credit card company wants to sell my home

MortgageMamma

Who is your existing lender? May not have to remortgage completely, it is sometimes possible to take a further advance - which is a seperate loan to the mortgage, with your current lender, at a different rate and tied or not tied in for a different period. They are quite easy to arrange but I would still recommend you take professional advice - remember, however well meaning most of the people on this forum will not be qualified to give such advice, and if you act on their suggestions you could take the wrong path. Have things investigated by a whole of market broker to see if this is doable.

MM

hsgamboy

hi mortgagemama,

My mortgage lender is halifax bank

You mentioned that i could take an advance on my mortgage for the debt. Will this advance be a secured loan?

Can you also tell me when I remortgage in May 07 and want to increase my stake to 25% or 50% will Halifax do a credit search because if they do, they would see the ccj on my file.

Since the CC company has registered the debt as a ccj, my file is already damage anyway. So I don't see why I have to borrow more just to pay them off? I will be offering them £20-£30 until I can afford to make more repayments.

Mike Saint Helens an Ex- Credit Analyst with have years and years of experience in the banking industry, Mostly CC's. He had been a Senior Underwriter had experiences in severe financial difficulty. Gave me this useful advice;


Hiya.... The only advice I can give and its personal rather than professional is ignore them, dont open them and return to sender, theyll stop eventually. Just make sure there is nothing on youir own credit file relating to this and you will be fine.

I think Mike advice is a very good one, so I will offer them the £20-£30 per month with a promise to increase the repayment in 2years time.

mystic_trev

hsgamboy wrote:

Mike Saint Helens an Ex- Credit Analyst with have years and years of experience in the banking industry, Mostly CC's. He had been a Senior Underwriter had experiences in severe financial difficulty. Gave me this useful advice;


Hiya.... The only advice I can give and its personal rather than professional is ignore them, dont open them and return to sender, theyll stop eventually. Just make sure there is nothing on youir own credit file relating to this and you will be fine.

I think Mike advice is a very good one, so I will offer them the £20-£30 per month with a promise to increase the repayment in 2years time.

Wrong!You've got a Court Judgement against you so It'll be on your Credit file. You can try your "offer" but I doubt it'll be accepted. Amex have definately got the upper hand and it looks like you've really !!!!ed them off - pity you couldn't have negotiated earlier. Try posting on the DFW board, you'll get better advice on there than from Saint!

herbiesjp

hsgamboy wrote:

Mike Saint Helens an Ex- Credit Analyst with have years and years of experience in the banking industry, Mostly CC's. He had been a Senior Underwriter had experiences in severe financial difficulty. Gave me this useful advice;


Hiya.... The only advice I can give and its personal rather than professional is ignore them, dont open them and return to sender, theyll stop eventually. Just make sure there is nothing on youir own credit file relating to this and you will be fine.

I think Mike advice is a very good one, so I will offer them the £20-£30 per month with a promise to increase the repayment in 2years time.

Ignore your debts? Ignore the fact they want an interest in your property?

I really don't see how ignoring any of this will help you actually solve the problem - if you were going to ignore them when what is the point of posting on here for advice? Doesn't make sense


Good luck with whatever you do.

silvercar

if they put a charge on your property that is for the amount currently outstanding. They may charge you interest between now and when the property is sold, but that interest is not secured on your property AFAIK.

Should you increase your mortgage to pay this amount off, you will be securing a long term loan on the property, fall behind with your payments and the mortgage company could try and repossess your house.

What looks the cheaper and easier option in the short term could end up costing you your home.

I'm not saying don't do it, just be aware of the associated risks. I know too many people who view their house equity as an extra income stream, and suffer the consequences.

hsgamboy

Guys/ladies,

I am not going to ignore this debt like I did before the CCJ and the CC wanting to register against my property. Hence why I seek advice on this board. I just wanted to see what my options where before I take the next step. Thanks for everyone whose replies where positive even if they weren't what I was hoping to hear.

This will be my one and only default (CCJ) and I will settle this debt to my best ability whilst ensuring that my family don't suffer in doing so. I hate credit anyway and from now on I am going to be debt free apart from my morgage (I sincerly hate all these financial institutions deciding how one leads there lives)

I would really like to own an extra 25 or even 50% when my deal expires in May 07. Should this not be possible, then tha't not the end of the world, The extra money I would have paid to my mortgage provider will just go towards settling the debt and my personal savings. Aslo repay my 50% mortgage earlier - All wouldn't be lost as at least I will have half a house rather than none:cool: :cool:

jamesd

Come April you're going to be thoroughly screwed with being forced to stay on SVR or switch to a sub-prime mortgage for those with recent CCJs, at at least 1% above normal mortgage interest rates and needing a maximum LTV of 75%. With a very recent CCJ you're a lousy mortgage prospect. What this means is that your mortgage payments are going to rise by 45-90 a month if you carry on as you're currently planning.

You should be getting your mortgage lender to offer a further advance to clear the debt, then telling Amex that you'll clear the debt with a mortgage advance subject to them removing the CCJ and showing the account as settled. Work really, really hard at getting them to remove the CCJ, even offering them an extra 500 for the inconvenience and unnecessary work if that helps. But you can't afford to waste any time in getting this done - it needs to be sorted out at least a couple of months before April if at all possible, so it's not on your file when you remortgage.

If your mortgage lender won't do it, get another loan and clear it, even if it means a loan at 30% for 10 years to get a repayment level you can handle. You can repay it with an early repayment later on when you can afford that, like in April when you remortgage, which will save you more money than keeping the loan.

If you get the loan and Amex agrees, you my just be able to avoid paying a lot of extra mortgage interest over the next few years.

You can't just wait until April to clear it and you can't wait for a couple of years, because the increased mortgage interest rates are going to hurt a lot if you do that. Well, you can, if you don't mind shooting yourself in the foot.

The comment from Mike Saint Helens is fine for those who have no way to pay and who already have a wrecked credit record and can't avoid paying higher mortgage interest rates for years. This does not apply to you and following that advice will leave you worse off by hundreds to thousands of pounds a year in extra mortgage interest, because it'll cost you your ability to get a prime rate mortgage.

If you have any doubts at all about why everyone here is telling you to clear it, talk to some local mortgage brokers, tell them about the situation and ask them what rates you're going to get in April with and then without the CCJ. Don't expect to like what they tell you.

hsgamboy

WoW! Jamesd

You've been a great help mate, cheers for the advice. It's amazing how one mishap can lead to a life in imprisonment - financial-wise.

Thanks a lot. I will give your advice a lot of thought

jamesd

Yes, that's why the others were so vehement - it was obvious to them what was going to happen but they didn't quite explain it well enough.

On to more CJ options.

Is this a "default judgment"? If yes, see how to get a default judgment set aside and if you qualify, do that, so it won't go on your record immediately. This buys you some time but costs you 60. In this case also tell both the solicitor and Amex that you're doing this and that it's just to buy you time so the CCJ doesn't end up on your credit record while you get the money for them, so they shouldn't be worried. Ask them to take their time with a court date so you can avoid wasting everyone's time and money by paying before it gets to that stage again. They may not believe you, but communication is good, so keep them in the picture as you work on things. Here's the key benefit of this, if you meet the requirements:

"If the judgment is set aside by the court, this means that the proceedings go back to the claim stage and you have a new opportunity to fill in the reply to the claim form, make an offer of payment or put in any defence or counterclaim. Having a judgment set aside does not wipe out the proceedings altogether but the details will be removed from the County Court Register until a new judgment is made."

Note those "make an offer of payment" and "removed from county court register" bits: they buy you time to get the money to pay and you don't have a CCJ until after that new hearing.


The next option is:

"a judgment is ... taken off the register if: you paid it in full within one month".

If it's not yet one month and you can get the money and pay it off within one month of the CCJ, it should not appear on your credit record! So get moving if it was two or three weeks ago - you'd still have time to get it paid without a CCJ on your record. Do get it set aside as above anyway if you can, because that buys you more time and you may need that time.

So, your best plan, in order:

1. Get it set aside if you qualify (easy if it's a default judgment and it probably is).

2. If you qualify, tell the Land Registry that you have applied to have the judgment set aside and you dispute the charge on the property.

3. Phone the solicitor and Amex and tell them you realise you screwed up (and are getting the judgment set aside, if that applies) to give you time to get the money together to pay them, they shouldn't worry when they get the documents from the court. Ask them to halt the Land Registry action while you get things in place, telling them that you have disputed the Land Registry charge if you have done that. And tell them at each stage as you do other things, so they know you're working on it. Don't promise them anything more than this - don't agree to schedule to pay, just tell them what you're working on and that you'll tell them more as you get the pieces in place.

4. Get the money. Extra mortgage advance from your current lender is best, second best is a loan. Don't worry about high interest rates, they beat the alternative of having you pay a fortune in extra mortgage payments. Or an arranged overdraft if your bank is happy to do that. How doesn't matter that much, just getting to May without a CCJ is the objective.

Good luck! And remember: even 100% interest on a loan is a good deal until you can pay the loan back in May with a remortgage. Get the best deal you can, but it beats the alternative of having a CCJ!

BTW, for the brokers, is a set aside CCJ still a CCJ for mortgage purposes?