2nd mortgages/indemnity insurance

Amanda1880

Hi

Just wondering if anyone could tell me if 2nd charge lenders are likely to carry an indemnity insurance in event of repossesion.

I am due in court this month over mounting arrears and tried to go through mortgage rescue, property in major negative equity and 2nd charge refusing to release charge in order for MRS to proceed. They stand to lose everything in any scenario so seems pointless taking it to court to put my family on the streets and them to gain nothing.

Just wondering if they are likely to be carrying some insurance on their losses should they force a sale in court, and if so should i of paid it as part of the loan repayments and should it be seen on my terms and conditions.

I am just gathering evidence as im bemused as to what they are doing and looking for potential answers.

Many thanks in advance

GMS

You have asked this before........

https://forums.moneysavingexpert.com/discussion/4643003

Presumably they are taking the action because you won't/can't pay them as agreed in your terms. Nothing was ever stated that you don't need to pay in the case of negative equity etc.

If they let you not pay and took no action then nobody would ever pay them.

Amanda1880

Hi

Thanks for getting back to me, yes I have asked this before and yes its now at court stage.

I guess im just getting very anxious as to what the outcome is and with all to lose in any situation really why is it worth taking the home, im not trying to get out of paying here i just want to get on the Mortgage Rescue Scheme in which the 2nd charge not first is stopping by refusing to release their charges.

Just wondered if there was to be se sort of indemnity insurance for them to claim under would it be me that would pay that fee as part if the loan repayments, would it have to be visible on the loan agreement etc.

Thanks again

Dave_the_Ginger_Cat

Even if there were any indemnity insurance, you would still be liable to pay. My experience is that lending in the last 10-15 years is not covered by such policies, and tended to be aimed at first charges.

I would recommend you speak to Shelter or a similar organisation to make plans for your future, and probably one of the money advice centres about how to best manage any shortfall