possible secured loan shortfall

[cuz]

hi i hope someone can help me please

we currently have our house for sale for 104k and the mortgage is 65k with halifax, but we also have a secured loan with nemo and the redemtion figure is 45k

i know we will be short IF the house sells at 104k, but with the way things are at the moment i cant see the house selling at all. We are really struggling financially a lot by way of, only feeding the kids as we havnt enough for ourselves for most days and not having money for gas for days on end. I dont want to go on, but things are really really bad.

We cant let the house get repossessed as my husband could loose his job.

Does anyone know if nemo could stop a sale from going through?

I think are best option is to lower the house price to about 80k to attract a fast buyer looking for a bargain and that way we could still pay off halifax.

We need the house to be gone asap

Any advice or comments would be really helpful

thanks

Edited January 20, 2009 by cuz

[cuz]

[cuz]

ive just read all the papaer work i have on the nemo loan, and there is nothing in the terms and conditions that relate to either transfering the loan if you sell and but another property, or if you sell and dont buy again.

 

my husband rang nemo and the first advisor said any monies left over from the sale would go to them, then any outstanding debt would transfer to a non secured loan, and before i had time to tell him to get this in writing he had hung up.

 

when he rang again to ask for it in writing the advisor then said, the first advice was wrong and if we sold our house for less than its value they could put a stop to the sale

 

i really dont know where we stand, im hoping someone here knows a bit more

 

any advice would be really appreciated

thanks

[midge61]

Hi

 

I don't know the answer but this will bump the thread and hopefully someone in the know will answer.

 

Good luck

[felixfly]

Hi

 

I had a similar problem and a secured loan with Welcome as well as a mortgage with Halifax. Basically Halifax being the main lender can do what was called a 'power of sale' and force the sale whether the loan company want to or not. I was in arrears though and possibly looking at repossesion so that may have made the difference.

 

I also have to pay the outstanding balance as an unsecured loan and i have not managed to find out the legal position on this. Especially seeing as Welcome have not provided a copy of my CCA so i can check what it says about it.

[cuz]

thanks for your reply felixfly,

we also have arrears on the mortgage, but i need to try everything i can before its gets to a repossession, i willl speak to halifax and see if the 'power of sale' would apply.

 

thanks again

[bobbyh99]

Are you sure that the 45k redemption from Nemo is correct. How much did you borrow and when?

[cuz]

Yeah, we borrowed 30k jan 2008, and they have added the ppi insurance as well.

 

At the time of taking out the loan the advisor stated i needed to sign for the insurance or the loan money would not be sent out.

 

I sent them a letter a few weeks ago to claim for mis-selling on the ppi, but they sent me a very long letter disputing it was mis-sold and they will not be refunding the ppi.

 

When I looked at the cca, the insurance totals to about 12k!!

 

Ive read a few posts on claiming back the ppi, but im not really sure what I should do next

 

Any help would be really great, thanks

[gizmo111]

What is your husband does for a living that he would lose his job on repossesion?

[cuz]

he is a police constable

[gizmo111]

he is a police constable

 

 

It is not automatic that he would lose his job - has he spoke to his HR dept about this? police officers are allowed IVA's and in some cases bankruptcy.

[cuz]

yes he has spoken to hr and his inspector, he cant get repossessed but he can go bankrupt, but this wouldnt be any good to us as the secured loan is in joint names

[GhostDebt]

Hi,

Not sure how things are proceeding with this at the moment, but it is possible to sell a house with a shortfall on the secured loans.

The lender has to agree to changing the remaining debt to an unsecured loan, but the first charge holder gets paid in full first before any remaining money is paid to the next lender.

You'll need to make some sort of payment arrangement to them for the amount left based on your income and expenditure since its unsecured after the sale.

We sold our house with a shortfall and via a quick sale company which was the right choice for us at the time.

 

Good luck

Best regards.

[bobbyh99]

Yeah, we borrowed 30k jan 2008, and they have added the ppi insurance as well.

 

At the time of taking out the loan the advisor stated i needed to sign for the insurance or the loan money would not be sent out.

 

I sent them a letter a few weeks ago to claim for mis-selling on the ppi, but they sent me a very long letter disputing it was mis-sold and they will not be refunding the ppi.

 

When I looked at the cca, the insurance totals to about 12k!!

 

Ive read a few posts on claiming back the ppi, but im not really sure what I should do next

 

Any help would be really great, thanks

 

Have a read through the PPI threads. I think once a company gives you its final answer about mis-selling PPI then the next step is FOS. Read the Sticky's at the top, this should give you a guide!

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/

 

This can be quite a lengthy process though so probably won't help financially now! But if you can proove the mis-selling of PPI, then the secured loan will be reduced!

 

OK so you borrowed £30K and the PPI was £12k, have they given you a redemption statement? if they have can you post up exactly what the figures are and what they are for?

 

Bobby

[cuz]

hi GhostDebt,

could you tell me who you used for the quick sell of your house, and where they ok?

ive been trying to convince my OH that this would be a good idea for us, maybe if I can get some good feedback from someone who has done this might suade him to go for it.

thanks

[cuz]

hi bobby

I sent nemo the second letter still disputing the ppi, and they responded with the same answer and telling me to take it up with the financial ombudsman. Thanks for the link I will go through it before I call them.

 

I dont think I have an updated redemption statement, im going to have a look and if not I will call them and ask for a revised figure with a breakdown of the amount

 

Thanks for your help

[Guest suziedarkness]

Cuz,

 

i was in the same position as you and I dontknow if I can be of any help but ....

My home was repossessed mid 2007. Aswell as the mortgage I had a 2nd charge with Nemo and a 3rd charge with welcome.

 

the main mortgage was with GE Money and they sold my house well below market value, piled on heaps of charges and when it was sold I had only £5,000 to pay off of Nemo.

 

what with all the charges the companies continue to lump on, I have a shortfall of over £80,000.

 

This site has been my salvation and I have learnt so much and am indebted to everyone here who pass on their knowledge.

 

Now both my loans were taken out prior to Apr 2007 and were subject to CCA 1974 where applicable.

 

I was sure that my loans were unenforceable thanks to info on here and after consulting with a solicitor he agreed my findings and is working on my behalf to get them wiped out.

 

I suggest that you get legal advice from a local solicitor or CAB as misselling of PPI still aplies and there are such things as unfair relashionships with regard to mortgages, secured loans etc.

 

May I ask, did you arrange this loan via a Broker? This could be significant.

 

Suzie

[cuz]

Hi Suzie

 

We arranged the loan ourselves direct with nemo and not through a broker.

 

We really need to sell quickly so were looking at anything else before it gets to repossession.

 

I,m still looking at all the info on this site as im not sure how unenforcable cca,s work

 

thanks for your advice, everyone here is very helpful, I hope you manage to write off your debts

[GhostDebt]

Hi Cuz,

The company we dealt with handled it well, but we spent some time looking for a good company. (there seem to be a number who are just out to take advantage of people in an unfortunate position).

Please note that they purchase the house at below market level though, but they can sort out good solicitors who can help negotiate the shortfall.

Will send you a message with the company name in it.

Not sure how the current housing market will affect you, but if this is the right decision for you I hope it goes well.

Best regards and keep us updated....

[cuz]

Hi GhostDebt, thanks for the reply I would really appreciate it if you would send me the company name via a pm

thanks

[cuz]

Ok, ive now got the redemption figures through, mortgage is 60k and nemo is 42k.

 

The house was valued at 110k, and is up for sale for 99k.

 

I have called a few quick sale companys and was offered between 60k and 70k, I have another company coming out tomorrow and he has given an offer of 75k.

 

In the meantime I called nemo and asked for advice as to what would happen as we are thinking of accepting an offer for 75k (i havnt had this offer yet, i wanted to know what there reaction would be) the advisor couldnt answer any questions over the phone, so i have just received a letter from them today, they are asking for:

 

settlement figures for the mortgage with a full breakdown of the balance

 

memorandum of sale including full breakdown of marketing activity

 

written confirmation of estate fees

 

written confimation of solicitors fees

 

written evidence of previous attempts to gain unsecured lending to clear the proposed shortfall

 

completed income and expenditure form with upto date proof of income

 

a proposed repayment schedule

 

proposed further contact address "should the neg equity sale be approved by us"

 

it also goes on to say they will give us a decision within 10 working days, however they reserve the right to decline the application without providing an explanation and this facility may be withdrawn at any time.

 

I was under assumption that as we are in financial difficulties and are struggling with the mortgage and loan, halifax could use a power of sale, so they get their money back. If this is correct, should I ignore the letter from nemo, they seem to want a lot of information then stating that they can withdraw the offer at any time?

 

Any advice or comments would be really great as im in a quandry

thanks

[petermb]

I would always advise anyone who is facing repossession to contact a professional claims company. Where you are dealing with the likes of Nemo and Welcome and the like there is usually a broker involved. This does make all the difference and you will see in the coming months that people will be recovering large amount of compensation where properties haev been repossessed when the lender had no right to do so.

 

The main issues that will affect this is ppi on second charge loansand broker involvement. These sound pretty unimportant issues but lenders have propogated the idea that ppi and stuff is a minor matter. Dont believe it for a moment .

[GhostDebt]

Hi Cuz,

I hope things are going ok, I am sure things will work out but can't offer too much advice 'cos we don't know exactly how things work as the solicitors for our sale dealt with the shortfall for us.

Just hope things work out for you successfully.

Best regards

[cuz]

thanks ghostdebt, we had a really good solicitor when we bought the house 7 years ago so i think i will give them a call.

 

just had the quick sale man in, and its sounds like a complete [problem], he thinks an investor wouldnt pay any more than 60k, so instead i should use him to place private adverts in the local paper which states the house as full deposit and legal fees paid (which we have to pay) then on completion his fees are approx 3k

 

AAAAGGGG!!!!!

 

sorry it really is unlucky friday 13th for me, having a really bad day

[gizmo111]

yes he has spoken to hr and his inspector, he cant get repossessed but he can go bankrupt, but this wouldnt be any good to us as the secured loan is in joint names

 

I'd check this again - what is the reasoning behind this if all the debts can then be included in the BR?