Secured Against property??

Zevon

This is a little complicated.

Went bankrupt in 2007, since discharged.
Kept house due to negative equity.
Once discharged Northern Rock told me that a loan had been secured against the property and I have been paying £100 pcm for over 4 years.
However it transpies that no loan is seccured against the property. Where do I stand?

Mouse1812

They owe you £4,800, ask for your money back plus interest.

KaiserBill

Could it be that they have obtained a charging order. This is where a creditor can have an unsecured loan turned into a secured loan without your permission.

I understand that this is something which is happening quite a lot now. It would seem that not too many people know that this can be done.

National_Debtline

Hi Zevon

I think we need to know a little more here if you please.

When was the loan in question originally taken out?

Does your credit file indicate whether any CCJ was ever obtained for any such debt?

Is it possible that you originally had an unsecured top-up loan from Northern Rock as part of one of their "Together" mortgages?

Why have you only been able to establish that the loan is not in fact secured after 4 years of payments?

If you can give some responses to these questions I'm sure that we and/or other regular can help shed some more light on this.

Regards

Dennis @NDL

alastairq

Once discharged Northern Rock told me that a loan had been secured against the property and I have been paying £100 pcm for over 4 years.
However it transpires that no loan is secured against the property

NR have made a mistake, it seems?

If there is a charging order, this wouldn't be in receipt of a monthly payment...simply, the creditor obtaining a charge on the property, gets their wonga if the property is sold. [If ...there is sufficient equity after the holder of the first charge...the mortgagor....has had their cut.]


I doubt this has happened, unless the OP has acquired a significant debt, post-BR.



If the debt preceded BR, and was unsecured at that point, then it will have fallen into the BR.

Of course, a creditor may have failed to disclose to the Courts that the debt they seek the Charge Order for, was subject to a prior BR?

Zevon

For Dennis @NDL

I think we need to know a little more here if you please.

When was the loan in question originally taken out? - To be Honest I cannot remember.

Does your credit file indicate whether any CCJ was ever obtained for any such debt? - I am trying to establish this and have written to the Official Reciever for confirmation.

Is it possible that you originally had an unsecured top-up loan from Northern Rock as part of one of their "Together" mortgages? - Yes it was a Toghether Mortgage

Why have you only been able to establish that the loan is not in fact secured after 4 years of payments? - When first approached by Northern Rock, I spoke to the official reciever and they stated that if it was the subject of a charging order re bankruptcy then I would have to pay. I wrote to NR to confirm this but never got a reply. In truth I was just so pleased to be discharged I didn't argue. I recently rang NRAM as they are now called and was told there was no charging order.

If you can give some responses to these questions I'm sure that we and/or other regular can help shed some more light on this.

Regards

Dennis @NDL

Hope this helps.

National_Debtline

Hi Zevon

Sorry for belated reply - we don't always get as much time to follow up these threads as we would like.

It seems that this debt never was secured at any point, and as such should have been entirely provable in your bankruptcy. Whether the confusion has arisen due to crossed wires or something more deliberate on Northern Rock's part we can only speculate.

Thinking about it more, is it possible that NR interpreted your payments as overpayments on the mortgage itself? How were you making the payments and were they being sent at the same time and by the same method as your mortgage instalments?

Either way you should be pursuing a refund of all payments made towards the debt since your bankruptcy, arguing that Northern Rock should have been expected to realise that these payments were designated for the unsecured loan which had been included in the bankruptcy. It may come down to whether the Financial Ombudsman feels NR had enough info to be aware that your payments were intended for and specifically designated towards the unsecured loan.

I hope this makes sense. It's certainly an unusual and slightly complicated scenario.

Dennis @NDL

Zevon

thanks for that, I still haven't heard back from the official recievers office, so I cannot confirm if the loan was included in the original bankruptcy.

tigerfeet2006

Any provable unsecured debt, whether on your paperwork or not, is included in your BR.