Mortgage Arrears Counselling

 

DMS is the market leader in mortgage arrears counselling and the identifying of a Customer's problems at an early stage is a proven method of reducing the levels of arrears experienced by the Lenders and helps nurture long term relationships.  As an independent intermediary, DMS is able to secure a Customer's confidence, ensuring that the best available solution is achieved on behalf of the Lender.

The nationwide network of DMS Counsellors ensures that all Customers are easily accessible. The DMS comprehensive printed Fact Find Report gathers all the relevant information necessary to evaluate Customer's short, and more importantly, long-term solutions. A report is completed in every case and where it has not been possible to make contact i.e. abandoned/tenanted properties, a property inspection is undertaken and local enquiries made to ascertain the whereabouts of the Customer. 

Customers feel more at ease discussing their situation in the comfort of their own home and the DMS counselling service aims to establish the following: 

  • Identification of the Customer's historical and current problems.

  • Income and expenditure details verified wherever possible.

  • Long-term solutions offered and payment plans arranged.

  • Advice on debt prioritisation, budgeting and maximising DWP benefits where appropriate.

  • A property inspection and a comparable valuation is obtained from a local Estate Agent.

Areas which utilise the DMS Counselling process include:

Front End and Pre-Litigation Mortgage Arrears Counselling

We will complete a Full Fact Find report on the Customer's current personal and financial circumstances, ascertaining at an early stage the reasons for the Customer's arrears.  Our fully trained Mortgage Arrears Counsellors will complete an income and expenditure analysis, evaluating how much the Customer can afford to pay, in line with mandates set by the Lender.   We will discuss DWP benefits, debt prioritisation and the consequences should they continue to default on the mortgage repayment.  A face to face interview re-establishes contact and demonstrates to the Customer that the Lender cares and wants to find a way forward, avoiding litigation wherever possible.  It will also give the Lender invaluable information as to whether or not litigation is the correct solution and identifies the chance of recovery.

Post-Litigation Mortgage Arrears Counselling

DMS will visit the Customers and reinforce the terms of any Suspended Possession Order.  A reduced fee is charged here, as we will not be completing a Full Fact Find.  We explain the Suspended Possession Order and the consequences if they continue to default.

Pre-Eviction Mortgage Arrears Counselling

Many Customers just "give up" or "bury their heads in the sand" after an SPO has been defaulted on and a warrant is issued for eviction.  A visit from one of our Counsellors 10 to 14 days before the eviction date can avoid this course of action continuing.  Our Counsellor will explain fully how a Customer can avoid the eviction by paying the arrears in cash prior to the eviction.  Where this is not possible, we will supply information as to the condition of the property and the likelihood of any problems during the eviction process.  We will obtain a forwarding address to assist in the recovery of any further shortfall after sale.  DMS will also inform a Client of any abandonment, to speed up the eviction process on the day.  This is a shortened questionnaire style version of our Fact Find and the fees reflect this.

Collection Visits

Occasionally a Lender may only require DMS to visit a Customer to collect a payment.  This is particularly useful where a Direct Debit has failed or has been cancelled.  The Lender may not require a full interview or a Fact Find.  The Customer may only ever be one or two months in arrears and it may be for an instalment that was missed several months previously, and a quick visit to rectify this may suffice.  An additional benefit here is that our Counsellor can obtain a new Direct Debit or Bankers Order whilst with the Customer.

Confirm Occupancy Visits

DMS will visit a security address to confirm who is in residence.  It may be an unauthorised letting, abandoned property or the Customer is just ignoring correspondence for no good reason.  If tenants are found to be living at the security we will attempt to see a copy of any tenancy agreement, obtain rent details and hopefully confirm a forwarding address for the Customer.

"Mystery Shopper"

The performance and efficiency of Estate Agents varies across the country.  We will provide a report on these aspects by visiting the Agent selling the repossessed property.  We will complete the visit anonymously, verifying that sales literature is correct and that the property is advertised in the Agent's office and window.  Our Counsellor will make comments as to the suitability of the Agent and whether or not we were offered the repossessed property.  A visit is then made to the property to see if the Agent has erected a "For Sale" board, verify that the gardens and interior are maintained satisfactorily and the property is secure.