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Secured Loan Help
11 Answers
I'm asking this question on behalf of a friend on the hope that you experts can give some advice.
My friend jointly owns a house with her husband and there is also a secured loan of c�20K. She left her husband last November and he has remained livining in the house and paying the mortgage and loan (or not), she is now my lodger.
Yesterday he said that the Loan company had advised him that he was 3 months behind with the payments and they would go for repossession if he didn't pay. The ex-husband is adamant that he has been paying the loan via a paying-in-slip over the counter at the Bank and that the Bank have lost the money somewhere.
Today he has phoned my friend to advise her that an eviction notice has been received and he has got be out by 19th June.
He says that he has received no previous correspondence regarding the missing payments, is this likely? We don't think so!
He also says that on the 19th June when he is evicted, that they will reposses the furniture in the house as well. Can they do this?
If the Bank trace the money that he claims to have paid in, he seems to think that they will give it back to him (about �1000) but I think that the Bank will send it to the correct account it was destined for in the first place. Is this right?
As far as we know, the mortgage is up to date, it is just the secured loan that is causing the problem. The house has been up for sale since last November but isn't selling.
Anyone got any advice?
My friend jointly owns a house with her husband and there is also a secured loan of c�20K. She left her husband last November and he has remained livining in the house and paying the mortgage and loan (or not), she is now my lodger.
Yesterday he said that the Loan company had advised him that he was 3 months behind with the payments and they would go for repossession if he didn't pay. The ex-husband is adamant that he has been paying the loan via a paying-in-slip over the counter at the Bank and that the Bank have lost the money somewhere.
Today he has phoned my friend to advise her that an eviction notice has been received and he has got be out by 19th June.
He says that he has received no previous correspondence regarding the missing payments, is this likely? We don't think so!
He also says that on the 19th June when he is evicted, that they will reposses the furniture in the house as well. Can they do this?
If the Bank trace the money that he claims to have paid in, he seems to think that they will give it back to him (about �1000) but I think that the Bank will send it to the correct account it was destined for in the first place. Is this right?
As far as we know, the mortgage is up to date, it is just the secured loan that is causing the problem. The house has been up for sale since last November but isn't selling.
Anyone got any advice?
Answers
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repossession is an act of last resort to lenders and there would have been a lot of letters, phone calls and maybe even a debt advisor sent round to find a solution. all of these letters, arrears and legal costs will be added to the debt.
Further to this, there will have been a notice of a court hearing to decide a possession order, upon granting the order it is first suspended by 28 days, more letters are sent, a new hearing occurs to grant the full order and a further 28 days would pass by before an eviction date was set, usually.
I do not believe he has paid anything and if he has, make him hand over the payment slips and go to the bank with him to make sure he makes a complaint - I seriously doubt he will do this, because he is lying,
This is serious and the first lender (mortgage) has no choice but to go along with this.
My advice is to go to the court, apply for a hearing to have the order set aside or suspended, this will cost about �60. Your friend should go with her ex, explain truthfully what has occured and make a committed (and realistic) promise of payments. Your friend is jointly liable and must contribute / take control, or the possession will occur. Courts will always favour with the owners, if they can see that the promises made are sincere and realistic.
When this is done, reduce the price of the house to make it quick sale, but be sure to be 100% clear that the settlement figures for the mortgage and secured loan do not exceed the net value achieved in the sale. If it does, extra will need to be paid by your friend or her ex to settle the matter, or the lenders can refuse to allow the sale to complete.
A lender can chase one, other or both names on the loan, so tel lher to act fast, this can be turned around.
Good luck
Further to this, there will have been a notice of a court hearing to decide a possession order, upon granting the order it is first suspended by 28 days, more letters are sent, a new hearing occurs to grant the full order and a further 28 days would pass by before an eviction date was set, usually.
I do not believe he has paid anything and if he has, make him hand over the payment slips and go to the bank with him to make sure he makes a complaint - I seriously doubt he will do this, because he is lying,
This is serious and the first lender (mortgage) has no choice but to go along with this.
My advice is to go to the court, apply for a hearing to have the order set aside or suspended, this will cost about �60. Your friend should go with her ex, explain truthfully what has occured and make a committed (and realistic) promise of payments. Your friend is jointly liable and must contribute / take control, or the possession will occur. Courts will always favour with the owners, if they can see that the promises made are sincere and realistic.
When this is done, reduce the price of the house to make it quick sale, but be sure to be 100% clear that the settlement figures for the mortgage and secured loan do not exceed the net value achieved in the sale. If it does, extra will need to be paid by your friend or her ex to settle the matter, or the lenders can refuse to allow the sale to complete.
A lender can chase one, other or both names on the loan, so tel lher to act fast, this can be turned around.
Good luck
Firstly, I presume that the secured loan (as well as the mortgage) is in joint names.
If that is indeed the case, then your friend is jointly liable for the debt.
Has she contacted the lender to give them an up to date address?
To be evicted will require a court case and most judges will look sympathetically on repossessions.
3 missed payments would not be a long period to get an eviction order, especially as this is a second charge, not a first charge. All letters pertaining to an eviction would need to be sent recorded delivery to confirm to the courts that the letter had indeed been received.
I suggest that your friend (as a matter of urgency) contacts the lenders and finds out what is going on - and give them her up to date address so that they can copy her in on all correspondence.
If that is indeed the case, then your friend is jointly liable for the debt.
Has she contacted the lender to give them an up to date address?
To be evicted will require a court case and most judges will look sympathetically on repossessions.
3 missed payments would not be a long period to get an eviction order, especially as this is a second charge, not a first charge. All letters pertaining to an eviction would need to be sent recorded delivery to confirm to the courts that the letter had indeed been received.
I suggest that your friend (as a matter of urgency) contacts the lenders and finds out what is going on - and give them her up to date address so that they can copy her in on all correspondence.
Well, I'm afraid what you said doesnt make sense. You said
Yesterday he said that the Loan company had advised him that he was 3 months behind with the payments and they would go for repossession if he didn't pay
and then
Today he has phoned my friend to advise her that an eviction notice has been received
It just doesnt happen like that, one day a threat of eviction and the next day an eviction notice received.
Either your friend has got confused or, more probably, her husband is lying. Perhaps he would like her to contribute towards the mortgage and loan? I would suggest she goes and talks to her husband about the problem before it does turn in to a repossession (but that would be some way down the line from what youve said).
Yesterday he said that the Loan company had advised him that he was 3 months behind with the payments and they would go for repossession if he didn't pay
and then
Today he has phoned my friend to advise her that an eviction notice has been received
It just doesnt happen like that, one day a threat of eviction and the next day an eviction notice received.
Either your friend has got confused or, more probably, her husband is lying. Perhaps he would like her to contribute towards the mortgage and loan? I would suggest she goes and talks to her husband about the problem before it does turn in to a repossession (but that would be some way down the line from what youve said).
I'm not bothered whether it makes sense or not, that is what the ex-hubby is claiming. My friend isn't confused as I was present when he sat in my house and told her about the late payments and also when he told her over the phone about him being evicted on the 16th. I think you have probably hit the nail on the head when you say that he is probably lying. That is why I am asking for advice, we know that it is unlikely to work like that.
I think it is past the stage of talking now, we just wanted to know whether the things he is telling her are possible (I have no idea how the repossession system works, I pay my mortgage and loans!) or whether he is lying through his back teeth.
Neither of them actually want the house but are unable to sell it and I doubt that either of them can afford to repay the arrears so it looks like repossession is going to happen.
I will tell my friend to advise the Lenders of her current address so that at least she should be kept informed of what is happening rather than hear it from him.
Thanks to all 3 of you for your advice.
I think it is past the stage of talking now, we just wanted to know whether the things he is telling her are possible (I have no idea how the repossession system works, I pay my mortgage and loans!) or whether he is lying through his back teeth.
Neither of them actually want the house but are unable to sell it and I doubt that either of them can afford to repay the arrears so it looks like repossession is going to happen.
I will tell my friend to advise the Lenders of her current address so that at least she should be kept informed of what is happening rather than hear it from him.
Thanks to all 3 of you for your advice.
Fair enough - "neither of them actually want the house". But she must bear in mind what others said, that if the loan & mortgage are in joint names (& I agree with Ethel - the lender will not remove her name unless fraud is shown, or possibly if she can prove she did not have independent advice) she can be chased for all of any shortfall after the house is repossessed and sold. And it will be sold at a lower price than if it was not repossessed, & with a lot of costs added on which will increase the debt.
The fact that her husband is also a joint debtor does not prevent the creditors chasing either one (or both) of them for the full amount due.
The fact that her husband is also a joint debtor does not prevent the creditors chasing either one (or both) of them for the full amount due.
With regards furniture and other personal effects post-possession, when bailiffs change the locks it would be usual for an appointment to be made to be able to go back and take any possessions not already collected.
It is not usual for goods to be left in the street as a claim can be made for anything that goes missing, they have a duty of care, regardless of the circumstances.
It is so easy to solve though - get down to the court house, present a sensible case, as per my previous advice and reduce the house price to sell quick.
Neither of them may want the house, but they will have a debt hangover whether they like it or not ! Its time to get back into the real world and consider their predicament like adults.
It is not usual for goods to be left in the street as a claim can be made for anything that goes missing, they have a duty of care, regardless of the circumstances.
It is so easy to solve though - get down to the court house, present a sensible case, as per my previous advice and reduce the house price to sell quick.
Neither of them may want the house, but they will have a debt hangover whether they like it or not ! Its time to get back into the real world and consider their predicament like adults.
Hi, I know a company who will offer you free help. The company website is http://www.securedloannow.co.uk, they have a team of financial advisers who will answer any questions that you have and you can contact them by e-mail or over the phone.
Hi, I know a company who will offer you free help. The company website is http://www.securedloannow.co.uk they have a team of financial advisers who will answer any questions that you have and you can contact them by e-mail or over the phone.
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