Picture 2nd Secured Loan cant pay full ammount - they say they WILL get an Attachment of Earnings?

[sirbob10]

I am really needing some help. I have a house valued at £110,000 and a mortgage of £105,000 which I may need to sell. The only problem is I have a secured loan of £34,000 on my home through Picture (or whoever they are now) which has arreas of £650 and they will only get bigger as I am no longer able to afford the loan. What I am wanting to know is am I allowed to sell my home even though the secured loan won't get paid off. I am intending to rent if I can sell my home. Any advice would be much appreciated. I don't want to sell if I don't have to but will Picture?? take my home even if they won't get any proceeds from the sale.

[jellycubes]

As your in negative equity and they are unlikely to get anything it wouldnt be in their interest to reposses as the 1 st charge on the property ie mortgage would be covered first leaving nothing for picture. If you stopped paying the mortgage they could reposess in which you could go bankrupt and get rid of that 34k debt and any other debts and have a fresh start. There are a number of options and hopefully more peole will reply to your thread x

[sirbob10]

Hi

 

At the moment bankruptcy isn't an option for us so I'm going to write to them and try to come to some sort of arrangement as I am assuming they would rather have some money rather than none.

[sirbob10]

I have a mortgage which is not in any arreas

 

 

but a secured loan which is in arreas by £650.00.

 

 

The loan amount is £34,000.

 

 

I have called Picture and advised them I can no longer afford the £300 a month payments

and they said if I don't pay they will obtain an attachment of earnings from my employer and force me to pay that way.

 

 

Are they allowed to do this?

 

 

I have been paying what I can afford which is around £150 per month

but they said that is only temporary and will require me to pay the full amount in the next few months.

 

 

My mortgage is £105,000 and is worth around £110,000 so repossessing my home will not gain them much.

I can't go bankrupt so I am not sure what is best to do.

 

 

 

 

Any advice would be much appreciated.

[Cadbury1879]

Hi Sirbob,

as no one else has replied, I wil give my opinion.

sure others will be along.

Even though it's a secured loan your creditor will not be able to obtain enforcement of the debt without going through the courts.

Attachment of earnings can only be applied after non compliance of a court order.ie non payment of a ccj,or through magistrates court council tax.

Keep paying what you can afford, they have a 2nd charge on your property so IMO, given the equity,they will accept your proposals

 

All the very Best

Cadbury

[bluedogx]

It's interesting that they threatened an attachment if earnings. Are you sure it's secured?

 

They would normally threaten to repossess

 

B

[sirbob10]

Hi

 

Yes it is a secured loan. I assume they are thinking the same as me - no point in repossessing as no equity in the property and as it was a 125% LTV there is never going to be any equity in the property. My house would need to be worth at least £140,000 and that ain't going to happen.

[bluedogx]

Have you asked for interest only ? Looked into mortgage support schemes?

 

B

[sirbob10]

Hi. Do you mean interest only on the loan. I did ask a question about that but she said that was not a possibility. I did ask them to freeze the interest and all my payments to made to the actual £34,000 loan but all she said was that she would send me out and income and expenditure form for me to complete.

[bluedogx]

I can't see them freezing interest but sending an income / expenditure would help. You need to ask why they won't allow interest only for a while.

 

Also shelter web site for homeowner support schemes.

[sirbob10]

Hi

 

I'm looking for a bit of advice.

 

In 2007 we took out a secured loan with Picture, very foolish but they told us they wouldn't allow us to move house unless we borrowed more.

 

All was fine until 2010 when we found ourselves struggling. They rang us every month and instead of paying £300 we offered £50 per month. Every month the same guy called us to check our circumstances hand't changed. In July last year we received an income/expenditure form which we completed and enclosed all the documents they wanted, my payslips, husbands ESA letter, CB and CTC. A few weeks later they sent them back and thats the last we have heard. No letters, no phonecalls, nothing.

 

Is this normal? I don't know whether to ring them or just wait for them to get in touch with me. I am still paying the £50 a month agreed.

 

Many Thanks

Joanne

[sirbob10]

Hi

 

Some advise would be appreciated.

 

We live in our home with an interest only mortgage of 105,000. No arreas on mortgage but we also have a secured loan with Picture for £34,000 and a charging order from Natwest for £28000. As it stands we are in arreas with Picture of £8000 and have only been paying £50 per month for the last 3 years.

 

I work part time and my husband is on ESA support group. He is due surgery soon to remove part of his adrenal gland and then heart surgery at a later date providing the adrenal gland operation works.

 

What I'm wanting to know is that when my husband has recovered we want to move back to the Midlands with our 3 daughters as my husband has a better chance of getting a job than the North East but we aren't sure what to do with the house.

 

Do we stop paying the mortgage, secured loan and charging order to save money for moving costs (we are just wanting to rent in the Midlands) and allow the house to be repossessed or do we try and sell the house which I don't think Picture would allow as they would receive none of their money as our house is only worth around £100,000, or do we just hand back the keys to the mortgage company.

 

We are not concerned about loosing our home as it hasn't brought us any happiness and with it being an old house something is always going wrong and we just can't afford the fixing costs.

 

We don't want to move just yet as its taken 5 years to get my husband to this stage of his treatment and don't want to muck up or delay anything.

 

Any advise would be most helpful.

[time4change2]

you still might be left with shortfall on the house though by that i mean if you give the keys back then the mortgage company will still want to get the money back for the house that they leant out.

 

my friend did the same thing a few year back she could not afford the house anyone more she owed £175.000 . she had 3 secured loans on it that totalled over £55.000 the mortgage provider sold the house at auction for the money that was owed and that left my friend with a debt still to pay of over £30.000 she had to go bankrupt though s she could not afford the rest of the short fall

 

it might be worth you going to the CAB and seeing what they can advice you on

[sirbob10]

Hi

 

Well here goes. Just over 6 years ago we lived in Staffordshire and when my father was diagnosed with cancer we spent every weekend travelling to the North East with our 3 young children.

 

As the travelling was getting to much we decided to put our house on the market and move closer to my parents.

 

The only problem was we had a Picture secured loan on our home. We filled in the paperwork to transfer the loan to our new home we had put an offer on. The request was denied as they said the figures didn't add up.

 

Anyhow I received a loan from Picture as when they told me over the phone the transfer would be denied I was very upset and crying so I terminated the call. The guy told me there was a way to get the request accepted. He gave me details of a company who done fake payslips.

 

The plan was for me to start working for my parents business part-time while my dad was having treatment. He told me to get 2 fake payslips from this company as all they wanted was 2 and this would give me the extra income to transfer the loan. I queried this with him as the other payslips they were using for my income was for a company I worked at in Staffordshire and I was actually moving to the North East. He said that they weren't bothered about that as a lot of companies have their payroll offices in a different part of the country from where their employees work.

 

Anyway as I was desperate to move back home I done it and got the fake payslips which were accepted and we moved home. Fast forward 6 years and of the course the obvious happened. We can't afford the full payment and have been paying a vastly reduced amount for over 3 years.

 

I have no idea what to do and the house we live in is in negative equity so if Picture repossess they won't get a penny.

 

I know I must have broken the law but I was desperate.

 

Do I tell Picture this or do I just let it lie as it was many years ago?

[sirbob10]

Hi

 

Just a quick question.

 

Does it matter who hold the deeds to our home?

 

I always thought the mortgage company had them until you paid off the mortgage but I have mine here at home.

 

Thanks for any advise.

[honeybee13]

Hello there.

 

Our lender also sent ours back before we had repaid the mortage. It's a while back now, I can't remember why they decided to do it.

 

My best, HB

[lookinforinfo]

The land Registry now holds all deeds electronically so there is no need for lenders to hold on to them.

[sirbob10]

Hi

 

Here goes. I'm just looking for some help as to what my best options are.

 

We bought our home for 105000 in Feb 07 and our secured loan from Picture was transferred which is for 34000.

 

A few years later due to husbands ill health and loss of job we got into problems with credit cards and the secured loan and a natwest loan.

 

We are currently paying pay plan £75 per month which covers around 8 credit cards/store cards/loans. Natwest got a charging order in 2011 for £28000.

 

Instead of paying £300 to picture I only pay £20 but our mortgage is upto date which is interest only and £240 per month.

 

My husband is on ESA support group and DLA and I work part time earring £10000 per year. We also have 3 daughters under 16.

 

Our home is falling apart and needs so much work doing to it that we just can't afford. Picture said they would block any attempt to sell the house.

 

Can somebody tell me what my options are. Do I hand back the keys to the mortgage company and find somewhere to rent? Our total debt is around £200000 including the mortgage and loans. I'd go bankrupt but don't think I could afford the fees.

 

If I hand back the keys and rent would anything secured become unsecured then I could just pay what I could afford without them threatening me or getting an attachment of earnings on my wages.

 

Any advice would be appreciated.

[sirbob10]

Hi

 

I'm looking for some advice.

 

We have a 105,000 mortgage, secured loan for £34000 and a charging order for £28000.

 

Our home is falling apart and due to only me working and my husband on ESA and DLA we can't afford to repair things so we are thinking of leaving our home and renting.

 

Can anyone tell me how long from me missing the first payment will it take for them to begin repossessing the house, or do I just move and hand back the keys.

 

I plan on coming to an arrangement to pay the outstanding debts if they will allow me but is there a chance they could get an attachment to my wages?

 

Many thanks

[time4change2]

it all depends on the mortgage company themselves and what there current policy and procedure is for it some can be as little as 3 missed payment some can be a lot more

 

If you can't pay your mortgage, you may want to leave and give your keys to your lender – this is called voluntary repossession. Your lender may suggest this if you are unlikely to be able to pay off what you owe.

 

http://england.shelter.org.uk/get_advice/money_problems/mortgage_arrears/handing_back_the_keys

[sirbob10]

Hi

 

We live in our mortgaged home but due to my husbands illness and living in an old house that needs a lot of work doing to it we have decided to move into a rented house and hand the keys to the mortgage company.

 

I'm fully aware of what will happen in regards to them selling the home at a reduced cost but at what point to I become not responsible for the house. Is it when I hand the keys back or do I have to wait for them to repossess the property?

 

Thanks for any advise.

[f16]

Would it not be better to try and sell the house yourself ?

[sirbob10]

Hi

 

I would but we have a secured Loan and a charging order both who refuse to let us sell and say they will block any attempt if we try.

[f16]

I'm no expert in this field (I'm a Builder).

That said from what I understand If there is a "Shortfall" they can still "Chase you"

 

Are there any late payment fees , charges or PPI you could claim back ??

 

I suspect the "Legal Crew" might need a bit more information. ....

[Bandit127]

You lose responsibility for the house when the repossession hearing is concluded. "Repossession" means they gain possession in law and responsibility for the property. Including the bills and upkeep.

 

You need to take reasonable care of the house in the meantime to make sure it does not deteriorate, make sure it is secure etc.

 

A lot of mortgage lenders will send you a form to sign if you hand the keys back. It is my opinion that signing this can deny you of some rights after sale and I would recommend that you do not sign it. It is very unlikely to speed things up or have any other benefit to you.

 

If there is a shortfall, they will give you a bill for it shortly after it sells.

 

My experience was with just the mortgage company. I don't know how it works with the secured loan and charging order as well.