I have arrears on an unsecured loan, i have accepted an offer for my property and advsied the loan company that I will not be able to make monthly payments till sold. they are now saying that they can stop the sale. is this correct
2006-12-06 01:54:43 · 7 answers · asked by russell b 1 in Business & Finance ➔ Personal Finance
They can not stop the sale because it is unsecured ....
What they could do is apply to a court to have a charge put on the house which means when it is sold your solicitor has to send them the amount that is outstanding for the loan.....
That will take time and as you have said u are gonna pay em I don't know what they are moaning about
2006-12-06 01:58:07 · answer #1 · answered by xXx Orange Breezer xXx 5 · 0⤊ 0⤋
Hello,
Unfortunately I think the loan company are correct here!!
Why? because when you took out the unsecured loan you probably entered into a legally binding consumer credit agreement. (you need to read/see the small print for the load agreement if you can).
My guess is that you've probably agreed with the loan company to pay back the credit over a specific duration of time, and now you have missed payments they are likely to see you as a much higher level of risk (you havent kept the original agreement you signed up to).
**NOTE: even when you take out an unsecured loan, the loan company will try to estimate or calculate the level of risk. Of you defaulting (failing) to repay the loan. Property ownership is normally one factor used to calculate the risk levels but this is usually on secured loans. But I think this can also be applied to unsecured loans too in the last resort.
If push comes to shove then the loan company can stop the property sale going through until you've paid them off or paid back the outstanding amounts.
**You might want to check this out with a solicitor or CAB but I think this is correct.
IR
2006-12-06 02:45:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Not that I'm aware of. The loan is not secured on your property, so isn't affected by it. The worst they can do is to try to force a CCJ on you, but in fairness you are making every effort to honour the loan. It may be worthwile offering them a small payment per week say £10. This shows good intent on your part and they are under alot of pressure to accept this as you have made an offer to them. It wouldn't look good if they did take you to court.
If you are selling to pay off credit, have you ever considered remortgaging instead of selling. That way you get to keep your home.
Good luck with it.
2006-12-06 02:13:09 · answer #3 · answered by voodoobluesman 5 · 0⤊ 0⤋
The loan company will still expect payments to be made regardless of whether a property is sold or not.
2006-12-06 02:07:36 · answer #4 · answered by doreronsoton 2 · 0⤊ 0⤋
They do not have the right to stop the sale as the loan is not secured to the property my advice is contact your estate agent and let them deal with it for you
2006-12-06 02:36:03 · answer #5 · answered by steven.sant@btinternet.com 1 · 0⤊ 0⤋
They cannot stop you, but no need to invite trouble.. Say nothing more to them, go ahead and complete the sale and start paying them later including any arrears.
2006-12-06 12:56:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes it is.
2006-12-06 01:56:14 · answer #7 · answered by angel 4 · 0⤊ 1⤋