Picture Secured Loan - repossession?

kenlyn

Hi, have been reading various threads with interest and amazed at the quality of advice, very personal experiences shared and the great support offered to all.
I'm a newbie so please forgive if this question has been asked before. Has anyone had a secured loan with Picture Financial, missed a few payments and had their house repossessed by them? We've had a secured loan with them for about 18months and all ok until now. OH long term sick for 6 months & now on half pay so finding difficulty in managing. Been told by Picture that any breathing space they can give would only be for 2/3 months (reduced payments etc) and more or less after that, the heavy guns come in. Have asked my BSoc if they could offer me facility of extra on the mortgage to pay these off but not interested due to our circumstances. Would they be able to go for repossession after 3 months or 3 missed payments? Any, any advice most gratefully appreciated. Thank you all for reading this.

headoutthesand

Did you take out the payment protection cover?

I have a loan with them but have never missed a payment so cannot answer your question.

I know that they do not let you take payment holidays from your mortgage provider so i just assumed that you can't take payment holidays from them.

I know it's not ideal but if I was in your situation I would pay them, mortgage, CT, utilities before any other non secured debt.

Try posting on the Debt Free Wannabe board - i'm sure you'll find someone else in the same situation who can enlighten you.

Do not dispare though - things will get better

jonesMUFCforever

Sorry to be the bearer of bad news but in theory they could go for repossession.

In reality and as Picture loans are in administration provided you pay as much as you can and not let the situation deteriorate further they will huff and puff but not go for the kill.

In order to get a repossession they need to go to court - not many judges will kick you out in your circumstances especially if they can see that you are doing your best to repay.

One last thing did you not get any PPI with this loan ( or your main mortgage for that matter)?

kenlyn

Thanks for these. Yes we did take out PPI with them and still fighting for it (appeals etc). My OH had a pre existing medical condition but hasn't suffered with it, lost any time from work or seen the Dr about it for 13 years so I feel we meet the criteria in policy for payment as it says "...no treatment...for 24 months". As it is also a mental health problem, they say it is not covered (his condition is not stress). Taking advice from all sorts on it but while they are fighting it, we are not being paid out which is so upsetting.
When it says above in administration, would that have any effect on us or other borrowers then? Sorry bit dim in this respect!
Wouldn't be able to pay mortgage, bills & this secured loan though. Can manage most of outgoings but not this secured loan now our income has been cut in half.

fatbelly

Kenlyn - this sounds quite serious. Suggest posting on the debt-free wannabee board where they will ask you to do a Statement of Affairs.

The secured loan is a priority debt - some other things you're paying may be non-priority and they can help you on DFW with what is what.

You're also going to need to check that you're getting all the benefits you're entitled to: use https://www.entitledto.com and the benefits board.

Lots of support on this site - make use of it!

Just had another thought - if they start court action and this is a regulated agreement (under 25k), you can defend it with a time order as this is a 'temporary difficulty'.

See http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=06_time_orders

and pm me if you need more info on these things - they're not used much and they're not easy to get.

petermb_2

kenlyn wrote: »

Thanks for these. Yes we did take out PPI with them and still fighting for it (appeals etc). My OH had a pre existing medical condition but hasn't suffered with it, lost any time from work or seen the Dr about it for 13 years so I feel we meet the criteria in policy for payment as it says "...no treatment...for 24 months". As it is also a mental health problem, they say it is not covered (his condition is not stress). Taking advice from all sorts on it but while they are fighting it, we are not being paid out which is so upsetting.
When it says above in administration, would that have any effect on us or other borrowers then? Sorry bit dim in this respect!
Wouldn't be able to pay mortgage, bills & this secured loan though. Can manage most of outgoings but not this secured loan now our income has been cut in half.

Hi, repossession is my pet hate and should be banished from our land, especially when the lenders get so many things wrong and break the law of the land, the very law they use to turf you out of your home.
Your saving grace may be that Picture have got things wrong too, which I suspect they will have done, but you will have to act quickly.

kenlyn

Thanks all so much for these notes. I will go onto Debt Free Board as suggested. Been looking at adverts for house buying and then renting back from the company. Don't have a lot of equity in the house and as this seems it may be a long term thing, whether to get out now before we are pushed.
Petermb: do you think it would be any use me writing again with an offer of say half normal payments? Could just about scrape that. Our B.Soc been very good and we are just paying interest only now but my OH isn't likely to work again so it's not as if time off from work is just a temporary thing either. Sorry to go on and thanks for advice.

mightymouse

Hi

If as you say you have little equity then it is unlikely that picture will seek repossession due to costs.

you need to work out your strategy before going to a sell and rent back and in any event there will not be enough equity will there?

Contact 'free' - debt councillors and see what arrangments can be made and options there are before making an offer of payment.

petermb_2

Because of the ppi you will get the chance to challenge the validity of the loan. There is hope here.

Planner-wannabee

There seems to be a consensus view that (HELOC-S), that is Home Equity Lines of Credit are the great emergency product for a retiree in a financial crunch and I happen to disagree. I believe that a Personal Line of Credit at a reasonable interest rate (maybe 2-5 points above prime) is a much safer deal for a retired person. I would not want to be in a position where my shelter was on the line when I retire if I do not have the money to meet a monthly loan payment. The lenders promote the correct tax advantages for HELOCs and the interest rate is cheaper, but would you not sleep better at night when you are retired knowing that you shelter was not on the hook for missing a payment? I am not promoting default, maybe a borrower can work out an arrangement on an Unsecured Personal Line of Credit to make the payments lower, but if you sign away your home as collateral, you have no bargaining power with the lender. Some unscrupulous lender types would rather get your home at an auction price than have any interest in renegotiating better terms or payment of your HELOC. I'd say go for the Personal Unsecured Line of Credit and get them while you are still working so that the lenders will give you higher limits. What are others thoughts on this subject, or a I just way out there in loony bird territory? Maybe just too much time on my hands?

kenlyn

Would the unsecured personal line of credit be another loan then? Sorry but not really following the thread of it. Thanks