House Repossession

[Lisa594]

Hi

I wonder if anyone could advise on this. a neighbour has just had her house repossessed after taking out a secured loan for £12k she missed 3 payments and they repossessed the house 3 days before Christmas.

The house is worth £170k and now on the market, am I correct in thinking any money over the redemption figure of about £23K will go back to her as she had nothing owing on the house before. She has a son who is working (she is disabled and on benefits) if he was able to raise the £23k would they get their house back or has it gone too far now?

It all comes down to companies lending money to people who just can't pay it back, she was struggeling before taking out the loan and now they've taken her house all for £12k.

She is in a B&B and having an operation on her knee next week, and keeps taking of what she could do to get out of this mess, if anyone has any advice I would be really grateful, I think it has gone too far with the house already taken but she didn't tell anyone not even her son, he came home from work to find the locks changed. I only found out the whole story today.

Lisa

[Adam Davies]

Hi
It would be worth her son contacting the creditor and asking if he can pay off the outstanding figure.
What a horrible situation
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

I am sure that the creditor concerned would rather have their money back rather than having to sell the property first, but it is a shame that she did not think of this prior to the hearing rather than afterwards. Did she attend the possession hearing?

When the property is sold, she will of course be entitled to any residual balance, so perhaps downsizing to a smaller property would be a better option.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Storm]

I would also suggest getting all of the legal documentation / letters together and popping down to your local citizens advice.

I am a little confused about the loan structure.... a non regulated secured loan has to sit behind a mortgage ??? else it needs to a first charge mortgage / loan which is regulated.(depending on when it was taken out)

[Andrew Graveson]

This does seem odd.

As Storm states a secured loan would have to sit behind a mortgage. Was the secured loan taken out before the original mortgage was paid off?



Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[ray_a]

I wonder whether anything will be left if I am being honest here as the Mortgage companies now have control over the sale and will try and sell it as quickly as they can. Being honestly frank here and not wanting to alarm you I don't think there will be much left and obviously i am sorry to read about this!

The lesson here is if facing a situation like this you must kep talking to your creditors and cooperate with them. If faced with a possession order threat please go to the court and deal with it as the courts are sympathetic and will generally give you a suspeneded order and even allow you to sell the property on your terms!

A lesson for all of us to learn!

[Lisa594]

Hi

She def didn't have a mortage before this so it was a first charge.

Do you really think there won't be anything left, the house is up for £165k she owes £25 at the moment, supose this is going up all the time though.

She's going into hospital on Monday for a replacement knee and doesn't know where she's going after as b&b not suitable so told he to make sure she tells the physio she is homeless, they shouldn't discharge her without suitable housing, but not a good use of NHS resourses.

Have told her a few options, bu tshe's so depressed about it she doesn't want to do anything to get her house back now, too ashamed to face the neighbours if she gets it back, really bad as she's lived there for 20 years.


Lisa.

[Adam Davies]

Hi Lisa
Try to make an appointment with the CAB,you neighbour will need advice regarding her housing situation and on this repossession order.
It really does seem such a sad story

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[homebuyer]

Hi lisa,
I think this is not totally a useless situation. so many people have found themselves in similar position. we are ethical homebuyer and i am sure the lender will show mercy if we agreed a solution with them.we have helped many people in similar situation. i hope it is not too late.