secured loan question

nev32

hi all. just a quick question regarding secured loan on our house.
i have been advised that we are still liable for loan (of course we are) but they say that being br does not mean nothing with them. they can & will recver the coast/loan. we have given keys back to mortgage company & they have since put house up for sale with a local estate agent of which is up for sale at £159000 which is £22000 less than what we paid for it 2 years ago. hence reason for giving up house.
they say that we will get a date for court to recover the loan on the property & that br does not come into this.

is this correct as im pooping it now. i will say that he was very pushy but i expected that, but to sat that they will recover the loan even if we ar br still worries me.

any advice welcome please & ask questions if you like to help me.:eek:

TDMum

I think he is talking out of a hole in his rear. Any debt accrued before BR will be included in your BR. Probably just the usual scare tactics these monkeys like to play. Try not to worry, although easier said than done. I'm sure someone who knows more about the nitty gritty legal stuff will be able to let you know the exact score.

debtinfo

What he means but is intentionaly making sound worse. Is that they can recover the money from the sale proceeds of the property. Any secured creditor has first dibs on the equity in the property. any shortfall will go into the bankruptcy.

nev32

so the nice chap really was being an a*****e & trying all the tricks in thee book to scare us. i was close to really mouthing off but i kept my cool.
so the only way they can recover the costs/loan is through the mortgage company when the house sells whether through estate agents or auction.

nev32

just a bump to see if any more for any more

debt_doctor

I agree with debtinfo but would like to add that even if your house isnt sold till after your BR discharge, you will still not be responsible for any shortfall.

DD