• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Welcome Finance secured loan advice

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Welcome Finance secured loan advice

    Hi

    Please could somebody help...

    Where would you stand if you had a secured loan but your house got repossessed by the mortgage company? Are you still liable for the secured loan or can you tell them to do one seeing as you no longer have the house?

    Thanks
    Tags: None

  • #2
    Re: Welcome Finance secured loan advice

    If there is any equity left in the house after it's been repossessed (and the first mortgage paid off) then the second charge (i.e. secured loan) gets paid from the sale proceeds too. If there isn't enough money from the sale then both of the loan providors can chase you for the shortfall for up to 12 years through the county court. But they'll have to find you first . . .

    If you had a Mortgage Indemnity Insurance on the property (some lenders insist on this when you take out a high LTV loan) the insurance company will pay off the shortfall of the first mortgage and then the insurance company will chase you for the shortfall. This is why some lenders are so quick to repossess because they know they'll get their money from the insurance company more easily than getting it from the borrower :rant:

    Comment


    • #3
      Re: Welcome Finance secured loan advice

      I had a loan secured on property after a court order lost house no money for them never been chased for it anyway they wont get anything if they did.

      Comment


      • #4
        Re: Welcome Finance secured loan advice

        If the first mortgage or secured loan (which is a mortgage too) is with a mainstream lender who belongs to the Council of Mortgage Lenders then they're not supposed to chase you for the shortfall after six years even though the law gives them 12 years (this may be different in Scotland). A lot of lenders are happy to negotiate a seriously reduced Full & Final settlement as soon as possible after the repossession rather than spend 6 or 12 years keeping tabs on where you have moved so they can pounce at a later date. This fact sheet may help you:

        http://england.shelter.org.uk/get_ad...mortgage_debts

        Comment


        • #5
          Re: Welcome Finance secured loan advice

          You summed it up well with (not supposed to) But im sure some will remember its money their after as we read on this site when money comes into the equation supposed to,s dont count for much
          s

          Comment


          • #6
            Re: Welcome Finance secured loan advice

            There was no equity left in the house, £34500 shortfall after it was sold... I bought just in 2006, just before the market collapsed. I have not paid anything to welcome since 2009 but have been receiving the odd text message saying contact Mackenzie Hall quoting blah blah blah. A google search of them brought me to this forum. In November last year I was contacted by a firm called Enact who are chasing me for the shortfall on behalf of Santander. Rightly or wrongly I have agreed to pay back half of the shortfall at an amount that suits me per month.

            Comment


            • #7
              Re: Welcome Finance secured loan advice

              That's why I've become a serial complainer because there's usually a regulator in the background (FSA, CML, OFT etc) who can force lenders to behave or fine them big time. The Financial Ombudsman takes complaints about most mortgage lenders and loan providors too. There's always a big stick to beat them with somewhere :whip:

              Comment


              • #8
                Re: Welcome Finance secured loan advice

                Originally posted by ASL3212 View Post
                There was no equity left in the house, £34500 shortfall after it was sold... I bought just in 2006, just before the market collapsed. I have not paid anything to welcome since 2009 but have been receiving the odd text message saying contact Mackenzie Hall quoting blah blah blah. A google search of them brought me to this forum. In November last year I was contacted by a firm called Enact who are chasing me for the shortfall on behalf of Santander. Rightly or wrongly I have agreed to pay back half of the shortfall at an amount that suits me per month.
                What about the other half? Have they agreed to write it off in writing? If not, you may find yourself being chased for that at a later stage! out::faint2:

                Comment


                • #9
                  Re: Welcome Finance secured loan advice

                  Yes I have it in writing that they will accept 50% of the shortfall.

                  Comment


                  • #10
                    Re: Welcome Finance secured loan advice

                    Bad luck only 50% discount my wife was offered was 80% Discount

                    Comment


                    • #11
                      Re: Welcome Finance secured loan advice

                      80%?! Maybe I went in too high with my offer!!! Anyway after a few letters back and forth I told them the max I could afford was £100pm and basically said take it or leave it and they accepted.

                      What would people advise in regards to the texts I have been receiving, carry on ignoring them and wait to see if any letters arrive?

                      Comment


                      • #12
                        Re: Welcome Finance secured loan advice

                        Originally posted by ASL3212 View Post
                        There was no equity left in the house, £34500 shortfall after it was sold.... I have not paid anything to welcome since 2009 but have been receiving the odd text message saying contact Mackenzie Hall quoting blah blah blah. . . . . In November last year I was contacted by a firm called Enact who are chasing me for the shortfall on behalf of Santander.
                        So you've got the Santander (1st mortgage) shortfall debt under control with Enact as the DCA chasing you. This means Mackenzie Hall are probably chasing you for the Welcome (secured loan) debt which hasn't had any payments since 2009. It sounds as if Mackenzie Hall are sending you texts because they don't have an address for you to send letters. Long may that continue ray2:

                        If you do get a letter from Mackenzie Hall post on here before you reply in case there are any flaws in the original loan paperwork which you can work to your advantage. If it was me I'd ignore their texts and any phone calls and only deal in writing - which may never happen :dance:

                        Comment


                        • #13
                          Re: Welcome Finance secured loan advice

                          Thanks, I will do that. It's not like they are bombarding me with messages and I don't think they have ever rang (although I never answer my personal mobile to any number I don't know!!), just the random text once a month or so the latest being yesterday.

                          One last thing, Enact, has anyone had dealings with these before? The search didn't bring up many relevant posts.

                          Comment


                          • #14
                            Re: Welcome Finance secured loan advice

                            Originally posted by ASL3212 View Post
                            One last thing, Enact, has anyone had dealings with these before? The search didn't bring up many relevant posts.
                            Could it be Enact Solicitors based in Leeds who do a lot of work for mortgage lenders :confused2: It's just a guess because they may handle repossessions. Were they the solicitor for Santander in your possession proceedings?

                            http://www.enact.co.uk/services/2

                            Comment


                            • #15
                              Re: Welcome Finance secured loan advice

                              Originally posted by ASL3212 View Post
                              Yes I have it in writing that they will accept 50% of the shortfall.
                              Something has just occurred to me. That mortgage shortfall was a lot after the sale (was the 34k all due to Santander with the Welcome Finance debt on top?). Did they sell your house at auction at below the market value or did they sell it through an estate agent will full marketing to get the best possible price? I ask because the reason they may be so keen to take a 50% offer is because they know they were naughty. The FOS has made some lenders pay compensation to borrowers who were short-changed when they were repossessed:

                              http://www.financial-ombudsman.org.u...n-disputes.htm

                              When you've got time dig out the figures and see what went on. The lender should have sent you a financial statement once the property had been sold detailing all the associated costs too. These can often be unreasonable and excessive. If so this may give you a chance to renegotiate that 50% to something even better

                              Comment

                              View our Terms and Conditions

                              LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

                              If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


                              If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
                              Working...
                              X