Charge on Property

whitefuschia

If I have a mortgage with a company (let's say Barclays for the sake of argument) and I also owe the same company money on a credit card and loan, can they put a charge on my property to recoup their money?

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windswept

Any credit card or loan company can apply for a charging order - they are currently applying for more and more - so much for "unsecured" debt.:rolleyes:

peachyprice

They have to apply for a CCJ first, then get a 'payment forthwith' judgement against you, then you have to default, before they can get a charging order at the moment. Next year things are changing where they can get judgement for a CO immediatley, missing out the steps where you get a chance to pay.

Useless_with_wonga

Hi Peachy,
That's worrying. Do they still need the CCJ first?????? Can you still defend it by arguing it favours one creditor over another? Will you be able to continue paying by way of a DMP?
Seems unfair i never signed up to this practice. I know i owe the money and I'm making every effort to pay it back ASAP.
Can i change the terms of the original contract and not pay........ No i didn't think so:rolleyes:

Deep_In_Debt

Hi Wonga

It is worrying. There is a something coming out whereby they could just go for the kill without a CCJ.

I'm also hoping as you are that you can defend it for the same reasons. However, in this current climate I think that many creditors will do it. It seems to favour the creditor and give the debtor no opportunity to offer ways of paying the debt back.

It worries me as I took the debt on the understanding that it was unsecured. If I wanted secured, I would have done that route and paid less interest. My creditors have been pretty quiet and not threatened me with any legal action yet. Am wondering if they are waiting to see if this law comes into force and then just hit me with it.

Useless_with_wonga

Oh well no use in worrying i suppose. Same as you all mine are quiet at the moment not a peep out of them just plodding along on my DMP:o
I was thinking of increasing my payments to get shut quicker but having read this think i will "Save" the little bit extra elsewhere.
As things are i have about 7K equity and i'd gladly give them it in exchange for them writing off the other 41K Do you think that's how it works?;)
In all seriousness i am making massive efforts to get this paid off but the reality is i can only do it with my creditors cooperation.
I will see how it goes but if all the silliness starts up again then i think i'll be seriously considering BR you can only swim upstream for so long.

SouthCoast

If your mortgage is with a Bank, check out "All Monies Charge".

Deep_In_Debt

Useless_with_wonga wrote: »

Oh well no use in worrying i suppose. Same as you all mine are quiet at the moment not a peep out of them just plodding along on my DMP:o
I was thinking of increasing my payments to get shut quicker but having read this think i will "Save" the little bit extra elsewhere.
As things are i have about 7K equity and i'd gladly give them it in exchange for them writing off the other 41K Do you think that's how it works?;)
In all seriousness i am making massive efforts to get this paid off but the reality is i can only do it with my creditors cooperation.
I will see how it goes but if all the silliness starts up again then i think i'll be seriously considering BR you can only swim upstream for so long.

Would certainly be nice to think that they would write off 41k of debts for 7k! I have 6 creditors and if they all went for CO's not sure how much they would get back as I have about 10k equity and 20k in debts. I guess they feel that having a security makes them feel better.

I am similar to you. If they start messing me around then I will just mess them around. I've tried to pay them back and if they can't accept it, then they may get nothing instead - their loss. Sometimes, I'm not sure of their way of thinking.

milliejo

SouthCoast is right.if the charge is with a bank it could be an all monies due charge which covers all money you owe the bank however it is owed so it would cover the loan and may cover the credit card debts.if you have a copy of the charge you need to read it carefully to check if it relates solely to your mortgage or is an all monies due

peachyprice

Useless_with_wonga wrote: »

As things are i have about 7K equity and i'd gladly give them it in exchange for them writing off the other 41K Do you think that's how it works?;)

The CO will remain on the property until there is enough equity for them to call it in and force you to sell, or until you sell the house yourself. If you were to sell and there was not enough equity to pay them they could stop the sale.

Useless_with_wonga

I understand the theory behind a CO but i was unaware that they could force a sale. I thought the order just stayed on the house until you sold and then after the first charge namely the mortgage company had their money any left over went to the second charge and not in my pocket.
As i say though i only have 7K equity and that's decreasing by the day so i sort of figure what the hell it'll take forever to amass enough equity to repay my creditors in full.
Hopefully by the time i have anywhere near enough equity i shall have paid off most of what i owe.
What are the facts about this forced sale business please because despite reasearching CO's on the net i can find no mention of it.