Help! Claim has been struck - house already re-possessed....advice please

Wol2

Hi All

Really hope someone here can help my friend who has asked me to post on her behalf.

At the beginning of this year, owing to default on mortgage, she was repossessed by the mortgage company.

She had, in addition, a second charge on the property from a loan company. Last month she received (courtesy of Royal Mail redirection service) a summons to court for repossession by them owing to non-payment of the loan repayments. (I think this must have been at least £10k plus interest but don't please quote me)

She immediately rang the loan company and explained the house had already been repossessed by the mortgage company and did nothing further as the loan company said they would sort it out.

It appears that despite what loan company said, the case still went to court earlier this month. Yesterday she received notification from the court that, following a letter from the Petitioner dated the day of the Court hearing, "the claim had been struck". She has not been informed what the letter from the Petitioner said or why the claim was struck (i.e. all she knows it that "The Claim was struck".)

My questions are:
What does "Claim has been struck" mean...does this mean (as I suspect) the loan company's claim was not upheld?

Where does she now stand with the loan company...does this mean the debt has now been written off?

Is it up to the loan company to get the payment back from the mortgage company once the mortgage company sell the house and will they (loan co) be able to do this or, because they are the second charge, have they not got a chance of recovering the loan?

And therefore can she still be pursued for this debt by the loan company?

How does this affect her credit rating/CCJ record?

N.B It is likely that the sale price of the house will not be sufficient to dsicharge the debts to the mortgage company let alone the loan company.

Would really appreciate some advice on this from all you lovely peeps out there. My friend has had a pretty tough time of it over the last 5 years...and it would be great if we could help her on this so she would have one less thing to worry about.

I will be emailing her this link so she can lurk, so all help gratefully appreciated.

Thanking you all in advance

Wol2
xx

penguin83

Hi Wol and friend x

The claim has been struck out which means it cannot proceed any further. As the claim appears to have been issued for possession proceedings it doesnt unfortuanately mean that the debt has been written off.

As the loan is secured it will be a registered charge against the property the charges are paid off in date order when the property is sold. So presuming the sale price is high enough the mortgage comany will be paid off and then the loan and any monies remaining minus fees will be passed onto your friend. It will be the solicitors responsibilty (whoever is handling the house sale) to divide the monies as necessary.

Your friend will not have a CCJ as a result of this claim as no monetry order was made. If there isnt sufficient monies from the sale of the property to pay off the secured loan then the debt will become unsecured and they may continue chasing her. If this is the case then I would suggest they visit the CAB to get some advice regarding making regular payments.

Hth x x

terryw

penguin83 wrote: »

Hi Wol and friend x

The claim has been struck out which means it cannot proceed any further. As the claim appears to have been issued for possession proceedings it doesnt unfortuanately mean that the debt has been written off.

As the loan is secured it will be a registered charge against the property the charges are paid off in date order when the property is sold. So presuming the sale price is high enough the mortgage comany will be paid off and then the loan and any monies remaining minus fees will be passed onto your friend. It will be the solicitors responsibilty (whoever is handling the house sale) to divide the monies as necessary.

Your friend will not have a CCJ as a result of this claim as no monetry order was made. If there isnt sufficient monies from the sale of the property to pay off the secured loan then the debt will become unsecured and they may continue chasing her. If this is the case then I would suggest they visit the CAB to get some advice regarding making regular payments.

Hth x x

What an excellent reply Penquin.

I would only add that the lady's credit record will have already been adversely affected by the re-possession and actions by the holders of the second charge are unlikely to worsen it.

terryw

Wol2

Oh wow guys and gals

Thank you tremendously both for such a speedy reply.

Hi Penguin.....loved the g-pig picture..haven;t posted one of mine yet for Smashed to see!!

terryw...thanks so much for the input.

One question:
Is there any way my friend can take action now to get this loan written off?

If we have any further questions we will post again.

Hugs to both :grouphug:

I love this site.

Wol2
xxx

MrsTinks

I can't see any way of getting the loan written off as you put it... She could consider bankrupcy but even then it won't get written off straight away and even then it would depend on her income etc - I'm not a bankrupcy expert tho so hopefully someone else can advice better on that than I can.
Unfortunately it is very much up to the debt company if they think it's not worth pursuing the debt and even then they might sell it on to a debt recovery agency... And they are a pain to deal with!
My suggestion is to go to the CCCS (see my sig) and get their advice on her situation...

Wol2

Thanks so much Tine for your reply

I will pass on your helpful advice on to my friend...

She wants me to stress to all she does not wish to avoid her responsibilities...just needs to know where she stands and what action she may need to take to resolve matters.

Wo2
xxx

smashedbooboo

Hi honey, sorry i cant give any advice on this. I wish i could. just so you know i am thinking of you and your friend. hope things can be resolved soon x x x

Wol2

hi Smashed

Thanks Hun for replying....Hope you're fine and dandy tongiht.

As Lewis Carroll once said....Twas brillig and the slithy toves..did gyre and gimble in the waves All mimsy were the borogroves etc etc...............Beware the Photobucket my SBB. ...(they are so sweet!!)

I will master this in the very near future..:D

Hugs
Wol2
xxx

smashedbooboo

Silly sod, I love your sayings. If you need to chat you know my number honey. Its not one sided you know. I think i will vote for you to be another wonder of the worls. I know you dont post that much but when you do you make an impact. You are a very special person. And anyone who has you as afriend should think themselves honoured. Massive hugs babes,

XXXXX

smashedbooboo

world i mean not worls.

Wol2

Awww Smashed...thanks so much for your post....and there was I thinking you meant worms!! (Apparently they were my staple diet...as well as pansies...no!!!... the flowers!!!..... when I was 3 years old:cool: )

Saw your post on NUmpty's thread...have sent you PM.

Big hugs
Wol2
xxx