secured loan

[carlaauty]

Can anyone help ?? 18mths ago my home was repossessed which had a secured loan on it i kept the lender informed throughout the repossession & they where very understanding as no monies where being paid on the loan,nov 2005 the bank sold the property & ive not spoken to the loan company for approximatley a year & theyve made no attempt to contact me.i recieved a copy of my credit file from experian last week which should a debt of �27,019 to my loan company which was entered in jan 2006.1st i only borrowed �15,000 5yrs ago so theyve charged me �12,000 plus in interest,should this not of been frozen & the time the repossion started & would this loan not of gone with the propertyeven if there wasnt enough money to pay it off with it being secured on the property? As how can i now be responsible for a secured loan when its not secured on anything i own,can anyone help as im not sure how i stand the lender has still not made any attempt in contacting me.

[CheekyChops]

When the Bank sold your house after repossession, they would have taken the money that you owed them. Assuming the loan people had a 'second charge' on the property, they would/should have had their money from whatever was left. If there was none left after repaying your mortgage, or there wasn't enough, then you still owe them.

As for freezing the interest, did they actually say at any time that they would freeze it? It is usual for lenders to continue to charge interest unless you have come to some arrangement with them. Add on top of the interest all kinds of fees for non-payment and it soon mounts up.

[Oneeyedvic]

I Concur with Cheekychops - they have not pursued you so far as they obviously feel that you have no money. The debt is still there and you will more than likely find that they will contact you every couple of years or so. SO long as they keep in contact every 6 years, they can keep the debt active (and keep mounting on interest).