Secured loan advice! :-)

rockrats

Good morning all,

I am looking for some advice on behalf of my mother in law as I think she's about to go crazy lol.

Basically the facts are:

- secured loan of £25,000 taken out for the daughter to pay off her 'past'...
- daughter to make all payments.
- daughter in new relationship, chap wants nothing to do with it, and daughter now defaulting on some payments.
- daughter is very stubborn, uses emotional blackmail etc for an easy ride.... Parents (and me) been making up the difference of the payment.
- Daughter now saying cant afford ANY payments, so parents now stuck with the loan ~£15,000 left.

I've racked my brain and the best I can come up with is that the parents shop for a cheaper loan, that they can manage (afterall they ultimately took the loan out) and just 'get what they can out of the daughter'.

It's causing a lot of unnecessary grief in the family and I'd like to help with a realistic suggestion :-)

Thankyou in advance for your advice!

Martin.

Tixy

2 issues
1 - Secured loan to parents
What is parent's situation? are they still working (not retired)? is it going to be a realistic proposal that they can find a cheaper loan?

Who is secured loan with? what is the APR on it?
What are the repayments and how much can they realistically afford (without your help)

Do they also have a mortgage on their property?

2 - Parents loan to daughter
Was anything written up in terms of a loan agreement? anything in writing at all to confirm it was a loan and intended she would repay.
If there was then at best they could try to obtain a judgement against her - but in reality if she has no money and no assets they'll have a hard time getting anything from her.
Other option is that as you say they get her to pay anything that she can be persuaded/guilt-tripped into paying.
Depending on how they feel about it - they may even want to consider changing their wills to allow for this 'early' inheritance to her.

rockrats

Hey :-)

Thanks for the quick response!
Hmm.... I'm kinda doing this 'behind the scenes' if you get me. I know nothing about APR/loan provider etc. so that's probably no use to you! Repayments are now ~£450 owing to the defaulted payments.

They both work, father-in-law full time, m-in-l part time.

I think it's more a case of they could afford the repayments but then have 'no' day-to-day money.

There was nothing at all in writing Re loan to the Daughter; the ex was in the Navy, she was Hotel manager - no repayment issues back then so more of a goodwill agreement.

Don't get me wrong the in-laws aren't about to go bust, but what little income they have is being used on something that is nothing to do with them. In all honesty, I can't see the daughter giving much more toward it. I was hoping that if they could pay off the balance with a [possible lower repayment] unsecured loan, then at least the risk of losing the house is taken away.....which ultimately is what's bothering them.

Although the current repayments have increased, the 'total' remains the same.

They're the nicest people and I wish I could do more bless them. :-)

Tixy

Its certainly a bad situation for them to be in, another case of being nice people backfiring badly.

If they could get an unsecured loan at a cheaper rate then that would be the sensible route to take.
Whether they can will depend on their circumstances, earnings and on how expensive the secured loan is, and I can understand they might not want to divulge all that to you.
In general secured loans are cheaper than unsecured if the money is from high street banks. That doesn't include those dreadful companies that advertise on daytime tv.

rockrats

:-) thankyou so much for your help. I was going to suggest trying their bank first.
Thanks again :-)

dtsazza

Alexander_john wrote: »

Hello,
Well i know the bankruptcy is obviously a massive problem. was just hoping there may be a company out there that can lend on the affordability to pay back rather than things that had happened in the past.so what should i do?

I think you've replied to the wrong post.

_Andy_

dtsazza wrote: »

I think you've replied to the wrong post.

It appears to be a spammer building up their post count