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secured loan and mortgage who gets what
shortie_250901
Posts: 1 Newbie
in Loans
i have a property with a secured loan what happens if i sell my property for less than i owe on my mortgage and loan?
0
Comments
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You will not be able to complete any sale unless the charges against the property - either mortgage or loan - are settled at time of sale.
Your only option would be to come clean with both the mortgagor and the loan company and see if they are prepared to release their charge without obtaining full settlement with an arrangement in place to pay any outstanding monies?0 -
The mortgage bank has 'first charge' so they would be first in line. The secured loan comes second and they would get what ever is left. The balance would become an 'unsecured loan' and you would have to agree how you would repay this with them.
As standupguy says though, the secured loan company could prevent you from selling potentially.
R.Smile
, it makes people wonder what you have been up to.0 -
just wondering who the loan is with and on what basis there settlement figure is based?
this can make a lot of difference.
also some second charge lenders can be very obstructive to people in your position.
good luck0
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