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mum may have to sell her house?
soph22
Posts: 10 Forumite
hi, nobody here may know the answer but im going to throw it out there. and i cant find a forum that completely fits it.
im writing this regarding my mum as im worried for her. not myself.
it started when my brother asked my mum to be a director of his company as a favour. he said all you need to do is sign it and you wont hear anything else about it. my mum being how she is, just agrees and hears no more. until she starts getting letters saying she owes thousands of pounds. it turns out his company was going under. he then creates this other company and tells her all will be fine just give the letters to him and he will sort it. so she does. sometime later she starts getting more letters. this time he says teh same thing, so she passes them on to him. until one time she recieves something which has her signature on buts he has never seen before in her life. now this was either my brother who forged her signature or someone else in the company. My brother eventually sorted all this out. however at some point during all this going on she was visiting him where he lives and while she was there he asked her to sign something so he could get a company car. she literally had 15 minutes to get to the train station to go home, so whilst there she admitted, i have no idea what i am signing so this better not get me into any trouble! she was acting as guarentore for this 34 grand car. my brother reassured her and said no no it will be fine. teh fact that he needed a guarentore in the first place should have told her something but she trusts him.
so recently she starts getting letters about this car saying she needs to pay over 20 grand as my brother has been ignoring payments and they finally took the car away (after finding it, he had been hiding it) he told her to do the usual, send it to him and he will sort it. but by now she has got wise and knows he will just ignore it. so she goes to CAB, who then advice her to pay to see a solicitor. her options were as follow
1 - ignore it, but they will put something on the house so that when they come to sell it they will get their money that way, all teh time adding interest.
2 - offer them a lump sum of her half of the house, say 15 grand and they should stop adding interest then
or 3 - offer to pay what you can afford each month but if they dont think it is enough they are allowed to decline it and do option 1.
my mum is in her 60s, not in the best health as it is and all this stress is causing her no good, she is in a right state all because of my stupid brother who took advantage of her good nature. she had previously said, perhaps she should sign over her half of the house to me and my other brother so they can take it, but didnt do it and now the solicitor said if she did that she could go to prison!?!?
she text my brother today and told him he owes her money for teh solicitor and that she is being held responsible. he hasnt gotten back to her. and he knows what is going on but hasnt contacted her (my uncle sees him regularly and has told him)
is there anythings he can do that hasnt been mentioned so that she wont lose her money on the house? i dont understand why my brother cant be held accountable and not her. i dont know if they cant find him but if she told them where he was then surely they should blame him not her. her argument is that he purposely has no assets that they can take. i dont know what to do to help her:(
im writing this regarding my mum as im worried for her. not myself.
it started when my brother asked my mum to be a director of his company as a favour. he said all you need to do is sign it and you wont hear anything else about it. my mum being how she is, just agrees and hears no more. until she starts getting letters saying she owes thousands of pounds. it turns out his company was going under. he then creates this other company and tells her all will be fine just give the letters to him and he will sort it. so she does. sometime later she starts getting more letters. this time he says teh same thing, so she passes them on to him. until one time she recieves something which has her signature on buts he has never seen before in her life. now this was either my brother who forged her signature or someone else in the company. My brother eventually sorted all this out. however at some point during all this going on she was visiting him where he lives and while she was there he asked her to sign something so he could get a company car. she literally had 15 minutes to get to the train station to go home, so whilst there she admitted, i have no idea what i am signing so this better not get me into any trouble! she was acting as guarentore for this 34 grand car. my brother reassured her and said no no it will be fine. teh fact that he needed a guarentore in the first place should have told her something but she trusts him.
so recently she starts getting letters about this car saying she needs to pay over 20 grand as my brother has been ignoring payments and they finally took the car away (after finding it, he had been hiding it) he told her to do the usual, send it to him and he will sort it. but by now she has got wise and knows he will just ignore it. so she goes to CAB, who then advice her to pay to see a solicitor. her options were as follow
1 - ignore it, but they will put something on the house so that when they come to sell it they will get their money that way, all teh time adding interest.
2 - offer them a lump sum of her half of the house, say 15 grand and they should stop adding interest then
or 3 - offer to pay what you can afford each month but if they dont think it is enough they are allowed to decline it and do option 1.
my mum is in her 60s, not in the best health as it is and all this stress is causing her no good, she is in a right state all because of my stupid brother who took advantage of her good nature. she had previously said, perhaps she should sign over her half of the house to me and my other brother so they can take it, but didnt do it and now the solicitor said if she did that she could go to prison!?!?
she text my brother today and told him he owes her money for teh solicitor and that she is being held responsible. he hasnt gotten back to her. and he knows what is going on but hasnt contacted her (my uncle sees him regularly and has told him)
is there anythings he can do that hasnt been mentioned so that she wont lose her money on the house? i dont understand why my brother cant be held accountable and not her. i dont know if they cant find him but if she told them where he was then surely they should blame him not her. her argument is that he purposely has no assets that they can take. i dont know what to do to help her:(
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Comments
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How can they put a lean on her house, if she never agreed to secure the loan against it in the first place?
She cannot be personally liable for debts against a limited company (kind of the point of limited liability), unless she signed guarantees.The greater danger, for most of us, lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark0 -
to be honest i dont know the full details and probably wouldnt undertsand them if i did, and im oretty sure she dosnt either. she recieved a ltter saying they could do thsi to her house. but i know she did sign to be a guarantor for the car, which if presumably why they have this ability. she had no idea what it would mean and trusted my bother.0
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to be honest i dont know the full details and probably wouldnt undertsand them if i did, and im oretty sure she dosnt either. she recieved a ltter saying they could do thsi to her house. but i know she did sign to be a guarantor for the car, which if presumably why they have this ability. she had no idea what it would mean and trusted my bother.
The financing is only secured against the car. They have repossessed the car, so have their asset back. They can only chase her for missed payments.
If they are threatening such things, they are talking out of the behinds. Is ths a debt collection agency, or the finance company?
I really can't believe a solicitor told her to do this.The greater danger, for most of us, lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark0 -
Something similar happened to my friend, about 20 years ago. His brother started a company, got his dad to sign for some loans/stuff (his dad had lived in the house forever and that's where he brought up the family and his wife had lived there and died there, so it was a whole of life memory bank). Brother blew all the company money (flash cars, always seen down town having a good time in expensive clothes), then the brother walked and left the father to pick up the tab - resulting in the family home being sold. His poor dad was an OAP.0
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Because they are in receipt of the full facts, and you are not?
The facts I am in receipt of, are what the OP has provided. If the solicitor is in possession of other facts, perhaps you could let us know what they are.The greater danger, for most of us, lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark0 -
well, there is an assumption that the only thing secured is the car. that may not be true. she may have guaranteed all sorts of things or had her signature forged to do so.
1. Is she prepared to shop him for fraud? If not, she could be held liable for all sorts
2. How easy will it be to get all the company accounts? If she is a director she is entitled. As well as a solicitor she needs an accountant. She needs to know the full picture.Debt free 4th April 2007.
New house. Bigger mortgage. MFWB after I have my buffer cash in place.0 -
this is what i thought was crazy, the car was leashold valued at 34 grand. they took it back and sold it for 22 grand. now they say they want this money due to the money it cost them to get the car back, the interest etc. he was supposed to be paying 600 a month for it, which my mum reckons he hadnt been paying any of. so this is why they claim she owes all this money.
the solicitor gave her those 3 options and says he really cant see any way of her getting out of it as she signed at a guarantor fo rthe car
edit - she stupidly didnt read what she was signing as she trusted my brother. but i guess if they are saying they could take money from the house then it must have been in there somewhere that they could do this. nobody forged her signature that one time but they did in the past. i just basically want to find out how i can get this turned back around so its my brothers problem and not my mums0 -
The facts I am in receipt of, are what the OP has provided. If the solicitor is in possession of other facts, perhaps you could let us know what they are.
I am not the solicitor, so how would I know the facts?
The OP has admitted that they do not know the full story,so nor do we. Yet you criticise the solicitor for giving advice based on all the of the facts. Go figure ...Gone ... or have I?0 -
You cannot have a liability secured against a property, without knowing about. If there is a first charge, for example, the lender of that charge has to agree. The land registry needs to involved and that will more than likely require a solicitor to do the conveyancing. Then there are the requirements for identification etc.well, there is an assumption that the only thing secured is the car. that may not be true. she may have guaranteed all sorts of things or had her signature forged to do so.The greater danger, for most of us, lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark0
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