mortgage shortfall

confusedlittlebunny

Hi All,

I will keep this simple. my house is about to be repossessed (the one i rent out) and suspect a shortfall of approx £60k. I understand this is now classed as a "non-priority debt".

My question is, can the mortgage company place a charge over my house i live in and when sold pay them their money?

or to keep them at bay from putting a charge can i agree a payment plan over say 10 years to pay this off?

Many thanks.

ViolaLass

Is the house about to be repossessed because you haven't been paying the mortgage? Is the £60k the amount you owe or are you in negative equity?

Annisele

The OP's first and second threads give a little more detail.

I don't know the answer to his question, but I thought it might help to give other peeps pointers.

opinions4u

If you have an unsecured debt a lender can apply for a charging order against any property that you own.

So yes, they could.

If you show a commitment to clearing the debt they may choose not to.

I'd suggest you speak with CAB, Shelter or one of the other debt charities to ensure that you get specific advice and support to make the most of your particular circumstances.

Thrugelmir

confusedlittlebunny wrote: »

My question is, can the mortgage company place a charge over my house i live in and when sold pay them their money?

Yes. In light of the amount you owe more than likely.

confusedlittlebunny

I owe them approx £12k in arrears and i suspect about £60k in negative equity.........can they apply for a charging order before the repossession has taken place and all the final figures are in order?

silvercar

Putting a charging order on the property would prevent it being sold without the charging order paid off. Without them knowing the exact amount this would take I doubt that they could do it.

What are you hoping to do, sell house 2 quickly before the repo is sold?

house 2 being jointly owned muddies the water, I don't know if they can grab your joint owner's share of the equity for your debt.

confusedlittlebunny

yes indeed, i am hoping to sell it as i have approx £30k equity and i owe family and friends approx £21k (as they have helped me with my mortgage the last 8 months i have been ill) and other debts....then when i have dig myself out of a whole i can go back to work and "work off" the debt i owe on credit cards and shortfall on mortgage once the figures are finalised....