Oh No - Secured Loans

Reevesie76

I have just had an email back from the OR replying to my email and voluntary surrender of our house / mortgage and this was his reply:-

If you voluntarily surrender the property all the secured charges including the mortgage remain secured and only the shortfall following the sale of the property will be unsecured claims in the bankruptcies.

Oh my god, does that mean that we are still stuck with the secured loans, I thought they became unsecured and were included in the bankruptcy once the house had been repossessed. What on earth do we do now, we cant afford to repay those.

fermi

Don't panic. Your OR has just badly worded that, that's all.

The only debt left once the property is sold will be "the shortfall". By definition any other debt would be cleared from the sale. ANY left over would be part of "the shortfall" and so covered by the BR.

Thta is what they are trying (BADLY) to say.

gridlocked

Don't worry - you're just mis-reading what he said.

The secured loans along with the mortgage will be repaid once the property sells. Any shortfall from either the secured loans or the mortgage is then included in your bankruptcy.

Reevesie76

Oh my godness, thank you both so much, I was so worried by what he said, I am so glad its going to be included, phew!

Thanks again

the-muffin-man

You must remember not to sign a 'Deed of Acknowledgement' or any other papers your finance companies want you to sign in relation to secured loans and repossession. They try many tricks to get you to sign these documents and if you do then you are accepting liability for any shortfall. Other on here know the ins and out of this better than me.