hi everyone new member in some serious need of advise please

[madglyn34]

i lost my job through havin cancer 2 years ago so i got in trouble with my mortgage they tried doin mortgage rescue scheme but that fell through so my mortgage company decided to do an asissted sale the house has been sold just waitin for all the paperwork to go through i have a shortfall of about £7000 but im more worried about the secured loan i have on the house with welcome i havent told them about the sale as i thought mortgage company would so i dont no if they no and theres no money for them as i owe them about £19000 im really worried as im still tryin to fight my illness ive lost my home and job and i dont no if im in big trouble over all this please help

[enaid]

Re: hi everyone new member in some serious need of advise please

Hi madglyn and welcome to Legal Beagles.
Your loan with Welcome do you still have all the paperwork ?
Do you know if you had PPI on the loan and if so did you make a claim on it whilst you were ill?

[madglyn34]

Re: hi everyone new member in some serious need of advise please

Hi enaid i was payin ppi but unfortunately my ex partner advised me to cancel it as it was nearly £90 a month so i couldnt claim when i became ill

[enaid]

Re: hi everyone new member in some serious need of advise please

I thought it would have been an upfront policy by that I mean the total amount of the policy added to your loan at the beginning.

[madglyn34]

Re: hi everyone new member in some serious need of advise please

I thought it would have been an upfront policy by that I mean the total amount of the policy added to your loan at the beginning.

No they were taking it along with my repayments each month which was why i cancelled it as it was alot of money each month and as the loan was over several years i would of paid an huge amount of ppi

[di30]

Re: hi everyone new member in some serious need of advise please

I believe your still able to make a reclaim on the PPI you did pay until you cancelled it. Do you know how long you were paying the PPI?
And when it was cancelled how did they work out the monthly payments on the loan, as the ppi would have been added within the loan as one monthly repayment.

Did they just adjust the loan without the ppi amount?

[madglyn34]

Re: hi everyone new member in some serious need of advise please

I was paying the ppi for about 3 years before i cancelled it and as far as i can remember i just had to put in writting i wanted it stopped thet then told me my repayments wouldnt change but they would just take it off the loan but i got no papetwork to confirm any of this but its not the ppi im worried about its the fact i have sold my house and not told them about it

[wales01man]

Re: hi everyone new member in some serious need of advise please

Has the sale Completed and the Solicitor distributed all the funds?

[madglyn34]

Re: hi everyone new member in some serious need of advise please

Has the sale Completed and the Solicitor distributed all the funds?

The sale hasnt been completed yet and no funds distributed but if i say now im scared welcome will block the sale and i will get into trouble for not telling them the whole situation has me totally stressed out im really confused

[wales01man]

Re: hi everyone new member in some serious need of advise please

I am no expert but second charge holders will get nothing if there is nothing left after first charge holder gets paid this happened in our case now we have no assets seems the second charge holder has not bothered us

[madglyn34]

Re: hi everyone new member in some serious need of advise please

I am no expert but second charge holders will get nothing if there is nothing left after first charge holder gets paid this happened in our case now we have no assets seems the second charge holder has not bothered us

Yes but did you tell the second charge holder you were selling the property this is the part that worries me cause its half way through if i tell them they might try to block it but if i dont tell them then will i be in big trouble

[wales01man]

Re: hi everyone new member in some serious need of advise please

I told them 4 days before we were being evicted that was the day before the got a charge on the property they ignored me never told them after when it was sold and there was nothing for them they knew then!

[madglyn34]

Re: hi everyone new member in some serious need of advise please

Oh right and they have never tried to find u or get their money back but u say u were evicted so would it be different for mine if it was an assisted sale cause there is still a shortfall so theres no money at all

[madglyn34]

Re: hi everyone new member in some serious need of advise please

I told them 4 days before we were being evicted that was the day before the got a charge on the property they ignored me never told them after when it was sold and there was nothing for them they knew then!

Sorry i also meant to ask if it was welcome u had ur second charge with thank you

[Tools]

Re: hi everyone new member in some serious need of advise please

From the Land Registry, not sure if this is current, please check with the Land Registry

Source www.parliament.uk/briefing-papers/SN04837.pdf

6
What happens to the charges in the event of repossession?
6.1
Costs involved
On default of mortgage repayments and by court order, the lender can repossess the property. After the lender takes the property into possession they have a legal duty to sell the property for the best price that can reasonably be obtained. All costs (for example, estate agents’ costs and legal fees) will be charged to the debtor’s mortgage account.
From the proceeds of sale, the lender and any other secured lender will be repaid together with costs. If the sale of the property results in a surplus of funds, then the surplus is paid to the debtor. If the sale proceeds are not enough to pay off the money owed to the lender, then there is a ‘shortfall debt’ which the debtor will still owe his lender. Interest will usually continue to be charged on the mortgage loan until the property is sold and any shortfall is repaid.
6.2
Shortfall debt
As soon as possible after the sale of the repossessed property, the lender is required to notify the debtor of any shortfall debt. If interest is being charged on the shortfall debt, the lender is required to send the debtor regular written financial statements on how much is owed.
The action the lender takes on the shortfall debt will depend on the circumstances. There are a number of options, including:
•
seeking repayment of the shortfall debt by coming to terms with the debtor;
•
writing-off the shortfall debt; or
•
assigning the shortfall debt to another company
In England, Wales and Northern Ireland, a lender legally has 12 years in which to contact the debtor to begin the process of seeking repayment of a shortfall debt; this period is usually 5 4
years in Scotland.4 However, in 2000 the industry voluntarily agreed that where the borrower has a shortfall debt following possession lenders will only begin recovery action within 6 years of the sale of the property. The Council of Mortgage Lenders (CML) has stated the industry’s commitment to treat debtors sympathetically:
[…] lenders are committed to fair and sympathetic treatment of people who have suffered repossession, and accept that individuals should not face long delays before being contacted to discuss repaying the shortfall. Most lenders will contact you [the debtor] fairly soon after repossession to try to agree to a manageable arrangement for repaying all or some of the debt.
Lenders who are members of the Council of Mortgage Lenders voluntarily agreed from 11 February 2000 to begin all recovery action for a shortfall within six years of the sale of a repossessed property. If your [i.e. the debtor’s] property was taken into possession and sold more than six years ago, and you have not been contacted by your lender to recover any outstanding debt, you will not now be asked to pay the shortfall. In Scotland, lenders will begin recovery action within five years.5
However, the 6 year limit only refers to beginning recovery action and does not affect a lender’s ability to recover the shortfall debt over a longer period. It should also noted that the 6 years time limit will not apply to a case where the debtor is already abiding by alternative payment arrangements for the shortfall debt or if there is evidence of mortgage fraud.