URGENT....Repossession -v- House Sale

craigmc

Hi all

We currently have an order of possession from the court which ends on Tuesday.

We are currently in the process of selling our property which we accepted an offer on the 9th June for.

My questions are:-

1 We won't make much on the property so should we let them take possession?

2 If we countinue with the sale, we would probably have negative equity, therefore has anyone had any good dealings with GE money and should we write to them offering a full and final settlement? As they had declined to cancel our PPI....

Answers on a postcard

Thanks

silvercar

We won't make much on the property so should we let them take possession?

NO, NO, NO!

You will get a better price by selling it yourself. If you get repossessed and the money raised by the (forced) sale doesn't clear the mortgage, the lender can chase you for at least 6 years to make up the difference.

Having had a home repossessed will make getting credit, particularly a mortgage difficult in the future.

If we countinue with the sale, we would probably have negative equity, therefore has anyone had any good dealings with GE money and should we write to them offering a full and final settlement?

You can't sell unless the charges are cleared or the lenders agreed to transfer the loans to unsecured loans. Presumably the sale price will pay off the main mortgage, so you need to persuade GE to transfer some of the loan to an unsecured loan. Stress that a repossession is your only other option and this will leave them with less money.

Your other option would be to raise money elsewhere to help pay off the GE loan charge.

Selling your home now clears the deck for you to restart, a repossession continues the agony for years to come. Avoid if you can.

craigmc

Thanks silvercar

Unfortunately, I can't raise the money to pay them off elsewhere, so looks like I have little choice!

I have made a right hash of things and I will never forgive myself....think I'm on the edge!

silvercar

Contact GE and try and persuade them either to take a reduced payment in full settlement or to take some payment and transfer the rest to an unsecured loan. Emphasise to them that they will get less if they refuse to allow you to sell and the reposession goes ahead.

craigmc

Could anyone help me with a letter, I'm really struggling!

EagerLearner

Here's something to start with - I am sure others will tinker/suggest other changes but thought it good to have at least a start for you



Dear sir/madam,

Re: Account xxxxxxxxxxxxxxxxxx

Further to your recent reposession order, we would like to ask that GE Capital take a reduced payment in full settlement or agree to receive some of the payment and transfer the rest to an unsecured loan.

We are in the process of selling the property which will work much more favourably for all parties if permitted to proceed.

GE Capital will receive less if the reposession goes ahead and we are refused permission to sell.

Given the current market conditions, we would like to ask for a review of our case so a favourable resolution is reached for both parties rather than becoming another reposession statistic.

We eagerly await your response,

Kind regards,