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TonyMartian

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  1. Hello there, i'd be delighted if you could give me some input basically a family friend of mines took out a business loan, for which he gave up security of his home. He had to pay interest on it and it was up for yearly renewal. A year later the bank manager changed, they asked to him to pay it back in full (£91,000), he couldt pay it. Then HSBC agreed for him to pay back the loan within 5 years (at the end of the 5 years he'd have to make one large payment of the outstanding), during this time he had to make capital repayments, interest and management fee, which came to just over £1400 a month, he however thought it was only £740 (the new relations manager never made it clear to him verbally, she branded the figure £740 around, so he'd quickly sign the contract, which he foolishly ended up doing. Then found out it was £1400, 2 months down the line) In and out of work he fell behind on payments for 3 months and HSBC started demanding he pay the loan back in full (£86,000) or they'd start court proceedings to force sale of his house. He then wrote to them and said he'd be putting up his sons house for sale (his son lives with him), which he has done ( with full agreement of his son) and its currently on the market. He requested that he be given 12 months, in which time he'd keep paying the loan interest (£550) but not the capital repayment... The HBCS manager agreed to stopping the capital payment, however did not agree to give 12 months, but instead gave only 5 months after which she has threatened to pursue recovery under the security held over his house. She sent him a facility letter and asked him to sign it, so that he agrees to the 5 months given to him, but he has not signed it yet. The issue is his sons house will most likely not be sold within 5 months, so should he sign this document, knowing he will not be able to keep to this agreement, which i guess would not look good if he were taken to court.? or should he just let it go to the recovery department stage and maybe they'd give him the 12 months, before taking any court action? Also he is not rich, has no savings, in and out of work, no car, so i dont want people to get the wrong picture NOTE: He was the one who purchased the home for his son, the house is under his sons name though. HSBC have acknowledged this in writing and understand the loan will be repaid back via the sale of this other property (but have not given sufficient time). His son has also written in writing that he agrees to the sale of his home, and the relevant documents have been provided showing the house is indeed up for sale.
  2. Hey guys, wonder if anyone can give me any advice My dad took out a secured business loan on his main residence (with HSBC) back in 2006...the house is worth over £500,000.00 (HSBC had an valuation done in 2009)...he had a letter through the post demanding he pay back £91000 in full within 18 days or they could take him to court or debt collectors. from 2006 my dad was paying interest and then in 2009 they demanded he pay back the 95k, they then agreed that he pay £1400 a month for 5 years and then pay back the rest in one large sum at the end. However my dad has fallen behind on payments ( 2 payments , nearly 3), it was either paying off the mortgage which is £1400 a month or paying off the HSBC loan....he's already two payments behind on the mortgagee (abbey), but they came to agreement, and he's paying off arrears and keeping up to date with his current mortgage payment. He asked the HSBC business relations manager for more time, like around 6 months to a year, because he has a second property (we are joint owners), which we want to sell to payback the loan...she said she can't wait 6- 8 months for him to get the money together....if we had 12 months we could get the 91k, but we arent being given anytime. she said he had signed the document, so he either pay or they will try and force a sale. what can he do? i mean he obviously doesnt want to sell the house, but we need 12 months to get the money together and payback the loan in full will this end up in court and what could be the outcome? would they grant extra time? or force sale....i have no experience with these things, very stressful time
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