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    • CharlieLido16
    • By CharlieLido16 9th Apr 18, 4:39 PM
    • 2Posts
    • 1Thanks
    CharlieLido16
    Paying off a mortgage
    • #1
    • 9th Apr 18, 4:39 PM
    Paying off a mortgage 9th Apr 18 at 4:39 PM
    Please does anyone know if banks will take an offer on a mortgage that is overdue for payment? As a Mortgage is a secured loan, is it worth asking whether they (the lender) will take less than is due so that the mortgage is repaid? I have had a mortgage with HSBC which was taken out with the old Midland bank and due to ill health the interest was paid by DWP and this continued when I reached retirement. Now that the government had stopped Mortgage help and made it into a loan it is another worry. A relative has offered to help but does not have enough cash to pay the whole amount and wonders whether an offer would be accepted. I just donít know what to do. HSBC are getting heavy regarding the money due and I am wondering if anyone else has any experience of this. The people who ring are from a collection department and I think I would have to talk to someone higher up but I am not sure where to start. Any advice would be appreciated, thank you
Page 1
    • Thrugelmir
    • By Thrugelmir 9th Apr 18, 6:28 PM
    • 58,163 Posts
    • 51,521 Thanks
    Thrugelmir
    • #2
    • 9th Apr 18, 6:28 PM
    • #2
    • 9th Apr 18, 6:28 PM
    Please does anyone know if banks will take an offer on a mortgage that is overdue for payment? As a Mortgage is a secured loan, is it worth asking whether they (the lender) will take less than is due so that the mortgage is repaid?
    Originally posted by CharlieLido16
    Precisely the whole reason that mortgages are secured loans. Failure to pay will result in repossession. Better to plan your own exit to avoid unnecessary charges.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ThePants999
    • By ThePants999 9th Apr 18, 7:17 PM
    • 1,091 Posts
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    ThePants999
    • #3
    • 9th Apr 18, 7:17 PM
    • #3
    • 9th Apr 18, 7:17 PM
    Imagine a stranger owes you money, but they're in trouble. You can either (a) accept a portion of what you're owed, or (b) push for the full amount, but run the risk that they go bankrupt and you might get even less than you got under (a). Tricky choice, isn't it?

    Now imagine the same situation, except there's an option (c) - you can seize an asset of theirs and sell it to get all your money back. Oh, and by the way, you're a public company who's legally obliged to maximise shareholder value. Easy choice now, huh?

    The reason why mortgage interest rates are lower than interest rates on unsecured loans is because the lender can and will repossess your house if you don't keep up the agreed payments. Sorry.
    • John-K
    • By John-K 9th Apr 18, 9:37 PM
    • 516 Posts
    • 732 Thanks
    John-K
    • #4
    • 9th Apr 18, 9:37 PM
    • #4
    • 9th Apr 18, 9:37 PM
    Absolutely no hope whatsoever that they will accept an offer. As others have said, they have your house as collateral. You live in it, but they in effect own it, and can and will force a sale if they need to to recover their money.

    You need to work with the bank on this, show willing, and very likely get on with selling the house yourself. This avoids the fees, and also avoids it being so,d cheap at auction.

    How much do you owe, and what is the house worth?
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