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Fresh Start
Junior Member
172 Posts |
 Posted - 14 April 2008 : 15:20:04
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Please can you advise. I put my house up for sale a short while ago, and I received an offer, below the asking price, but reasonable given the current climate. I have a mortgage and a secured loan. The offer will cover the mortgage, legal and estate fees and will contribute about 25% towards the secured loan.
The secured loan company has a 'legal charge' on my property, but what I cannot seem to ascertain is if they can actually stop me from selling my house to the purchaser? They will receive all of the remaining proceeds, and I will then owe them the shortfall? is it as simple as that? I am in arrears with both mortgage and secured loan (4 months), hence the reason for the sale, but no repossesion order or anything like that has happened yet. My purchaser wants to exachange asap, everything is place, and obviously I would prefer to sell than to voluntarily hand back my keys etc. I spoke to the secured loan company and they said they would not allow me to sell as the shortfall was more the 50% of what I owed. But I have not received this in writing and therefore would like to know if they can stop me?
Any advice would greatly appreciated, as, with other threads, once I have sold I intend to declare BR as I am unemployed now, and am struggling to find employment, and have huge debts! Thank you. |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 14 April 2008 : 17:38:26
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Hi Freshstart,
Welcome to the forum,
The secured lender could stop the sale proceeding if they will not accept the offer of 25%
Out of interest who is the secured lender?
Have you explained in writing to the lender your situation?
I would inform them that you are in arrears and facing possession proceedings in the near future, other than that it is your intention to hand the keys back to the mortgage company whereby the secured lender would likely get less money.
I would go via your solicitor as they can liaise directly with the legal team of the secured lender I have found this to be more effective when trying to get house sales through where they are in negative equity.
Once the house sale has gone through you will owe any shortfall to the secured lender as an unsecured debt which will be written off as part of the Bankruptcy.
I hope this helps.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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Fresh Start
Junior Member
172 Posts |
Posted - 14 April 2008 : 18:39:25
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Hi Brett
Thank you for your reply. The lender is First Plus. I wrote to them last week, but have not heard anything yet. I have called today, but was put through to an answerphone from the customer service team. I will call again tomorrow and try and speak to someone more senior who can make decisions.
I will ask my solicitor to speak with their legal team directly, although when I spoke to her today, she didn't offer to do that, only to schedule out the amounts and fees so that FP could see I was not going to gain from the sale.
As you suggest, either way, I will wait until either the sale or handing back the keys before BR as I understanding the timings here are crucial to ensure I really do get a fresh start.
I have also read something about applying to the court to sell your own property something to do with The Trusts of Land & Appointment of Trustees Act 1996 - has any used this or experience of it?
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 14 April 2008 : 18:46:19
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Hi Freshstart,
You can do this, but again you would need permission form the second charge lender for the sale to go through so I don’t really see it would help your situation.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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melanie_giles
Senior Member
1191 Posts |
Posted - 14 April 2008 : 21:00:39
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I can recommend a great firm of solicitors who have an impressive track record in negotiating settlements with secured lenders - including First Plus. If you want their details, please drop me an e-mail via my website and I can put you in touch with them.
And on a technicality, the secured lender cannot stop you from selling your property, but they can prevent the purchaser from getting good title - a subtle difference but worthy of note for the future.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 15 April 2008 : 12:22:55
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A good point Melanie, but I would like to see a purchaser’s solicitor who would advise their client to complete on a property where they do not have good title and a mortgage company who would be happy to lend on a property without full title!
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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Fresh Start
Junior Member
172 Posts |
Posted - 15 April 2008 : 21:08:30
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thanks Melanie. I will contact you for the details as I feel its worth at least a try before handing back the keys.
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melanie_giles
Senior Member
1191 Posts |
Posted - 15 April 2008 : 22:28:45
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Have e-mailed you back this evening. Please mention my name when you call, as they may wonder where you have got their details from.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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I want to sell my home!
