Benficial Interest and Secured Loans

silvercar

debtinfo wrote: »

they normally only ask you to seek permission if it is in negative or close to negative equity, remember that if there is lots of equity, it would most probably go to a seperate trustee who will have their own thoughts on the matter, and in those cases the property is usually(though not always) sold.

If there is lots of equity there is little harm signing in that any sale would always lead to sufficient money to repay the creditor in full.

Chuckie1998

Now I am really confused !!
I have already paid the OR and bought back the BI, now if I don't get permission from Firstplus, does that mean that the transfer does not go through and I have lost my money?

Why would RBS, who have first charge on the house, agree to the transfer without any problem.

Surely Firstplus are holding me to randsom - sign the credit agreement or we won't give permission etc.

Chuckie1998

In case it helps, the equity in my property was calculated to be £2k.

And the OR accepted £1k. I have already paid this to the OR, plus their solicitor's fee of an additional £500.

debt_doctor

Chuckie1998 wrote: »

Now I am really confused !!
I have already paid the OR and bought back the BI, now if I don't get permission from Firstplus, does that mean that the transfer does not go through and I have lost my money?

Why would RBS, who have first charge on the house, agree to the transfer without any problem.

Surely Firstplus are holding me to randsom - sign the credit agreement or we won't give permission etc.

So the OR didn't wait for 'permission' from your lender(s) then, and did the proceedure anyway - is that what your saying?

Try to find out if the ben int sale is complete. If it is then fine.

It is clearly not in your interests to sign this 'acknowledgement deed' - the OR won't advise you on whether you should sign it - thats not in their remit, they would (quite rightly) say you must seek your own legal advice on the matter.

DD

sundays

do you think the secure lender would go for a forced sale if the 1st mortage was paid for but the 2nd ie a secure loan wasnt , if in neg equity..

Reading this, the 2nd charge wants additional paper work signed to enforce the debt if ie repossesion or abandonement or vol repos that sits otuside of the BR. ie a new debt and can chase you for it and makes it doubly hard to go BR a 2 nd time .

Ineedaname

Just to throw my thoughts in having read the discussion.

It seems to me that the OR does not need permission to assume 'ownership' of the BI in the first place, that has nothing to do with the lender whether there is equity or not, they just take it as an asset in the BR.

So if they don't need permission to take it, then the BR surely does not need permission to buy it back. It's a transaction between the BR and OR with nothing really to do with the lender.

debt_doctor

Ineedaname wrote: »

Just to throw my thoughts in having read the discussion.

It seems to me that the OR does not need permission to assume 'ownership' of the BI in the first place, that has nothing to do with the lender whether there is equity or not, they just take it as an asset in the BR.

So if they don't need permission to take it, then the BR surely does not need permission to buy it back. It's a transaction between the BR and OR with nothing really to do with the lender.

I wish I had put it as well as that ! - and I agree.

DD

Ineedaname

silvercar wrote: »

Obviously no one wants to pay for the BI without it being recorded as having been regained, so the question remains on whether it can be returned without consent of secured creditors.

The above is what made me see it more simply. I suddenly realised the BI is 'taken' without consent so it made sense that it could be returned without consent too.:D

Another thought. The lender wants to recoup their loan, BI is about anything left over so none of their business anyway. If there's nothing left over then whoever 'owns' the BI gets nothing.

Chuckie1998

That thought did cross my mind. If the OR just "took" ownership of the BI in my house and didn't ask for permission, surely they don't need permission to get it back.

I will need to send a reply back to Firstplus as they will be expecting to receive a signed copy of a new credit agreement any day now. I have no financial problems in paying both my mortgage or secured loan, and haven't had since going BR in November last year. My concern is that i do not want to sign a legally binding credit agreement if there is no requirement for me to do so. And am worried that agreement from Firstplus is legally required for the completion of the BI transfer process.

Any advice as to how I could phrase the reply to Firstplus?

debt_doctor

My advice is; find out if the purchase of your ben int is complete - if it is - never reply to FP or say no.

DD