Mortgage and secured loan question

rv02

Hi
I hope I am in a right place for my question. I own a house and have a 270 all together mortgage ( 25k loan plus 235k mortgage) and have a 70k secured loan. My house is currently worth about 270 to 280k.

I am in a very desperate intubation as I am in danger of loosing my job. I want to ask to see can no one advise me if I can write to both my lenders and ask them if try let me sell the house and pay whatever I get from it to them and see if they agree to give me a discount. Alternatively I have to go BR as I have lots of unsecured loans and hand the keys back and tat way try will get far less from me as I was told to declare the shortfall in my BR.

Any advise is much appreciate it.

antrobus

Try http://www.stepchange.org/Home.aspx

silvercar

The order of priority in the event of a repossession sale would be:

1. 235k mortgage
2. 70k secured loan
3. unsecured loans

If the mortgage is paid off, the 25k loan will move to a higher interest rate.

You could ask the secured loan lenders if they would agree to a remove the charge for a partial repayment and convert the remaining amount to an unsecured loan. You would need to ask this of your secured loan as your property sale would repay the mortgage, so you don't need their consent.

If the secured loan people say no, you could ask the lender (NRAM I'm guessing) if you can do an assisted sale. This is where they assist you in selling the property without actually repossessing. I would think you would still need the secured loan people's consent, but they may be more agreeable if the approach comes from the lender.

Once the property is sold any shortfall would fall into your bankruptcy. before a sale secured loans are excluded from bankruptcy.

rv02

Thanks for the advise. Yes my mortgage is with NRAM. I suppose I have to phone them and pray that they be understanding. I know my neighbour sold his house and his mortgage company gave him 20% reduction so he could pay off his mortgage. I was hoping NRAM and first plus could do the same as if I can sell my house for 280 or 290 I'm not far from the actual amount I owe. I just think they have more to loose if I hand my keys back, but I am not sure how these things work.

Thanks again

holly_hobby

The last thing they want is a forced sale/possession, speak to them and your secured lender and see what they will agree and how figs can be managed (you may want to obtain 3 comparibles from local EAs to give an idea of the average potential sale price and resulting shortfall) .

Also, take a walk around the shelter website whom are offer excellent support, http://england.shelter.org.uk/, and your local CAB of course.

Wish you well at what will be a very worrying time .... there's lots of help and guidance availalble, so there's no need to struggle or fret on your own x

Hope this helps

Holly x