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Secured loan sold to very ill mother. Do I have grounds to challenge agreement?
Turtleclaw
Posts: 1 Newbie
in Loans
Hi everyone.
This is my first post on any forum. I hope that it is in the correct place!
I have a query about the validity of a secured loan agreement which my mother signed up for approximately 3 months before her death. She had been suffering from cancer for several years, and was in some considerable debt, the details of which I don't know as she never discussed these things with me. Unbeknown to me, she applied for a secured loan for £33,000, which appeared to be an attempt to consolidate her other debts. I am the executor of her estate, and this debt became apparent during probate. The house which it is secured against is her only asset. Since her death, around £9000 interest has accrued on this loan while I have dealt with probate and trying to sell her house. Something that I have been thinking about lately, since reading other posts on this forum, is whether the loan was sold correctly to start with. Is it ethical for them to sell a long-term secured loan to a gravely ill person? Her only income was a pension and the allowances due to her because of her illness, and repayments were around £330 a month. It seems to me that there was very little prospect of her being able to pay the loan to its completion due to her illness, and if she had somehow recovered she would have lost the bulk of the income which enabled her to take out the loan in the first place, and so again been unable to pay it back. So either way, the loan company would get the house. This seems to me to be a case of acting in bad faith - the loan had no chance of going to its full term. Also, my mother was of course very vulnerable at the time of the sale. Shouldn't they have taken this into account? I am not trying to avoid paying legitimate debts - I am looking at whether I can get them to either stop or reduce the interest, and also stop the pressure which they are now starting to apply on me to sell the house quickly at any price - default notices, phone calls etc. I apologise for the length of this first post, and would appreciate any advice. Thanks.
This is my first post on any forum. I hope that it is in the correct place!
I have a query about the validity of a secured loan agreement which my mother signed up for approximately 3 months before her death. She had been suffering from cancer for several years, and was in some considerable debt, the details of which I don't know as she never discussed these things with me. Unbeknown to me, she applied for a secured loan for £33,000, which appeared to be an attempt to consolidate her other debts. I am the executor of her estate, and this debt became apparent during probate. The house which it is secured against is her only asset. Since her death, around £9000 interest has accrued on this loan while I have dealt with probate and trying to sell her house. Something that I have been thinking about lately, since reading other posts on this forum, is whether the loan was sold correctly to start with. Is it ethical for them to sell a long-term secured loan to a gravely ill person? Her only income was a pension and the allowances due to her because of her illness, and repayments were around £330 a month. It seems to me that there was very little prospect of her being able to pay the loan to its completion due to her illness, and if she had somehow recovered she would have lost the bulk of the income which enabled her to take out the loan in the first place, and so again been unable to pay it back. So either way, the loan company would get the house. This seems to me to be a case of acting in bad faith - the loan had no chance of going to its full term. Also, my mother was of course very vulnerable at the time of the sale. Shouldn't they have taken this into account? I am not trying to avoid paying legitimate debts - I am looking at whether I can get them to either stop or reduce the interest, and also stop the pressure which they are now starting to apply on me to sell the house quickly at any price - default notices, phone calls etc. I apologise for the length of this first post, and would appreciate any advice. Thanks.
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Comments
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I am first to say to people ,,you borrowed it you pay it back...but i find this one quite unsettling..did the company know your mother was ill? Was it done face to face? I would fight this one if i was you...someone will be along who knows the law on this soon.
who is the loan with and for how long..?It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
It would have made little difference (except probably a lower rate of interest) if it was used to consolidate others debts. Any unsecured debt would have had to have been repaid from here estate anyway.0
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