Warning-Your Home May Be at Risk if You Fail to Pay Even On Un-Secured Debts

gilligansyle

there was a big debate about this a while ago on CAG and lots of people could not understand what the issues were.
find it really scary that those who have struggled to keep a roof, have steered clear of secured loans, unlike some of us, and are managing to make some repayments will now find themselves in a situation that seems a bit daft. In my own case, there is little or no equity in the house at the moment. If I hang on in there for a while, manage to keep paying the mortgage and the secured loan, and the housing market picks up again so there is equity in the property, there is no point downsizing as the charging order will take whats left?

A DCA has already been threatening me with a charging order before even getting me to court. They have so far rejected the offer from CCCS, so this may well be a route they go down.

Ames

I've just signed, although as I'm highly unlikely ever to own my own home it doesn't affect me directly.

I doubt it'll do any good though, remember the petrol prices one that got into the millions of signatures? Nothing came of that. And I've been involved in more recent ones about benefits that have got nowhere.

buxtonrabbitgreen

I have signed too. My debts are not huge, but if I lost my job I would not be able to pay them. this is scary stuff especially as I finish paying for my house next year. The thought of having it taken away for credit card bills makes me feel sick. Will pay back everything as fast as possible, which I am already doing anyway. Thanks for bringing this to my attention.

Kudox

I have signed the petition too, I'm really worried about this. We have worked really hard doing our house up and the thought it could be taken away for unsecured debt does'nt bare thinking about.
I am trying my best to do the right thing and pay off the debt and not trying to get out of it and its a sickener to think that the law could be changed in this way.

maz1964

buxtonrabbitgreen wrote: »

I have signed too. My debts are not huge, but if I lost my job I would not be able to pay them. this is scary stuff especially as I finish paying for my house next year. The thought of having it taken away for credit card bills makes me feel sick. Will pay back everything as fast as possible, which I am already doing anyway. Thanks for bringing this to my attention.

Thank you and pls spread the word around and give out the petition address to your friends, family, and everyone you think would appreciate also knowing about it,

a lot of us have contacted our MP;s about this and i do know a couple of people have got contacts with a couple of the national papers, maybe they may run a cover story for us and thus we can get the petition signed up even more

take care, i understand what you say about your house, its totally sickening#

getting debt free is really fab and i wish you best of luck

ciao for now laters maz:T

kpwll

The thought is horrifying as I have recently started a DMP and had a sigh of relief, now it's a gulp followed by OMG!!! Have signed the petition.

Kudox

Not sure what a CO actually means, is it that they can force you to sell your property and pay the debts out of the proceeds or that they can take your house off you and you are left with nothing?

esbo

Kudox wrote: »

Not sure what a CO actually means, is it that they can force you to sell your property and pay the debts out of the proceeds or that they can take your house off you and you are left with nothing?

As I understand it, it is a way of making an unsecured debt an secured debt, or altering a contract after it has been written, it is what I would call legalised fraud.

Rabbit-in-headlights

Latest count 231, please sign up at

http://petitions.number10.gov.uk/chargingorders/

ZTD

Hmm...looks like the law of Unintended Consequences - "Whatever actions a government takes to resolve a crisis, make the crisis worse."

The Government obviously wants to help creditors, but it's going to kill the mortgage providers. I think the only reason they're not squealing like pigs is that they haven't thought it through.

An example: DCA buys a £1000 for 10p in the pound. They go for the forced sell option and expenses knock their total costs to £500.

If the house sells, they'll get £1500 back. If it doesn't sell for more than the mortgage they could end up getting nothing back. After all equity is nothing more than a guess - there is no guarantee.

But they can go into this process knowing that 2 out of 3 attempts could fail because of lack of equity and they'd still break even. This is going to encourage them to take on very marginal cases. So even people who think they have no equity could be affected. Equity is, after all, a matter of opinion - and these people are chancers.

However, do you think that the mortgage providers could survive with two out of three mortgages failing to recoup the money that was outstanding? I don't.

Especially considering from their point of view that these were taken out as prime mortgages, and are being paid (i.e. are 'performing')

Even worse is if this becomes a statistically significant occurrence, then the holders of the Mortgage Backed Securities would have to lower their value. Hence lowering their asset value. Hence making their survival less likely.

I would have thought increasing the survival rate of banks would have been a better way to go. Obviously I was mistaken.

Don't know who thought this one up, but they just don't know what they are doing.

It's grossly stupid.