Secured lenders

Amanda1880

Hi

Does anyone know if Secured Lenders have insurance policies in place in cases where the customer gets repossessed?

MAny thanks in advance

kingstreet

Possibly.

However, this accords the borrower no protection as the insurer uses subrogation rights to reclaim any payment made to the lender from the borrower.

You need to ask the lender in question, if this is specific to one.

Dave_the_Ginger_Cat

No, none that I know of, and those I've worked for probably represent 90% of lending in the UK

They have not been available since mortgage indemnity guarantees were phased out, but in any event, they would still reclaim from the borrower in the event of a shortfall

Any costs as part of a repo are payable by the borrower and if there is a shortfall owing following a repo, this is also owed.

Amanda1880

Hi

Thats great just a quick overview to the question, i wanted to go through mortgage rescue following my recent marriage breakup we have 2 loans the original morg and a secured loan.

The first lender has agreed for he scheme to go ahead the 2nd lender is refusing, as they stand to lose approx 50k however, the loan was given in 2005 at a point where they were loaning 110% ltv so actually the property was never worth waht tehy loaned to us.

So as u can see we would have a big shortfall should MRS go ahead however, on flipside to this should the property get repossesed which is looking likely at this stage then the 2nd charge will still stand to get no return and actually if he house sold for market value their return wold be very small also and yet are refusing to release their charge.

I also hae a potential buyer for it for slightly more that the mrs but again i am going to come across this problem so at what point can i get out of this pickle which is why i asked the question are they forcing me to get repossessed as there is no ryme or reason to their decision.

Many thanks for any advice

Thrugelmir

Amanda1880 wrote: »

which is why i asked the question are they forcing me to get repossessed as there is no ryme or reason to their decision.

Many thanks for any advice

As per your earlier threads. The secured lender sees little possibility of ever recovering their money. So might as well cut their losses and pull out.

Amanda1880

Hi

Yes that is my theory also if they are waiting for a return they will be waiting a lifetime as the house has never been worth the amount they loaned us but are totally standing their ground and putting myself and children on the streets in the process.

I know i owe them money but this is my circumstances and they arent going to change anytime soon, so they either accept it and cut their losses as you say or im forced to get repossessed, doesnt seem fair.

This is what gives me the theory they have some cover in the event of repossesion.

THanks

Thrugelmir

Amanda1880 wrote: »

This is what gives me the theory they have some cover in the event of repossesion.

THanks

Its called higher interest rates on secured loans (2nd mortgages).
Those that pay up cover the defaulters. Risk is priced into the product.

Insurance would make the business model unprofitable.

Amanda1880

Thanks so why do u think they arebt budging on releasing the charge?

Do you think they are trying to drive a hard bargain and eventually give in??

I have asked for a review on the decision as when I submitted my I&E's they changed the figures making it look affordable which it clearly isnt.

I am just trapped it would seem with no choice but to let the property get repossesed and it seems a shame when there is a solution and its keeping a family off the streets its ludicrous.

Thanks again