Can You lose Your home by not paying credit cards

dani33

They are an unsecured debt, yet i read on another thread that a charging order had been put on their home through non payment. is this correct?
I am still considering best option personally as i am struggling with minimum payments, and wondering how long it is before the cards will take you to court.
I have done a budget plan with the cccs and because my property is on the market with good equity i really dont want to go down the dmp route as this will ruin my credit rating(obviously not paying minimum payments will not be good either) but my feeling is if i can pay half one month and the rest the month after i will be able to do this.
This will give me some leeway at least, and i will not have to take out a secured loan, having spoken to a few companies one having given me different repayment figures to what i was told over the phone!
My property has been on the market for nearly 2 months and i have told the agent i will consider a slightly lower offer.

any advice appreciated, thanks

Summer29

As far as I know any lender can put an interest in on your house so that they get payment when you sell the house. Im sure someone else will come and give a better overview, Im not sure how they would look at you as you are sellingyour house though.

As to court ime and i do not have any equity, its about 3 months before lenders start taking any action and by that i mean threatening defaults etc, court in the form of CCJ's can be months, some can take over a year!
Depends on the company some are worse than others.

immoral_angeluk

IF a loan isn't secured then your house won't be at risk. A creditor can apply to have a charge put on your house so they get the money back from any sale but it's a long and costly process for them.

Crown

Just to second what the previous posters have said.

If the Debt is all on unsecured cards you will not lose your home if you cannot afford to pay in most cases. What will happen normally is the credit card comapny will pass your account to a debt collector who may very well threaten you with all sorts of legal action if you do not pay up. the bottom line is that the debt is unsecured so they cannot really do anything.

If it does go to court then the judge would look at your cuurent income and if you are making payments that the court feel are reasonable then normally the judge will agree to you maining that level of payment. If they creditor seeks a Charging order to be placed on your home it would mean that when and if you decided to sell up then they would have a legal claim to the money owed to them plus interest what is normally at 8%. There is no law as far as im aware that a creditor can force you to sell your home unless its secured or is a government type debt like Council Tax ect.

The thing to remember is that each case is different so when I say normally thats from my own experience and time spent on this site.

Good luck with it

CLAPTON

best if you post your SOA and your full debt details.
I'm a little unclear whether or not you are making the minimum payments or not or maybe you think you may not be able to pay shortly.
Bare in mind that if you miss say about 3 payments they may default your account.
A default is only marginally better than a CCJ and will trash your credit rating for 6 years... so think carefully about this and consider posting your full SOA and circumstances.

Tootsie_Roll

Crown wrote: »

Just to second what the previous posters have said.

If the Debt is all on unsecured cards you will not lose your home if you cannot afford to pay in most cases. What will happen normally is the credit card comapny will pass your account to a debt collector who may very well threaten you with all sorts of legal action if you do not pay up. the bottom line is that the debt is unsecured so they cannot really do anything.

If it does go to court then the judge would look at your cuurent income and if you are making payments that the court feel are reasonable then normally the judge will agree to you maining that level of payment. If they creditor seeks a Charging order to be placed on your home it would mean that when and if you decided to sell up then they would have a legal claim to the money owed to them plus interest what is normally at 8%. There is no law as far as im aware that a creditor can force you to sell your home unless its secured or is a government type debt like Council Tax ect.

The thing to remember is that each case is different so when I say normally thats from my own experience and time spent on this site.

Good luck with it

Crown

I have seen you post similar information previously and thought I had better correct you before you potentially mislead (unintentionally) anybody else.

Whilst it is highly unlikely (really must stress this), it is possible you could lose your home over an unsecured debt. Most lenders will apply for a forthwith judgement requiring the full balance repayed immediately - no chance for payment by instalments and then apply for a charging order so the debt is immediately secured. It is then at this stage they will enter negotiations for a repayment schedule via the court and then if you subsequently default on the court arrangement they can they apply for a forced sale of the house. Doesn't happen very often but is possible.

Dr_Hook

Here's what PayPlan have to say about charging orders - link

Might clarify things a little.

Crown

Tootsie_Roll wrote: »

Crown

I have seen you post similar information previously and thought I had better correct you before you potentially mislead (unintentionally) anybody else.

Whilst it is highly unlikely (really must stress this), it is possible you could lose your home over an unsecured debt. Most lenders will apply for a forthwith judgement requiring the full balance repayed immediately - no chance for payment by instalments and then apply for a charging order so the debt is immediately secured. It is then at this stage they will enter negotiations for a repayment schedule via the court and then if you subsequently default on the court arrangement they can they apply for a forced sale of the house. Doesn't happen very often but is possible.

Thank you for your post. I dont mean to mislead anyone although I do think I made it clear that the OP wouldnt lose there home in most cases. If the case went to court as long as the agreed payments kept upto date then the creditor is unlikey to be able to force you to sell up as you wouldnt have broken the terms of the Judgement.

I dont know I this could be misleading but in any financial situation ANYONE should seek professional advice and not just take someones word for it on the internet. My Views are my own and I dont claim to work or have any professional experience.

Cheers

peb

Just one thing to add - if your creditors are also your Mortgage lenders they can class a default on, say a credit card, as a default on the Mortgage and seek possession that way. This works in teh same way that some banks have taken payments from current accounts for credit cards where monies are owing, Again very very rare but possible. in any event if the OP is trying to sell no Court would grant possession immediatley. If possession is granted and the property is sold the Op would still receive any equity after any secured loans have repaid.

dani33

Thanks everyone the advice is appreciated.
My plan is to speak to the secured loan company central capital tomorrow to cancel the loan that they were going to give me, they sent me the forms but the early repyment figures appear to be extortionate ie borrowing 14,500 over 20 years i would pay 943.53 for each £1000 borrowed if i repaid in 5 years as a penalty, my intention is to pay once property is sold ie very soon.
is there anyone who can explain to me how this repayment works? what would i repay on top of 14,500 if i paid say in 6 months- 1 year.
i will also speak to cccs about whether it would be best to take a loan or go on a dmp. another question if i go on a dmp and later fully pay off would i find it very difficult to get another mortgage?...thanks again.

dani33

by the way has anyone had any positive experiences with any of these specialised secured loan companies or do we only here about the bad experiences?