Charging orders on shared ownership houses

holly_hobby

Ruby_woo wrote: »

There isn't any equity though?x

Not at the moment no ... if your estimation is right .... doesn't mean it will always be that way.

H

Ruby_woo

If she made an offer of say 50 per month do you think that would be acceptable? She can just afford that as long as other creditors continue to accept lower payments x

Ruby_woo

Oh right so would they keep an eye on house prices then.? X

holly_hobby

If thats £50 on a debt of £2,600, I would consider that very reasonable ( make sure she has sufficient left for essential bills, food, travel to work etc).

Why didn't she offer this in the first place to stop this getting so far ?

She MUST speak to their litigation dept on Monday, and get them to discontinue OR at least suspend, the current application.

Hope this helps

Holly

holly_hobby

Ruby_woo wrote: »

Oh right so would they keep an eye on house prices then.? X

No, not sure if thats meant to be tongue in cheek ?

They can still apply a CO, and IF there is free equity on sale, that will in the first place be forwarded by the solicitor to the creditor in part or full payment of the CO (with their requst to release the order to allow free title to the purchaser).

Is that clearer ?

H

Ruby_woo

Thanks holly you have been great.

So to cap, I will suggest she phones them first thing. If they won't agree should she suggest the same on thurs at court? Then would the judge agree to that rather than co maybe? X

holly_hobby

AFAIK , judgement having already been awarded, a variation order will have to be awarded by the Judge regarding a revised payment schedule (which will be based on your I&E submission).

But, yes Monday contact the creditor with the proposed payment plan, follow it up with a letter confirming what was discussed (recorded or next day delivery if affordable), and then pursue the variation order.

As I say, a CO isn't an order of sale, so even if awarded she won't be homeless, but it is a "first dibs" on any free equity on sale of the property.

H

Ruby_woo

Thank you x

CrazyAngel_3

For a £2,600 debt they Claimant is highly unlikely to apply for an Order for Sale. They will just sit omn the Charging Order and await a sale / remortgage to be paid in full.

A Charging Order can be granted and then written into the Order that it is paid by instalments. I would suggest that your friend attend / or write to court offering the £50 per month by and that this be written into the Final Charging Order. Therefore if your friend is worried, as long as she makes all required payments then no Order for Sale application can be made.

Ruby_woo

Thank you crazy angel x