Picture Issue a Claim for Possesion - Please Help.

[Boss-man]

Hi All,

 

I am writing this on behalf of my sister in the hope that somenone could help.

 

She bought her house around 5 years ago taking out a 95% mortgage with Northern Rock. After living in the house for a couple of years she had accumulated considerable un secured debts (credit cards etc). She foolishly spoke to Picture the Loan who talked her into paying off all here unsecured creditors (including car finance etc) with one of their secured loans. She ended up taking the loan out for around 60K and they also forced her to take out PPI on the loand and added it to the balance.

 

A couple of years ago she ran into difficulty after a drop in income and also the end of her fixed rate with Northern Rock and Pictures rate increasing. She started to miss payments with Northern Rock and also Picture as well (also note that her normal monthly payment to picture is now almost double that of Northern Rock, despite the balance on the loan being less than half).

 

Things came ot head (or so I thought) last year when Northern Rock decided to go for repossesion. In the end (with the great help from this forum) the repossesion was suspended and an arragement made which has continued since then and Northern Rock have to be fair been very helpful.

 

Picture however are totally different proposition. They wrote to her around five weeks ago about the position of her account asking her to fill out a budget plan to see what she could afford and also told her that they would be willing accept reduced payments. She duly filled in the budget form offering payment and sent it back to them. She has heard nothing since until yesterday receiving a claim for possession from them.

 

Where should she go from here? The thing is that the property is currently worth at the most £160,000.00. Her Northern Rock balance is around £165K and they have the first charge on the property. Her Picture balance is currently around £80K and they have the second charge.

 

Looking at logically from my point of view (and I am not expert) I cannot see the point in Picture going for possesion as they would get nothing at all out of it.

 

On a side note, she is looking into the PPI side of things with picture and early indications state that she could be owed as much as 40K!

 

If anyone on here could help I would be so grateful.

 

If you need any more information please ask.

 

Many Thanks in advance,

 

Boss Man

[jansus]

Hi

 

just bumping your question up really.

 

In normal circumstances second charge companies are more likely to go for possession as they have less security- but i agree in this case it seems pointless . Perhaps they are just going to try and get a suspended possession order so that they can get an arrangement for payments that will be adhered to - who knows.

 

What is the angle on the PPI because if it is in dispute and there was a claim pending that may help on the possession defence as on the protocol rules they are not supposed to take possession whilst the loan is in dispute.