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Secured loan now unsecured

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taz08
taz08 Posts: 9 Forumite
Hi

I was wondering if anyone can help me. I had a secured loan on my property which i have now sold and the loan has had to become unsecured. The loan company said that we will not have to sign a new agreement it will state that is is still secured with a note on it stating that the property has been sold. How do i stand with the loan company in having to pay them if i cannot afford to with not having signed any new agreement.

Thanks

Comments

  • They will go ultimately for a CCJ against you.
    The loan agreement per se does not have to be varied if the lender does not want to - just tell us though how did you manage to get the lender to remove its charge against the property without you paying the debt back?

    Don't tell me first time poster etc etc.
  • taz08
    taz08 Posts: 9 Forumite
    Hi

    The house was valued at less then what i owed on the mortgage and the secured loan together. The house has been sold with a shortfall and as the loan could not be paid off either they had no choice but to make it unsecured.


    Thanks
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