Posting this again as apparently, the message expired for some reason.
Hi
Please can you advise me on the following.
On Wednesday, a district judge granted a possession order over my property for an outstanding mortgage of £120,000. I have 34 days to leave.
There are 4 months arrears owing to the first charge lender. (GE Money Home Lending.) The settlement figure includes the arrears and an early settlement penalty of £6000.
The property has a second charge secured on it in favour of a further lender (Progressive Finance.) where the outstanding balance is around £12,000. The payment history has been perfect and is up to date.
I have sold the property for £121,000 and am close to exchange of contracts. GE have agreed to cease action once exchange has occurred. The sale will cover the first charge mortgage - just !
I am not buying another property but moving into my mates for a bit to sort myself out.
What I am after is how to I get Progressive to remove the second charge and not pay off the loan ? I had a conversation with their local office, where I got a YTS Scheme drop-out who told me that all I needed to do was to get a Deed of Postponement and they would lift the charge. It turns out he never had the authority to tell me that and the branch manager has advised that my solicitor needs to write to them explaining why they want a deed of postponement.
My solicitor tells me today that a Deed of Postponement only applies if I am buying somewhere else, as it is designed to transfer the charge to another property !
My thoughts are:
- If Progressive don't lift the charge and convert it into an unsecured loan then they will not benefit as there will no longer be a property to charge - i.e. the ownership will pass to GE and they will sell it to reclaim their money and I would carry on paying Progressive anyway.
- GE are obviously wanting me to sell the property because they will get all their loan back otherwise they will sell it at below market value and have to wait for me to pay back the shortfall.
How do I convince Progressive that it's in their best interests too ? I don't want to exchange until I am sure that the 2nd charge will be removed on completion otherwise I will be stuck compensating that other side and I have been trying to sell for 18 months in order to relieve myself from the debt trap after unexpected redundancy.
Thanks for the advice in advance.
Kind Regards
Jamie
PS Have tried to re-finance the loan to progressive - I am not getting anywhere fast with that one due to credit history.