Help with a loan & Charging Order on property

Dead_2

In 2005 I took out a loan with Northern Rock for £20k over 10 years . Unfortunately I defaulted on my monthly payments In 2006 and offered to pay Northern Rock £13.67 per month. Northern Rock took me to court and applied for a Charging Order on my property, which has recently been granted. The outstanding amount now stands at £35,708. Northern Rock have charged interest for the whole period plus costs. I am still continuing to pay £13.67 each month.

The Judge said it was in my best interest to settle the account 'sooner rather than later'. I also have two mortgages outstanding with only about £15,000 equity in my property which I jointly own with my husband. Other than an Interim Order received from the court in December 2006 I have not yet received official notification of the Charging Oder as the adjourned hearing only took place on Monday.

Like a fool I did not put myselft across very well and omitted to ask how long Northern Rock were prepared to wait and also would they consider waiting until the property is sold bearing in mind I have a 7 year old child and a mountain of other debts.

I would like you comments on the follwing two points:-

a) Are Northern Rock entitled to charge 10 years interest

b) What would make them enforce the Order and make me homeless.

Any help/comments would be appreciated.

Astaroth

You should have raised any disputes with the value of the debt at the time of the court case, since the courts have rules it as correct there will be costs and hassle involved in going back to court now to get it changed (and obviously you may not win)

To enforce the charge they would have to go back to court again and get an Order for Sale. It is very unusual for a court to actually award such an order where the debtor only has a single residence and normally the Charge Order Absolute simply sits on the property until the debtor has paid off the debt or they put the property up for sale.

You can read more about it:
http://www.ukadvice.com/bankruptcy/collections/7.html

aimingforadebtfreelife

hi,

NR will not make you homeless - they go for a charging order to protect their interest. You know have to be aware of contractural interest with a CCJ. Even though you may be paying £13 a month you will be charged 8% interest.

So you will owe more each year!!!

You will have probably dealt with Wallers Solictors which are N/Rocks solicitors - tip is to go through N Rocks own collection dept and make them an offer if possible for full and final settlement. (Wallers are not the best to deal with - im talking from experience!!). Dont be afraid to offer what you feel you can offer - ie £15,000. If they reject go for a time order which will make the court look at the interest rate charged and stop or reduce it - pointless paying £13 a month for over a £100 a montht o be added. Do this until things may look a little rosier - fingers crossed!!

I have settled a CCJ through N Rock - it can be done!! Good luck