Charge on Property

peachyprice

If you google 'charging order forced sale' you'll find lots of references to it.

Useless_with_wonga

Thank's I looked it up. Appears that any change in Law is on hold for the time being due to the current situation no mention of if or when it might be implemented.
Also appears that although a forced sale is possible it is very very rare that creditors will take this course of action as it costs them a fortune and if they are getting paid via IVA or DMP it's no major drama.
They may however go for a CO for the security aspect but seem to feel little need to force a sale. There are so many hoops to jump through to get to that stage and it is very unlikely any judge would issue an order for sale for unsecured borrowing where the debtor is making payment.
The judge may grant a CO but i say again he is most unlikely to kick you out on the street espescially so if the sale will not realise enough to cover the unsecured borrowing.(That will be just about everyone then:o )
As someone else said i thought my Borrowing was UNSECURED and to my mind that's exactly what it should be with NO option for creditors to secure it after the event.
If they were unhappy with the risk then they should have made the loan a secured one in the first instance but then again they would not have made so much money in interest with secured borrowing:mad:
They took the risk and loaded the loan/credit card to reflect that risk seems unfair that they can have it always.
As i say i accept that i owe what i owe and i will pay it however long that might take.

JoeHel

I am about to enter a DMP for £44k of unsecured debt and I'm so glad I don't own a house right now!!!

My only experience re charging orders is that we are currently getting one put on the house of a person who owes my OH about £23k. He has only just been discharged from bankruptcy so we know he doesn't have any other creditors. We have been told that if he doesn't pay us (either by monthly instalments or a lump sum) then we have 12 years in which to enforce a sale of his property. Plenty of time for house prices to rise.

Useless_with_wonga

Quite right too IF he doesn't pay. What i'm trying to say is that it all sounds very scarey and i have to say that making carte blanc statements re CO's does not help it just causes folks more stress and worry.
Sure they can take your house and a charging order is the first step toward that BUT they are unlikely to do so if you are paying and a judge is even less likely to grant an order of sale. They just want security on the Debt namely a legal procedure that Secures what they leant to you initially on an Unsecured basis which kind of makes a farce out of the term unsecured doesn't it?
If i had enough equity in my house don't they think i'd have explored that avenue? If this were the case then i'd happily sell my house to realise the equity and pay them off. I would then move into rented and begone credit forever.......If only.
The thing is the banks etc were happy to roll with the good times now its all gone boobies skywards they sort assistance from the Government fair enough but in my opinion they need to remember that when dealing with consumer debt and show a level of understanding and assistance to their (Previous) customers who they were happy to loan more and more money knowing it was unsustainable but assuring said customers all would be OK whilst they took massive bonuses for selling loans etc on the pretence the loans they sold you were the answer to your financial woes.........Sorry rant over.

peachyprice

Obviously if you're paying the debts off the charging order won't be enforced. But some people do not realise this, they think it will sit there forever and a day with no consequences if they don't start paying.

And yes, at the moment a forced sale is quite rare, but you can bet your bottom dollar that when we come out of the other side of this and there are millions of people with CO's they'll be called in once house prices start to rise again.

skintandscared_2

Apologies - I meant to say that too - if you are making regular payments on a debt then I doubt that a charging order would be enforced (and it may be that the judge would refuse to allow it to be attached in the first place if the creditor is just being plain greedy).

My point (badly made, I think) was that this person has made no attempt to make any payment at all and that is why the charging order is being sought.

Useless_with_wonga

Ok that's a fair point and to be right you would need your bumps feeling if you thought a CO meant you didn't have to pay. In my circumstances i can't afford the contractual payments but i can pay a decent amount to my creditors on a monthly pro rata basis via my DMP.

peachyprice

Ah, but there are unscrupulous bank's solicitors out there who will lead you to beleive you don't have to make regular payments then bam, they slap you with a summons for a forced sale hearing.:eek:

loosingmoney

just reading this and i have a chargin order being placed on my home from northumbrian water. they went for a ccj first then applied for the charging order after refusing my monthly offer. will this affect my credit any more than it already has? i dont understand why they would rather see it on the end of my mortgage than amounts going to them every month?

also if i paid say half of it off before the court date in december what do you think my chances would be of it being over turned and me being able to pay monthly installments?

sorry if im in the wrong section/hijacking this is my first post. thanks

peachyprice

Have you received notice of a hearing for an interim charging order or is the date in December to make it final?

You can appeal to the court and paying a lump sum would go in your favour as would demontrating that you could then make regular monthly payments. The judge can give you extra time before making it final if he feels you are in a position to pay the debt off.