Secured loan arrears

Belly71

Hi, new here,I have a secured loan with arrears, that's just been passed from mars capital to intrum mortgages, as I say have arrears £11,000,have had a payment plan in place, been paying £380pm, recently did a payment review that was agreed, now I've had notice from intrum that the term for this loan ended in 2019 and the full amount is now due, been in contact with them and they just keep telling me to get in touch with a company called unbiased, all they seem to want to do is give me another secured loan to pay the other one off, I have gone through stepchange though, this is the only debt that I have, obviously been paying it off at a lower rate, my question is, why now tell me the term has ended, and what are my options now, don't want to lose my home, sorry for the long thread.

MEM62

Unbiased is not a company, it is a listing service for financial advisors.  And not the best one at that.  What were the original terms of the agreement?  

retiredbanker1

What is your work/income situation now?

Could you get a normal mortgage in your name to repay the debt?

Belly71

Yes, I realise this when getting in touch with them, not helpful atall, the original loan was for£15,000,paying £320pm, long story short, got into arrears when my then partner lost his job, was in contact with them, paying what we could, then my ex and I separated and he didn't carry on with the agreement so the arrears spiralled, have had an arrangement in place paying £380pm for the last few yrs, it isn't alot and doesn't look as if it's going down what with the interest and such, was in contact with them 3months ago set up another payment plan, now mars capital have changed to intrum mortgages and they are now saying that the whole amount is due as agreement ended 5 yrs ago, if that's the case why is it only being mentioned now?

Belly71

I'm working but not in a position to get a mortgage on my own unfortunately 😕 

Gary1237

They might accept a  lower balance in full and final settlement if you can raise the balance somewhere - 

sourcrates

The fact that the original loan term has ended is neither here nor there, there is still a balance to be re-paid, and they can demand full payment until they are blue in the face, if you don`t have it, you don`t have it.

They will have three choices, they will either, take you to court to obtain the full balance, assuming they already have a charge on your property, they will be looking for the court to agree to enforce that order, however as you are living in the property, and can make some kind of payment towards the debt, the court will be unlikely to agree to that.

They will probably ask you for your income/expenditure, and determine a monthly payment amount from that, subject to making those payments, no further action will be taken.

Another option is they may just pass your account to a debt collector to collect on their behalf.

The third choice would be to sell the debt and cut their losses, in all honesty, the first option is the most likely to happen first.

Belly71

Thanks for the feedback, I have sent them paperwork, which I have done going through stepchange, with regards to what I can afford and paying off what is left, it's more than I was paying originally and should clear the debt within 2yrs, I've yet to hear from them regarding weather or not this will be acceptable.

fatbelly

Pay that amount anyway

As this is a secured loan, it could get messy if they try possession action on this

Belly71

Yes,I'm aware, but it's all I can do at the moment unfortunately😞stepchange did say that repossession is always the last resort, so I'm hoping that the offer I'm proposing will be ok for now...this I the 4th company that this has been transferred to, so have also asked for all transactions, missed payments that have been made over the yrs as don't have the original paperwork, but so far they have ignored this request 

Belly71

Still haven't heard anything with regards to a new payment plan 🙄 paperwork I sent with letter from stepchange, so still don't know if it's acceptable?have made a payment this morning for the new amount that I offered.