Charging Order/House Sale Panic

Why_oh_why

barnaby-bear wrote: »

:eek:
so at least the buyers are aware [strike]of what is going on.[/strike] you are distressed sellers over a barrel and they can drop their offer....

Hmm hadn't thought of it that way. I was just concerned that 3 weeks through the paperwork and we might have to turn round and say we can't sell the house because a charging order has put in place.

Buccaneer

Just because Yorkshire Bank is asking for a charging order it doesn't mean that they are going to force the sale of your house immediately; they can apply to have the order enforced if you don't comply with the terms of the instalment arrangement.

Do Yorkshire Bank know that you have an outstanding mortgage plus a secured loan? Does the amount of the outstanding mortgage and the Paragon loan exceed the equity from the house sale? If it does then it is worth telling YB this info and that it is unlikely that they will benefit from applying for a charging order (it will save you the court costs as well!).

Go ahead with selling your house privately because in this case you will maintain control of your asset rather than handing it over to another organisation.

Whose debt is the YB one - your's or a partner's? Whose name is the house in? The debt can only be taken out of that person's part of the equity. This means that if a house is jointly owned then the credit card debt can only be taken out of any equity left in that partner's share and not in the whole of any equity - this is something to keep an eye on as YB can not make you pay for a partner's debt.