Mortgage Rescue Procedure
'Mortgage rescue took the pressure off of us, we were able to clear our debts. Because the debts were cleared we felt able to make a fresh start with the lessons that we learned from the experience. We learnt lessons about how to manage money. Now instead of feeling pressured we have a nice quiet life and that is worth not owning the house'
Mr & Mrs N, Llandaff, Cardiff - July 2009
Our Mortgage Rescue Procedure was updated in April 2009
Initial Referral
Referrals may be received from any source, including Housing Advice/Homeless Teams of Councils, Shelter Cymru, CAB or Hafod's Area Housing Teams via enquiries or housing applications received. Self-referrals can also be considered. Initial enquiries should be referred to the Home Owner Services Officer (Andrew Goss) who will take full details and complete a standard Mortgage Rescue proforma should intervention be considered possible.
Completing the Mortgage Rescue Proforma
The following information should be obtained:
· The address of the Mortgage Rescue property to ensure it is in either of the following areas; Bridgend, Cardiff, Merthyr Tydfil or RCT.
· Full details of family composition, children, non dependent children and details of illnesses
· Details of the home owners' disability.
· Details of adaptations in the home.
· Employment status or benefit entitlement.
· Full details of the secured and non-secured debt position (quoting amounts required to redeem loans and the monthly payments required). Wherever possible current redemption statements should be obtained for all secured loans and non-secured debts which are at risk of becoming secured via a Charging Order.
· The terms of any legal action taken or threatened should be recorded. Where the owner is at risk of eviction because of an extant possession order or where a full possession order is being sought a referral should be made to Shelter Cymru to defend any legal action and seek further time for Hafod to intervene.
· Applicants who are not at risk of legal action should be refused to the appropriate debt advice organisation.
Decision Making
The following details should be clarified when making a decision:
1. Is the address of the Mortgage Rescue property in either of the following areas; Bridgend, Cardiff, Merthyr Tydfil or RCT. (If it is not we are unable to help.)
2. Do the circumstances of the home owner meet WAGs criteria for a mortgage rescue i.e. threatened with court action / court action has commenced / home owners disability / adaptations. (If it is not we are unable to help.)
3. Will the local authority support the mortgage rescue? Usually this will assessed on whether the home owner would be a priority case if made homeless and whether they fit WAG's criteria for mortgage rescue. The local authority should complete and return an ‘Applicant Eligibility Form' if they want to support the mortgage rescue. (If it is not we are unable to help.)
Keeping Partners Informed
1. The Home Owner Services Officer (Andrew Goss) will copy in referrers (LAs / Shelter Cymru) on the development each stage of the mortgage rescue case.
2. Once a month the Home Owner Services Officer (Andrew Goss) will send a summary of mortgage rescue cases dealt with to each local authority.
3. Home owners will be provided with the mortgage rescue timescales and contacted on a regular basis to keep them informed of the process.
4. Final decisions will be relayed to the home owner / referrer / local authority.
5. Where possible all decisions will be relayed by email.
Making an Offer
1. The Home Owner Services Officer (Andrew Goss) will make an offer to the Home Owner. The offer will request details of the Home Owner's solicitors if the offer is accepted.
2. Once the home owner has accepted the offer the Development Department will submit the SHG Grant claim to WAG for funding.
3. Once the home owner has accepted the offer the Home Owner Services Officer (Andrew Goss) will refer the case to our solicitors (Chris Bryne - Hugh James Sols).
4. The Home Owner Services Officer (Andrew Goss) will inform:
a. the Estate Management Team
b. Income Recovery Section
c. Maintenance Team
d. Administration
e. and Development Department
Signing Up
1. Upon completion the solicitors will arrange for the tenant to sign the tenancy agreement which is forwarded to the Home Owner Services Officer (Andrew Goss). The tenancy date will be the date of sale completion.
2. The Home Owner Services Officer (Andrew Goss) will forward the new tenancy to:
a. Development (Christine Griffiths) to go on to QLX
b. The Estate Management Team to:
i. Arrange a visit
ii. Provide the tenancy pack
iii. Clarify occupant details
iv. Housing benefit
v. Establish whether tailored services (communication / adaptations / support) are required
vi. Complete the Mortgage Rescue Questionnaire
vii. Complete the Lettings & Leavers form
3. Rents are set at the (WAG) Benchmark level
4. The Home Owner Services Officer (Andrew Goss) will make a debt referral (on behalf of the former home owner) to Stuart Locke, CCCS (DRAMA Scheme).
5. The Home Owner Services Officer (Andrew Goss) will update the Mortgage Rescue Summary Sheet.
