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Need help loan succured on house
moneysaver12
Posts: 2,088 Forumite
My friend put his house on the market last year and someone put a offer in for it which he accepted, he had a £50.000 loan seccured on the house and didn't realise that this would be a problem, its his first time selling a house. He has recieved a letter from the soclitor saying that the house sale can't go ahead as there is £109.000 owing on the house, this is made up of
£30k left on the mortgage
£50k loan seccured on the house
£29k intrest
He is not living in the house and doesn't want to go back and live in the house, he was hoping to selll the house to pay off the mortgage and use the rest of the money to pay off some of the debt, now this can't happen. He doesn't know what to do now.
Also he wants to rent some where privately which will be the first time, what affect will this have on him renting privately.
Can anyone help please
£30k left on the mortgage
£50k loan seccured on the house
£29k intrest
He is not living in the house and doesn't want to go back and live in the house, he was hoping to selll the house to pay off the mortgage and use the rest of the money to pay off some of the debt, now this can't happen. He doesn't know what to do now.
Also he wants to rent some where privately which will be the first time, what affect will this have on him renting privately.
Can anyone help please
Married 09/09/09
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Comments
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Bump..............Married 09/09/090
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moneysaver12 wrote: »My friend put his house on the market last year and someone put a offer in for it which he accepted, he had a £50.000 loan seccured on the house and didn't realise that this would be a problem, its his first time selling a house. He has recieved a letter from the soclitor saying that the house sale can't go ahead as there is £109.000 owing on the house, this is made up of
£30.000 left on the mortgage
£50.000 loan seccured on the house
£29.000 intrest
He is not living in the house and doesn't want to go back and live in the house, he was hoping to selll the house to pay off the mortgage and use the rest of the money to pay off some of the debt, now this can't happen. He doesn't know what to do now.
Also he wants to rent some where privately which will be the first time, what affect will this have on him renting privately.
Can anyone help please
Can I just clarify.....is it £109k he has left to pay or £109?0 -
How much is the house up for sale at? Unless there is enough to pay off both the loan & the mortgage, he won't be able to sell the house.
The loan company & the mortgagtees both have a charge on the property, which in effect means the house doesn't actually belong to him untill he clears mortgage & loan if the value of the house is the less than the outstanding amounts. In such a case he doesn't have any equity in the property, other than negative equity.
When you take out a secured loan, you put your house up as security against the loan & he would have been warned about this when he took out the loan & also should have been given the warning that if the loan was not repaid under the terms stated, he could end up losing his home.
He can rent the house out, providing he gets consent to let from his lender & use the rent money to rent himself another property.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
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How much is the house up for sale at? Unless there is enough to pay off both the loan & the mortgage, he won't be able to sell the house.
The loan company & the mortgagtees both have a charge on the property, which in effect means the house doesn't actually belong to him untill he clears mortgage & loan if the value of the house is the less than the outstanding amounts. In such a case he doesn't have any equity in the property, other than negative equity.
When you take out a secured loan, you put your house up as security against the loan & he would have been warned about this when he took out the loan & also should have been given the warning that if the loan was not repaid under the terms stated, he could end up losing his home.
He can rent the house out, providing he gets consent to let from his lender & use the rent money to rent himself another property.
Thankyou for your help, i will tell him this. The house was going to be sold for 58k which is much less than the owes. I know that he doesnt' want to rent it out, he just wants rid of it now and to try and clear the money he owes. He can't afford to pay the money back each month that the bank want for the loan and has stopped paying it.Married 09/09/090 -
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House £58k
Loans secured against it £109k
Negative equity £51k
Bankruptcy?0 -
He needs to take some experienced money advice as what he doesn't need to happen is that the house is repossessed & sold for less than the amounts outstanding, as obviously would be the case, & he pursued for the remaining debt, racking up late charges & such for years to come.
Do urge him to seek experienced advice asap for his own sake. If he doesn't know where to go then a call to his local council should furnish him with details of any organsiations in his area dealing with such matters.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
SouthCoast wrote: »House £58k
Loans secured against it £109k
Negative equity £51k
Bankruptcy?
Not sure..............Married 09/09/090
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