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can i negotiate out of secured loans with a cash payment
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HI
I recently got made redundant and am considering selling my property as I am concerned about the long term issues of having no job and a mortgage ( benefit system seems to penalise those who have worked and paid tax and own) I have a property worth around £215k and i bought it for £180k so the profit margin is pretty low, made less by the fact that I fooishly took a 40k secured loan plus 10k insurance on the flat so would need to sell it for At least £230K.
Im in arrears on both Mortgage and Loan and am now on Job Seekers so am making significantly reduced payments. I heard during the recession that if you could get cash together that you could pay off loans at a greatly reduced rate ( i have already physically paid 14k off the loan in repayments) so am wandering if its possible to sell my property and offer a reduced rate to the loan company ( GE money) on the basis that some cash is better than none. - Iwas thinking of offering £10k. Is this a likely scenario., as the other option is to sell the flat and pay off as much as I can but that will leave me with a £15k shortfall and nothing to secure it against
Is there any help anyone can offer in terms of advice or experience
I recently got made redundant and am considering selling my property as I am concerned about the long term issues of having no job and a mortgage ( benefit system seems to penalise those who have worked and paid tax and own) I have a property worth around £215k and i bought it for £180k so the profit margin is pretty low, made less by the fact that I fooishly took a 40k secured loan plus 10k insurance on the flat so would need to sell it for At least £230K.
Im in arrears on both Mortgage and Loan and am now on Job Seekers so am making significantly reduced payments. I heard during the recession that if you could get cash together that you could pay off loans at a greatly reduced rate ( i have already physically paid 14k off the loan in repayments) so am wandering if its possible to sell my property and offer a reduced rate to the loan company ( GE money) on the basis that some cash is better than none. - Iwas thinking of offering £10k. Is this a likely scenario., as the other option is to sell the flat and pay off as much as I can but that will leave me with a £15k shortfall and nothing to secure it against
Is there any help anyone can offer in terms of advice or experience
0
Comments
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You better ask them for a settlement figure first! If you borrowed 40K, I think you will be very shocked at the figure they are going to tell you. Believe me when I say 10k is not going to scratch the tip of this very large ice-berg, 15K will still be a laughable figure to them.
Sorry and good luck, you are going to need it.
AMD
Forgot to add, if you took out ppi now would be a very good time to claim for mis-selling and claim this 10k back, as you will have been charged interest on this amount too. There are several links about this on this website and a step by step guide to use.
Here's another link regarding GE Money
https://forums.moneysavingexpert.com/discussion/2264843Debt Free!!!0 -
Sell up and cut your losses. As it's a secured loan there's no reason they would accept a reduced settlement figure.0
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