Bank foreclosing on debt what happens next.

jeanniefaethecarse

This is a rather complicated problem, so please bear with me while I try to explain.
My mother in law owns the building in which she has her shop at the lower level, and a flat in the upper building. She also has some outbuildings which surround the building.
She runs a shop which has a £50 000 overdraft. The bank have the deeds of her property as security against the overdraft.
About three months ago she was given a special advisor by the bank who's job it was to evaluate the business and put together some sort of plan to get her out of debt, or at least reduce the debt somewhat. She was to produce a set of books, and fill in various forms, that type of thing. She didn't do it.
Yesterday she had a letter from the bank saying they were going to terminate her overdraft facility. She is going to try to contact her advisor today.
My husband and I have tried to come up with some sort of rescue plan, which involves us getting a mortgage, buying the property (worth about £150 000) buying it from her which would allow her to pay the overdraft and then decide whether to wind down the business and retire, or whether to continue her business.
What we don't know is if this would be acceptable to the bank, feasable, or even possible given that they hold the deeds against this overdraft.
We don't know the timescale either ie how quickly do these things move, and could really do with some advice as we are all worried sick.
My mother in law is not even guaranteed to phone this advisor. She has had a very sheltered life, and tends to think problems will sort themselves out.
We do have a vested interest in this. My husband has money in the shop, and indeed works there, however he has no say as to the running of it, and all the financial details etc. are in his mum's name, so I'm not sure if this advisor would be willing to speak to my husband about it at all, even though it affects him.
Can anyone advise as to how to "make things better" ?

camuk81

Jeannie,

i think the only solution is to push mum into phoning the advisor. She legally holds all the cards so if it goes belly up she is the only one responsible however your husband has invested money into the business. Under Data Protection the advisor won't discuss the account. however what I've found in the past is have a hypothetical chat with the bank can help. They won't give or confirm any details but if you can offer advise he may be able to say what the bank may do, dependent on your mother circumstances.

Get him to phone, explain who he is. If he can offer the information of the account even better, if mum is in the background she could verbally agree the advisor can speak to the husband on her behalf. Might be worth him enquiring about being made a going account or an authorised party to speak on her behalf.

RAS

I suggest you call http://www.bdl.org.uk/