Your views and questions.

Moderators: TalbotWoods, JaneClack

By rogie27
#300193 I have negative equity on my property, am up to date with mortgage payments but am struggling to pay a secured loan, I have agreed through their solicitors to pay a reduced sum of £200,there is a suspended repossession order on the property with same lender from 2 years ago when my income decreased, I am now struggling with £200 payment due to further loss of earnings. The £200 arrangement is in place for 6 mths but it said on the letter that my account with lender is due to expire next month(what does this mean)? Can the secured loan lender force repossesion even though they wouldnt get a penny? please help
secured loan arrears £1600 total balance £2800
mortgage Bal £125k home worth £95k
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By TalbotWoods
#300203 Theoretically they could go back to court for an order for sale, but for £2800, they are more likely to go back for an Charging Order (with the option of applying for statutory interest* per annum added (currently 8%).

This means the pressure will be off, but when you sell, eventually then you will have to pay them back out of any proceeds, left after the main mortgage has been paid off.

HOWEVER......

As the property is currently 24+% under LTV, they may feel that by pushing for sale, they could be doing you a favour, as it will be many many years before house prices recover to that extent, especially as roughly they have only fallen 10 -15%. They may also consider that at the moment you are paying minimum mortgage repayments when the interest goes up, they could see themselves loosing out completely.

But as I say , for £2800 I doubt they would go for a procession, but that wont stop them threatening!

(*The statutory interest will add up for example over just a 5 year period the debt will go up from £2800 to about £4100)
By rogie27
#300213 Thanks for reply, would they push for sale even though Im not in arrears on main mortgage. Am currently back to normal repayments after being on interest only payments for 12 mths and being on maternity leave. I have 3 kids and am separated, would a judge take this into consideration? If they did go for charging order that may not be so bad :