How can I sell my house if I have a second charge on it???

MarkyMark75

Can anyone please help....

I need to sell my house as I am falling into more and more debt and am now struggling to make the repayments due to a large decrease in income. I have a Northern Rock Together mortgage.... which is a mortgage and unsecured loan in one.... but I am in negative equity. I've spoken to Northern Rock, who have been quite helpful and they have let me make reduced payments for the last few months but this is not a long term option. I have explained what I would like to do. I have stated that I could sell my house and pay back nearly all the money I owe on my mortgage but would have to keep the unsecured loan and make arrangements with them to pay the remaining balance. They seem ok with this but the problem I have is that I have a secured loan with a company called Black horse finance.

I have spoken to this company and explained the situation and that to avoid me getting further and further into debt I need them to release the charge and change my loan to an unsecured loan and I will have no problem repaying them. They have said they wont do this and won't let me sell.

I have then spoken again to my mortgage company and explained what Blackhorse have said and they said that I cant sell.

I am trying to do all I can to do the right thing but neither company seems willing to help, The end result will be, not been able to pay my mortgage or my loan and my home been repossesd..... which will not really bother me because I just can't afford it anymore and i'd be better off without it.

chambta

See it from their point of view. Why would Black Horse agree to it?

I suggest you get help from a debt charity.

gemini24

I have friends in a similar position but they plan to sell and move to a smaller property they currently rent out. They won't be able to pay off the second charge but that particular lender is letting them transfer the charge to the other property. The move will save them almost £1k a month.

Do you have an option of living very cheaply elsewhere and renting your place out (even if the rent didn't fully cover your outgoings)? If you could do this, it might give you a bit of breathing space until property prices increase.

MarkyMark75

Thanks for your reply

Yes.... I am planning to move in with my girlfriend and we want to rent a place together which would save us both a substantial ammount of money.

I have thought about renting my property out but think that in the long run i'd hardly be better off.

MarkyMark75

Blackhorse would be better off because if I let my mortgage company take my home and sell it there will be no funds to pay them... so the debt I owe them will then HAVE to become an unsecured debt as i'll have nothing to secure it on.

happybroker

Have you spoken to any of the agencies that exist to help with this sort of thing? Try Citizens Advice, Consumer Credit Counselling Service, Christians Against Poverty (who could do with a re brand frankly as I have spoken to people who found them the best of the 3! lol).

This may sound like something you really don't want to do but you've nothing to lose and may be really glad you did.

Radiantsoul

MarkyMark75 wrote: »

Blackhorse would be better off because if I let my mortgage company take my home and sell it there will be no funds to pay them... so the debt I owe them will then HAVE to become an unsecured debt as i'll have nothing to secure it on.

Agreed, but if you are currently paying them at the moment they are probably happy with the status quo.

I think you need to get someone to negotiate on your behalf either a solicitor or a debt advise charity. I believe that you can go to court and force a sale. The case is Halifax v Barrett, although it dates back a while and so I am not sure if it is current.

MarkyMark75

Thank you all for your replies and advice.

I have spoken to the National debtline tonight and they have said that I should first put into writing to Blackhorse that my house is likely to be re-posessed as I am falling behind with my mortgage payments and that as I am in negative equity there will not be sufficent funds for them to get their money back and that it would also be in their best intrest to let me sell.

If this does not work they recommend that I get a solicitors advise and maybe go to court to try and force a sale...

Or finally...

just hand the keys back to Northern Rock.

gemini24

MarkeyMark, I understand you feeling you would simply like to hand back the keys but please exhaust all other avenues before doing this. The lenders will find you and pursue you for the debt anyway which will likely grow alarmingly as they will add charges etc.

You probably feel you don't care if you never own a house again at the moment but over time your circumstances could change. You may again want a home of your own rather than living in rented accommodation, paying someone else's mortgage and not knowing if a landlord will serve notice at any time after the initial 4 months of your agreement.

How much is your house worth compared to what you owe on it and how bouyant is the rental market in your area? I would seriously consider the rental route if the figures stack up, so long as you do not commit to a high rental elsewhere as you may face paying rent and the mortgage during any void periods.

Also consider seeking debt advice as suggested by another poster. I have it good authority the secured second charge lenders do not want to repossess anyone in negative equity as they know they stand to lose out. I'm sure with a bit of CAB help, they would reconsider the error of their ways and accept an affordable payment from you. They would rather have something than nothing.

stingray2

If you read my post history you'll notice I had a similar problem- not me but the seller of my house, they were in negative equity and had a charge from black horse. The mortgage co was accord and they too wouldn't agree without the charge being paid of. It took us 4 months but they did agree to turn any outstanding debt into an unsecured loan. This was after a lot of negotiations and a full check if the couples finances. So it has happened I just think it will depend on circumstance. They also had to pay a hefty sum to solicitors to sort thier paper work. Hope this helps to share..... There may be a chance xxx

MarkyMark75

Thanks for your messages..... At least this gives me some hope and some sort of direction to go in.

I'll see if Blackhorse will negotiate and if not then i'll speak to a solicitor.