Bit of a pickle

curlycarly

Hi
I am new to this forum but could do with some help if possible.

I had a personal loan that due to my financial situation at the time I could not afford to repay. I ignored the letters etc that came through for it and tried to forget about it thinking it would just go away! Obviously it didn't but I am now in the process of selling my house (I have accepted an offer) and it has come to light that I not only received a £15,000 CCJ for the debt but the firm who ended up with the debt also applied for a charging order to be put on the house for the debt. The house is in negative equity (and was when the charge was granted). I was in discussion with the mortgage company to take the shortfall on and it seems that they may agree to that; however the sale won't proceed if I can't get the other charge removed.
The discussion with the mortgage company began about 6 weeks ago and I sent them all the documents they wanted (income/expenditure etc) however once the CCJ came to light (2 weeks ago) it has cost me my job and so the mortgage company don’t know this part. I have spoken to the debt firm and told them the situation and asked them to remove it to allow the sale to proceed as potentially now if they don’t then the sale will fall through and the house could get repossessed and they will get nothing. Any tips and help would be gratefully received!

National_Debtline

Hi curlycarly

Are both the CCJ and the mortgage in your sole name, I take it?

If so, the CCJ creditor could indeed block your attempts to sell if they are not due to recoup their money as a result. This might leave you having to pursue one of the following courses of action:

- Apply to the court for an Order for Sale to effectively force the issue (see our fact sheet https://www.nationaldebtline.org/EW/factsheets/Pages/07%20EW%20Negative%20equity%20in%20your%20home/Page-03.aspx for more information. Warning - may involve hefty costs and no guarantees

- Negotiate with the creditor for a release of the charge - but they will want something in return. You may be able to persuade them to transfer the charge across to the new property once the sale is complete. You have already pointed out to them that a forced repossession would yield nothing for them - but remember that you would still owe them the money.

By the way, you are more likely to get responses to your query by posting it on the Debt-Free Wannabe board. This board is intended for queries related to Individual Voluntary Arrangements and Debt Relief Orders.

Dennis
@natdebtline

Depth_Charge

curlycarly wrote: »

Hi
I am new to this forum but could do with some help if possible.

I had a personal loan that due to my financial situation at the time I could not afford to repay. I ignored the letters etc that came through for it and tried to forget about it thinking it would just go away! Obviously it didn't but I am now in the process of selling my house (I have accepted an offer) and it has come to light that I not only received a £15,000 CCJ for the debt but the firm who ended up with the debt also applied for a charging order to be put on the house for the debt. The house is in negative equity (and was when the charge was granted). I was in discussion with the mortgage company to take the shortfall on and it seems that they may agree to that; however the sale won't proceed if I can't get the other charge removed.
The discussion with the mortgage company began about 6 weeks ago and I sent them all the documents they wanted (income/expenditure etc) however once the CCJ came to light (2 weeks ago) it has cost me my job and so the mortgage company don’t know this part. I have spoken to the debt firm and told them the situation and asked them to remove it to allow the sale to proceed as potentially now if they don’t then the sale will fall through and the house could get repossessed and they will get nothing. Any tips and help would be gratefully received!

Hi

Have you considered any other options for dealing with your debts / shortfalls as a whole?

The above of course would depend on your full circumstances and on both potential outcomes regarding the house

Just a thought

Best Wishes


DC

longtermplanner

Are you planning on buying somewhere else? If you rae, you are likely to have your mortgage offer wothdrawn if you are no longer employed.

If not, you expect to be renting, then depending on how large the mortgage shortfall is, you may want to consider bankruptcy. In this case you needn't bother with selling the house, just find somehere to move to, hand back the keys and then go bankrupt.