Charge Order Unsecured Loan

Greenalien

Evening all, just looking for some advice, please bare with my explanation.

15 years ago I took out a second charge secured loan on a property, it was repossessed in 2 years after my accounts defaulted. The account has now been passed on to a debt collection firm, I have paid some it off intermittently over the last decade when I can afford to.

On a statement and i've just noticed as well as the account balance here is a huge parked interest charge to pay when the loan is cleared. There is not a hope in hell I will ever pay that off before I leave this mortal coil.


I don't mind continuing to pay what I can when I can but, my question is. I now have a house again with a mortgage. Despite the previous loan now being unsecured on anything and 15 years old, could they still start legal proceedings and issue a CCJ & a charge order on the current property?

Ben8282

If this was a second charge, how did they manage to repossess the property when there was a first charge on it?
If the value of the property at sale was insufficient to cover the first and second charge, then what possible motive would the holder of the second charge have had for forcing a sale? Absolutely not in their best interests.
Don't really understand why and to who you have been making these 'intermittent' payments. It comes across as very strange.
When was this passed to the DCA? When was this statement provided and by who? Interest should not be being added post default. The cannot take legal action again as it must have already been taken 13 years ago in order to secure the repossession. They cannot obtain a new ccj although presumably there is already a 13 year old one in existance? However, I don't believe that they can obtain a further charging order on your current property or enforce the current ccj without the approval of a court which is unlikely to be given.

Greenalien

The first charge was the mortgage company who repossessed it. They sold it for buttons and left a huge shortfall on the LTV.

Ben8282

Greenalien wrote: »

The first charge was the mortgage company who repossessed it. They sold it for buttons and left a huge shortfall on the LTV.

That would appear to have been a very foolish act on their part. Not in the best interests of anybody.

Greenalien

The second charge loan was taken over by a debt collection agency. I have no idea in terms of process what happened because I just upped and left to relocate for work. In ignorance I assumed the sale would just cover the debt. My head was all over the place at the time.

The debt collectors took over in 2016.

fatbelly

They could start a court claim but it would be easily defendable. The court case 15 years ago would have been for possession of the property and the second charge lender could have only started a claim for money once the value of the claim was known.

There is a 12-year period for previously secured loans but you may have extended the period by making payment. I don't think making sporadic payments over 10 years has been a very good strategy for you.

This is a better issue for the debt free wannabe forum really.

Greenalien

It’s strange because I haven’t paid anything for over a year and all they sent in the post recently was an annual statement. No payment demands etc?

Ben8282

I just upped and left to relocate for work
If you were working, why did you allow the mortgage to default and your home to be repossessed and 'sold for buttons' as you put it?
If you had an income I could understand perhaps defaulting the second loan as with the first charge on the property there is very little that they could have done to force a sale, but why the mortgage as well?
At the time of taking out the secured loan which resulted in the second charge on the property, there must have been a reasonable amount of equity in order for this loan to have been granted. What was wrong with the property that the mortgage lender accepted for it to be sold at what would appear to be a fraction of it's value? What has happened with regard to the outstanding balance on the mortgage?

Greenalien

Ben8282 wrote: »

I just upped and left to relocate for work
If you were working, why did you allow the mortgage to default and your home to be repossessed and 'sold for buttons' as you put it?
If you had an income I could understand perhaps defaulting the second loan as with the first charge on the property there is very little that they could have done to force a sale, but why the mortgage as well?
At the time of taking out the secured loan which resulted in the second charge on the property, there must have been a reasonable amount of equity in order for this loan to have been granted. What was wrong with the property that the mortgage lender accepted for it to be sold at what would appear to be a fraction of it's value? What has happened with regard to the outstanding balance on the mortgage?

Both my parents died within 6 months of each other, I was 25, single, with no other family living on my own. It simply took a huge toll on my mental health. I had to quit the job I was in through stress and then my money ran out. I decided to run away, simple as that. Sometimes in life you make irrational decisions at stressful times.

Both the mortgage and loans were 150k in total the property was sold for 70k. I initially tried to sell it myself but I was in negative equity on the offers coming in so I could not proceed to clear the second charge, I have no idea of the process after that . The mortgage lender contacted me in 2010 and I cleared the remaining balance to them. It was only then I realised that the I would owe a huge amount still on the second charge I could not afford.

Ben8282

Even allowing for the fact that the property may not have been sold for the best possible price, it makes no sense that if you were in a negative equity situation you would have been able to get further loans secured on the property. The difference between the amount of the mortgage and loans secured on it and the sale price is very large.
Considering your age, you couldn't have owned the property for all that long and it really is difficult to understand how this situation was allowed to come about.

Greenalien

When I took the second charge loan the company clearly over valued the property. There is a reason they went into liquidation.

It is what it is, like I said in my OP I am just concerned they will now attempt to chase me out of this property now even though they don't have a charge on it.