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12/07/2012 7:47 pm
We have a secured loan which is absolutely crippling us. It's caused no end of stress and tension and is causing an enormous amount of problems between us. I've tried without success, as has my lawyer, to request that Picture Loans revert this to unsecured. They have agreed that if we sell the house they won't object and release their charge on the property, in other words drive us out onto the street and we'll make it unsecured. Back when we took this, 5 years ago, they valued our property at £15000 above it's purchase price (more or less saying it jumped that much in about 18 months!). It's on the market just now for £69000, and there wasn't a chance it was worth anything like what they had it valued at. Between that and our mortgage, it took our debt then to around £125000. Now, our monthly payment of £404 contains £370 of interest, just £34 goes towards the loan. I know it cannot be included in a Trust Deed but we are desperately trying to find a way to either make this unsecured or have it declared wrongly sold. We weren't aware of other options open to us, nor were we advised of any by Picture who were so nice (of course) when it came to giving us the loan - then difficult to deal with afterwards. Is there anything at all we can do, anything?
12/07/2012 9:20 pm
Hi Rickster
I'm not sure if we can help on this one as it will be an action between yourselves and Picture Loans.
I think it's extremely unlikely that they will convert this to an unsecured loan without legal action which I suspect would be expensive and, in my opinion, will have little chance of success.
In terms of a trust deed etc, you would have the option of walking away from the property or selling it. Any unsecured balance would then be a claim.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
13/07/2012 9:33 am
Welcome to the forum Rickster.
I'm not aware of anything that you can do I'm afraid. It would appear that both you and Picture voluntarily entered into an agreement. Picture would almost certainly not have lent this money to you without it being secured on your home, so I cannot see any commercial reason why they would now wish to step back from that position. I'm not legally trained though, so by all means seek further legal opinion if you want to see if your agreement can be challenged in any way.
It seems as though the amount owed on your property (mortgage plus secured loan) is considerably higher than the value of the property?
It seems also that you may be struggling to service the mortgage and secured loan payment to remain in that property?
If both are so, is it worth considering leaving the property and renting a home? I do appreciate that what makes financial sense might not make emotional sense, and that both are very important and cannot be taken in isolation.
If you
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