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Secured Loan Arrears

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Does anyone know how long it takes a loan company to repossess a house. I recently lost my job as company went under and have fallen into arrears. I paying about half the monthly payment at the moment but they say they are going to file for repossession. I have another job now and am just playing catch up and was thinking if it takes a few months then I should have paid the arrears by the time that happens.

Comments

  • adyj73
    adyj73 Posts: 166 Forumite
    4-6 months. Sounds a bit harsh if they are continuing to go for possession if you are trying to clear the arrears?? Not sure a court would grant them a repossession if you are offering a plan to clear and have a job and can prove you can now pay??
  • tamiami
    tamiami Posts: 537 Forumite
    It's with Nemo and they not very consumer friendly!!
  • If they take you to court for repossession, the judge will apply the so-called Norgan rule (see http://en.wikipedia.org/wiki/Cheltenham_%26_Gloucester_Building_Society_v_Norgan). This means that you have to be able to repay the arrears within the term of the loan. Plus the usual repayments oobviously! So calculate what your "Norgan repayment" would have tto be,

    It would be better to try to clear the arrears long before this though. If you have any unsecured debts, you should consider not making any payments to that until the secured loan/mortgage arrears are cleared. But are you in an IVA, because you have posted on the IVA board?
  • tamiami
    tamiami Posts: 537 Forumite
    edited 23 January 2014 at 1:00PM
    Thanks for your reply longtermplanner.

    I was in an IVA but that finished last Sept, still waiting for completion certificate though, as normal!!

    There is still 16 years left on the secured loan, it was for 25 years originally.

    If they did take me to court do you think the court would let me keep the house based on the fact that I increased monthly payments to cover arrears once I am back on my feet in a couple of months time.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hi tamiami

    It sounds to me as though, if matters do reach court, you should be able to persuade a district judge to grant (at worst) a suspended possession order.

    Is there any equity in the property (size of Nemo loan taken into account)? I'm just curious as to their intentions - if you're in negative equity, it might be a bit rash of them to go to court. The threat of repo may just be sabre-rattling on their part, but safest to assume they mean business.

    In the meantime, it's a good idea to get something in writing to Nemo outlining your intentions. A paper trail like this will help your cause if things do go to court.

    Regards

    Dennis @NDL
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • tamiami
    tamiami Posts: 537 Forumite
    Thanks for your replies.

    There is no equity in the property really, just enough to cover mortgage and loan.

    I will be able to pay the arrears off over the next year hopefully.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    If that's the case you should be able to get the suspended order. If court action is taken then ensure you mention the Norgan case as it's binding on the lower courts (such as the county courts where these things generally take place). Read the link kindly posted up by Longtermplanner.

    In addition, we've a great guide to mortgage/secured loan arrears here:

    http://www.nationaldebtline.co.uk/england_wales/guide.php?page=guide-mortgage-arrears

    Best wishes,

    David @ NDL.
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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