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Can HSBC take outstanding debt after house sale?
katyb6
Posts: 6 Forumite
some advice please.
my brother has a mortgage with HSBC , he's selling me his house and we are splitting the profit as we bought as an investment. in the meantime he's got himself into some financial difficulties and subsequently owes HSBS 6k for some unsecured debt for which he has a payment arrangement through step change. What I am asking is can HSBC demand full payment from him on settling the mortgage ?
thankyou in advance ?
my brother has a mortgage with HSBC , he's selling me his house and we are splitting the profit as we bought as an investment. in the meantime he's got himself into some financial difficulties and subsequently owes HSBS 6k for some unsecured debt for which he has a payment arrangement through step change. What I am asking is can HSBC demand full payment from him on settling the mortgage ?
thankyou in advance ?
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Comments
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Yes they can demand what they like.
If it is unsecured and there is no charging order from a court then I suspect not
If he gets the money paid into any HSBC account then I imagine HSBC will happily trouser it2 -
Basically yes they can, they won't ask for it either they will just take it. It's in the T&C's of holding an account with them.katyb6 said:some advice please.
my brother has a mortgage with HSBC , he's selling me his house and we are splitting the profit as we bought as an investment. in the meantime he's got himself into some financial difficulties and subsequently owes HSBS 6k for some unsecured debt for which he has a payment arrangement through step change. What I am asking is can HSBC demand full payment from him on settling the mortgage ?
thankyou in advance ?2 -
It's secured... right up until they remove the charge.Jumblebumble said:Yes they can demand what they like.
If it is unsecured and there is no charging order from a court then I suspect not
If he gets the money paid into any HSBC account then I imagine HSBC will happily trouser it
You want them to remove the charge? You'd better be prepared to come to an agreement about repaying the excess debt.
The charge isn't removed? No sale.0 -
What charge? The OP doesn't mention any charge on the property whatsoever?3
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They can only take it if the money is paid into a HSBC account and the right of offset applies.
Solicitor will split proceeds on sale and it is up to brother which account he has it paid into.
Mama read so much about the dangers of drinking alcohol and eating chocolate that she immediately gave up reading.1 -
AdrianC said:
Apart from the one the mortgage will have over the property being sold...DoaM said:What charge? The OP doesn't mention any charge on the property whatsoever?OP was asking about unsecured debt which has nothing whatsoever to do with the mortgage.The mortgage will be redeemed on completion. OP’s brother will receive proceeds from the sale from their solicitor - by bank transfer, cheque or whatever. As others have said, if those funds are paid into an HSBC account then HSBC may be able to take them to pay off the unsecured debts.3 -
The HSBC mortgage will have to be paid off when the property is sold.The unsecured debt will not. However, if he pays the proceeds of the sale into an HSBC bank acount, HCBC are likely to take that to pay off the debt. If he pays the proceeds into some other account, HSBC can do nothing except ask him for it or follow the normal process to reclaim money owed.3
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Why is he trying to evade paying just pay it off0
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Because it seems that he is in a Debt Management Plan with StepChange and all his creditors should be treated fairly with any lump sum he receives, not just HSBC having the lot.Housewife2020 said:Why is he trying to evade paying just pay it offMama read so much about the dangers of drinking alcohol and eating chocolate that she immediately gave up reading.1
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