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Secured Loan Company - Being unreasonable?

A neighbour has approched us to purchase a small section of our garden, it is about 10ft x 10ft, and is a small strip that you would presume is not ours as we have left it derelict for 20 years, but it is on our deeds, and we are the legal owners.

Just over a year ago, i lost my job, and we got into debt, which included mortgage and a secured loan being behind on payments.

We have been offered £5000 for this small area by our neighbour and this would allow us to pay off any arrears, on loans, and utility bills etc.

So we have agreed a price, neighbours will meet solicitors costs etc. We have paid a surveyor to value the house and garden, to see if any value will be lost if the sale goes through, his report stated that NO value will be lost.

Mortgage company agreed to the sale, but the secured loan company (2nd charge) have said no, and de-railed the sale. We are £600 in arrears with them, and have offered the £600 plus one months payment in advance from now on but they have still refused. They have stated that if sell, the want the arrears + every other penny left, i.e £5000 to be paid off the loan balalce (£40,000).



any advice please :confused:

G

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    They are quite within their rights.

    Why not agree to reduce the loan balance anyway - it should save you interest (check that it will though!)?
  • It may seem a good idea, but the plan was to get the electric (£800) Gas (£645) and Council Tax bailiffs(£1245) all off our backs :eek:

    G
  • Dan_1976
    Dan_1976 Posts: 943 Forumite
    This is a tough one but they have to protect their own interests. Its the way it is at the mo. Will they accept a little less? Meet them half way?
    "Banking establishments are more dangerous than standing armies." Thomas Jefferson
    "How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen

    Debt Apr 2010 £0
  • naijapower
    naijapower Posts: 1,393 Forumite
    You need to negotiate with them to see reason. Thats the only way forward.
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