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moneybunny
New Member



77 Posts

Posted - 21 May 2009 :  21:10:45  Show Profile
Hi we have a secured loan and we are in negative equity at the moment because of it. We were wanting to sell our house via national home buyers and move in to rented accomodation and I just wondered if we can do that, if we still owed money to the secured loan company or would we have to get permission off them?

Thanks Sam

Melanie Giles
Debt Diva Expert



555 Posts

Posted - 21 May 2009 :  23:33:13  Show Profile
You will need to get the permission of the secured loan company to sell I am afraid Sam, however I think these companies are getting more amenable to agreeing sales at the moment. Which particular company are you with?

Melanie Giles is a Licensed Insolvency Practitioner with over 23 years experience of helping people to budget more efficiently or resolving their financial difficulties. Melanie is a director of the IVA Advice Bureau, a leading provider of insolvency services with specific experience of voluntary arrangements, debt management and bankruptcy assistance.
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moneybunny
New Member



77 Posts

Posted - 22 May 2009 :  19:45:18  Show Profile
first plus but we are in negative equity.....although i do feel they over valued the house when we took the loan in
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Melanie Giles
Debt Diva Expert



555 Posts

Posted - 22 May 2009 :  22:58:05  Show Profile
Did you take out PPI when you took out the loan as well?

Melanie Giles is a Licensed Insolvency Practitioner with over 23 years experience of helping people to budget more efficiently or resolving their financial difficulties. Melanie is a director of the IVA Advice Bureau, a leading provider of insolvency services with specific experience of voluntary arrangements, debt management and bankruptcy assistance.
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Vanessa Phillips
Debt Diva Expert



464 Posts

Posted - 25 May 2009 :  15:09:03  Show Profile
Providing First Plus give authority for you to sell your house, the element of debt that is left will become an unsecured personal loan, and so you will have to negotiate with them as to how much you can afford to pay off on a monthly basis.

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moneybunny
New Member



77 Posts

Posted - 25 May 2009 :  19:48:38  Show Profile
thankfully we didnt take the PPi because we saw what a rip off it was! How does it work if we wnted to hand the house back to the bank?
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Melanie Giles
Debt Diva Expert



555 Posts

Posted - 27 May 2009 :  00:05:22  Show Profile
The first thing you should do is talk to your mortgage and secured loan companies to explain that you cannot afford the payments any more and wish to exercise a voluntary surrender.

If you are seriously thinking of doing this, it would be better to get your rental property in place before your credit rating becomes too adversely affected.

One the property has been surrendered, the mortgage company will arrange for it to be sold, and any shortfall will become an unsecured debt for which you will be liable to repay.

Melanie Giles is a Licensed Insolvency Practitioner with over 23 years experience of helping people to budget more efficiently or resolving their financial difficulties. Melanie is a director of the IVA Advice Bureau, a leading provider of insolvency services with specific experience of voluntary arrangements, debt management and bankruptcy assistance.
<a href="/contact_melanie_giles.php?phpMyAdmin=e9398005ef78596e39526ec2776b5f62&phpMyAdmin=852cd8f000e38864b980dc0039d48bf2"><img src="/images/signature_contact_me_melanie.gif" width="143" height="27" border="0"></a>
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Vanessa Phillips
Debt Diva Expert



464 Posts

Posted - 29 May 2009 :  09:33:14  Show Profile
Moneybunny,

After my bankruptcy, I found myself in a similar predicament. We tried for a year to sell our lovely house to no avail. We reduced it by over ??70k and still couldn't sell it. The building society were extremely good and allowed us to pay half payments for 12 months, and we also had a secured loan against the house, where again, Nemo were equally helpfull and allowed a substantially reduced payment. We have now decided to rent out the house, as the rent will more or less cover the entire original mortgage payment, the mortgage company are happy with this and have given consent to lease, Nemo don't have a problem with it, and we are now going to sit tight and wait for the property market to pick up again and try and sell it then - for what it is really worth. Meantime, Paul is moving into rented accomodation and can get on with his life. (the children and I moved out a year ago). So, there are solutions, not always as drastic as you first think, and lenders are far more realistic than they used to be.
Good luck.

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