Charging Order papers received

Pere_Ubu

I have posted several times here regarding my situation with First National/Asset Link. Well, my husband and I have now received papers regarding Asset Link applying for a charging order, they have an interim one until the full hearing in November. We are going to appear and are in the process of filing a letter opposing the charging order. One of the arguments to help us is if the loan originally could have been secured on property from the offset (which it could have done) then they can't apply for a charging order now? However, the original agreement for the loan was First National who then sold on the debt to Asset Link. Won't they argue that these arguments can't be used as they were not party to the original agreement, the original agreement for the loan was between us and First National.

Any advise would be greatly appreciated.

jonesMUFCforever

Without seeing the terms and conditions of the original loan which you would have signed its impossible for us to say.
I would think that somewhere in those terms it could be possible for them to do what they are doing but I hope you are having professional help with this and not doing it yourself.
Eric

MarkyMarkD

What's your issue with them gaining a charging order? It doesn't entitle them to repossess your house, just to claim their funds if and when you choose to sell it if I understand correctly.

AGB863

MarkyMarkD wrote:

What's your issue with them gaining a charging order? It doesn't entitle them to repossess your house, just to claim their funds if and when you choose to sell it if I understand correctly.

This is correct, a charging order sits on the registry of the property, so that any future sale of the property would raise a query which means that the debt would have to be paid from any profit you make on the property, but they can not force you to pay the debt until then.

crystal_clear

AGB863 wrote:

This is correct, a charging order sits on the registry of the property, so that any future sale of the property would raise a query which means that the debt would have to be paid from any profit you make on the property, but they can not force you to pay the debt until then.

I have read a little on these charging orders and if i am to believe all i have read then can they not accrue interest on this outstanding balance unless you have an agreed payment plan with them that is interest free if maintained. Also if you pay off the debt before selling the home in question you can i believe have the charging order lifted from the property...

Please dont take my word for this i am no expert but CCCS or Payplan may be able to clarify this in more detail. I read on another thread that 35,000 charging orders were issued over the last 12 months turning unsecured debt into secured debt wow !!!!!!!

Robert_Sterling_3

I think that when one borrows money there is a legal requirement that you pay it back in accordance with the terms and condition of the loan.
Because borrowing to buy your house usually involves a large debt there are provisions made to ensure, as far as is possible, that in due course the money is repaid. This involves the house owner giving a mortgage to the lender. [ Most buyers think that they get a mortgage from the lender. This is not the case. They actually get a loan from and give a mortgage to the lender.] The mortgage allows the lender in certain circumstances to sell the house. This form of loan is called a secured loan.
With an unsecured loan you are still required to keep to the terms & conditions of the loan. Failing to make the appropriate payments may lead to a county court judgement being made against you. Failing to fullfill the requirement of the CCJ may lead to a charging order being made against you. In this case the charging order ensures that in the event of a sale of the property the charge will be made known to concerned parties.

Further Information Here

The charging order strikes a balance between the interests of the defaulting borrower and the lender.

Bossyboots

Someone holding a charging order CAN apply to the court to force a sale. It would then depend entirely on the circumstances of both parties as to whether an order for sale is made but it is possible to achieve this.

AGB863

Robert_Sterling wrote:

"With an unsecured loan you are still required to keep to the terms & conditions of the loan. Failing to make the appropriate payments may lead to a county court judgement being made against you. Failing to fullfill the requirement of the CCJ may lead to a charging order being made against you. In this case the charging order ensures that in the event of a sale of the property the charge will be made known to concerned parties."

You do not have to get a CCJ against you to have a charge made on your property. In the terms and conditions of some non secured loans, it can be mentioned in a way that you do not know what the statement is, but effectively if you default on the loan the creditor can ask for an order to be put on the property. .

Bossyboots

That is not right AGB863. Regardless of what any paperwork might say to the contrary, you can only apply for a charging order when a debtor has defaulted on payment following a CCJ. In the way you describe it, it would be an unfair contract term in any event and even if it wasn't, it cannot override the law and that states you can only have a charging order as I have described.

Robert_Sterling_3

You may well be right but what you say is not consistent with what it says at the web site to which I provided a link.

Bossyboots

Robert_Sterling wrote:

You may well be right but what you say is not consistent with what it says at the web site to which I provided a link.

We posted at the same time, but the info in your link is correct and it is not possible for a financial institution to produce a contract that says differently.

It could be that AGB is talking about a simple charge or restriction rather than a charging order and if that is the case then they would not be able to make application to the court for a forced sale.

However the OP is talking about a charging order and now has the info required thanks to your link.