2nd charge loan

lcarolb

we have a 2nd charge loan which We have fallen behind on slightly I asked the lender if we could agree a payment plan for a few months as my husband is currently not earning so to get back on our feet.
thry said no and they are termination h the agreement 
when it goes to court are we able to agree on court a payment ?? Or will the court just force the sale ?
surely we should be allowed to set a payment plan first 

csgohan4

consider contacting step change for help with your debt, if you are falling behind in your payments, the lender is under no obligation to be reasonable, only to follow the terms and conditions you both agreed to, which is to pay back the loan under the current payment plan. The lender are understandably not happy as your track record isn't great for paying back. 

ACG

Can you pay anything towards the second charge? 
It might help you in court to explain you have been making payments and once your husband is back in work you plan to make up repayments and also explain that you did try to make an arrangement with them but they were unwilling.

It might also be worth making a complaint and taking it to the ombudsman if they reject your complaint. 

I suppose a lot depends on the circumstances. If you are saying he will return to work in 3 months, I would like to think they would be open to agreeing something, if you are saying it could be 3 years, then I suppose realistically they are actually helping you out indirectly. If you are not making any payments, the interest is compounded, so the balance goes up faster and faster every month.

Retired_Mortgage_Adviser

csgohan4 said:

the lender is under no obligation to be reasonable

That is incorrect.

If the lender is FCA regulated (as I'm sure it is), the FCA requires that "a firm must treat customers in default or in arrears difficulties with forbearance and due consideration.". Yes it is subjective but they most definitely have an obligation to be reasonable in how they treat you. When it comes to repossessing a main residence, the standards will be higher as compared to (say) reposessing a car due to a default.

If you feel they haven't followed the above, as ACG said, make a formal complaint to the lender explaining your plan and if that fails, take it to the ombudsman. For help with drafting this, do contact a debt advice charity such as Citizen's Advice or Stepchange.

Thrugelmir

When you say slightly behind. How far? 
Are you still making payments to unsecured creditors? 

B_DOG

csgohan4 said:

consider contacting step change for help with your debt, if you are falling behind in your payments, the lender is under no obligation to be reasonable, only to follow the terms and conditions you both agreed to, which is to pay back the loan under the current payment plan. The lender are understandably not happy as your track record isn't great for paying back. 

What nonsense.
Do you have any idea of the mountain of nanny-state regulations there is for credit firms to navigate when it comes to debt arrears? They don't just have to be reasonable, they have to be seen to be reasonable. The courts and the Ombudsman always side with the "innocent borrower". Going by what has been said by the poster, it will be a good long time before it gets to a repo or a forced sale.

lcarolb

Thrugelmir said:

When you say slightly behind. How far? 
Are you still making payments to unsecured creditors? 

3 months just by the day 

lcarolb

Retired_Mortgage_Adviser said:

csgohan4 said:

the lender is under no obligation to be reasonable

That is incorrect.

If the lender is FCA regulated (as I'm sure it is), the FCA requires that "a firm must treat customers in default or in arrears difficulties with forbearance and due consideration.". Yes it is subjective but they most definitely have an obligation to be reasonable in how they treat you. When it comes to repossessing a main residence, the standards will be higher as compared to (say) reposessing a car due to a default.

If you feel they haven't followed the above, as ACG said, make a formal complaint to the lender explaining your plan and if that fails, take it to the ombudsman. For help with drafting this, do contact a debt advice charity such as Citizen's Advice or Stepchange.

Yes I thought they had to follow steps before going too far 
i am going to write again and try to set an agreement before it goes to
court
i am still paying as much as possible 

Thrugelmir

Are you able to pay more than is being charged in interest every month? 
Have you approached your main lender for a reduction as well? 

lcarolb

Yes we could probably do more than the interest 
is it worth asking if they will accept that ? 

csgohan4

B_DOG said:

csgohan4 said:

consider contacting step change for help with your debt, if you are falling behind in your payments, the lender is under no obligation to be reasonable, only to follow the terms and conditions you both agreed to, which is to pay back the loan under the current payment plan. The lender are understandably not happy as your track record isn't great for paying back. 

What nonsense.
Do you have any idea of the mountain of nanny-state regulations there is for credit firms to navigate when it comes to debt arrears? They don't just have to be reasonable, they have to be seen to be reasonable. The courts and the Ombudsman always side with the "innocent borrower". Going by what has been said by the poster, it will be a good long time before it gets to a repo or a forced sale.

Your forgetting the lender has already been reasonable by giving them a payment plan and put a charge on the property, what more do you want the lender to do? more payment holidays, more debt, for how long? Repo will always be the last resort, but how strict the lender will depend on their track record which on the OP isn't great

Of course the OP can plead with the lender and make a complaint as is their right, but that there may be a risk this could be rejected, but lets hope not and OP has nothing to lose to do so. 

Wish you all the best OP