Hi does anyone know what happens if you can't pay a 2nd charge mortgage. I assume they can apply for possession but would they actually get it as what we owe on our first charge is more than the house is worth?????
I have no idea on that one i just wanted to say that you have not been forgotten and that someone who can help will be along soon to help.
Sorry that i cant help you.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
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I fear that we will see more and more of this problem through the next 18 months.
Firstly your second charge is a mortgage and they play by the same rules as the first mortgage provider. i.e. miss 3 payments and they will probably commence possession then reposession proceedings.
usually the 2nd charge is a full repayment mortgage so they may be prepared to look at reducing the payments so that they don't get to the court position.
You must however look at the whole picture ( secured and unsecured debt otherwise the solution chosed is usually wrong.
For example if one was to petition for br then 8 months later loose the house due to missed payments it is likely that this would be a new debt and not recorded in Br. So out of the frying pan into the fire.
I would recommend you review what the rental situation is locally as many of my clients in similar positions were paying £1800 per month and can rent a comparable or often better house for £1000 pm. It is the second charge that usually kills the posibility of staying in the house and it has become a burden rather than a home.
I am not familiar with the whole situation but you should really review the whole position before spending any more money servicing 1 mortgage but not the other.
hope this helps
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
Just to add to Paul's post. The 2nd charge lender cannot do anything without the permission of the 1st charge lender (your mortgage company). however, providing that permission is forthcomming, they can go for reposession.
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
2nd charge
Posted - 18 September 2008 : 18:51:52
