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Can HSBC take outstanding debt after house sale?
Comments
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Hes not trying to evade .... he Is in financial difficulty and needs to prioritise other debt.Housewife2020 said:Why is he trying to evade paying just pay it off0 -
Thanks for all your comments .
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Somewhere deep in the mortgage terms and conditions will be a clause that your brother agreed to when he signed the mortgage. It will say that the charge for this loan (the mortgage) can be used as security for any other debt with hsbc. The bank could say that unless mortgage amount + debt is repaid they won't remove the charge.
It is why those that have mortgaged buy-to-let properties are advised to have their residential home mortgage with a different lender, so if it all falls apart the lender of the BTLs can't come after the main home.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1 -
Is the price you are buying at genuine full market price ?? (Why would I guess it might not be...)Best regards0
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What's your point. Do you sell your car at fixed price?theartfullodger said:Is the price you are buying at genuine full market price ?? (Why would I guess it might not be...)Best regards0 -
What's 'genuine full market price' ?theartfullodger said:Is the price you are buying at genuine full market price ?? (Why would I guess it might not be...)Best regards
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It’s not an at arms length sale so it needs to be sold at a comparable price to similar properties
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With a debt management plan , there are annual budget checks between the person in the Dmp ( assuming it is a Dmp) and stepchange . If the person has extra funds in their bank account it is supposed to be declared to stepchange . They would then distribute x amount of money to each of the creditors who are owed x amount . Having said that , if hsbc are one of the creditors and they see a larger amount of money than usual , they will take whatever amount they are owed .It looks like step change will be notified by hsbc once they have taken what is owed to them . Maybe not . I would imagine they would find out as it would appear on the statement of affairs that stepchange have.If stepchange notice this payment , then the person on the Dmp would be contacted by them sooner rather than later .
I'd be very surprised if hsbc didn't take the money that is owed to them .0 -
As others have said, HSBC are likely to take the money to clear the debt if it is paid into an HSBC account. So your friend should ask for sale proceeds to be paid into an account with a different bank.
When on a DMP, debts can still accrue interest and charges. Does your friend know how much he is racking up in interest each month? Your friend might be best off using the money he gets from this house sale to clear his debts.0 -
Yep. The "all monies charge" could apply here.silvercar said:Somewhere deep in the mortgage terms and conditions will be a clause that your brother agreed to when he signed the mortgage. It will say that the charge for this loan (the mortgage) can be used as security for any other debt with hsbc. The bank could say that unless mortgage amount + debt is repaid they won't remove the charge.
It is why those that have mortgaged buy-to-let properties are advised to have their residential home mortgage with a different lender, so if it all falls apart the lender of the BTLs can't come after the main home.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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