with other debtors.

I have put the house for sale at a price which will not only pay off the Building society's total debt, but also provide me with some capital.

I now have purchaser for the full asking price and have progressed through the initial stages of selling. i.e. exchanged solicitors and had the survey of my property. The sale is expected to complete before the end of November.

To reduce my debt problems. I have written to the Abbey National asking them if I could pay #400 per month instead of #688 until the sale completion.

Their Solicitor has written to me stating my proposal is unacceptable and that unless the shortfall of #288 per month is paid and kept up, they will issue a Warrant of Possession.

However, they have acknowledged the sale situation and asked me to keep them informed.

What can I do to avoid this and maintain payments of #400 till completion?

Jason

-- Jason Wade (bwade1@btinternet.com), September 21, 2000

Answers

Carry on with your sale, and write back to the lender again, emphasising the point that they will get all their money and the arrears, which is more than what they'll get if they go through repossession. State that completion is to be before end NOvember. Although you've told them once, telling them again and again won't hurt.

If they do press ahead with repossession, they have to go through the Courts anyway, which requires forms being sent to you and a date given for the hearing, which could be a month or so away. If this happens, then you'll be near to completion anyway. So when you go to Court you can tell them all whats been happening, and you'll more than likely get a possession deferred for a couple of months to allow completion of the sale.

Pay what you can for the time being, as something is better than nothing.

Pendle

-- pendle (pendle@amun-ra.demon.co.uk), September 21, 2000.