Unsecured Loan Advice?
A friend of mine has an unsecured loan, but has unfortunatly lost his job. As soon as he was made redundant he contacted the bank, and explained the situation, offering a reduced payment until he found another job. They turned down the offer, and have now threatend to force him into selling his house to recover the debt. In my own mind i can't see that they can do this, as the loan was unsecured (or personal), and has no calim to his property. He does have a mortgage, and has kept up payments to them (either in full or over a couple of months 1/2 payments) as they are the priority, and they are happy with the situation. Surely the mortgage company are the only ones who can force my friend to sell the house, or reclaim the house to cover the debt. Any advice on what the loan company can do as far as his house is concerned would be appreciated.
Answers:
Get him to check the small print on his original contract. There may be some reference to the loan being secured on the property, but they would have had to take mortgage/equity details at the outset to do this. If no reference to secured, then they cannot force him to sell the property. Get himself along to Citizens Advice Bureau - its free.
They cannot take the house or make him sell it on a unsecured loan !! As for not accepting the reduced payment,,,,,,tell him to try and do this through the money advisors at the citizens advice .they normally have better success at these things !! They helped me !
maybe he has unemployment insurance on loan, worth asking
The loan company want their money-- which was agreed at the time you were accepted. If the loan was unsecured they cannot by law take your home however, if the worst happens and you do not find income they can make you bankrupt meaning the appointed receiver will take your valuable assets(be it your home) in which to pay your creditor.
I'm not being funny but the sooner you get yourself a job and catch up with the payments the sooner you can get them off your case.
If you took ppp(payment protection) your mortgage will be paid be it the interest or whatever was in the agreement until you find another job. If no ppp was taken i suggest a thorough check of the contract and a trip tp the cab.
Does your friend have any other loans with the bank that he has the unsecured loan with? Many banks these days cross-collateralize their loans. So if you have an unsecured loan and a mortgage at the same bank, the bank can go after your house for the "unsecured" loan. If your friend's loan is truly unsecured, than the bank can't go after his house.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found after
doing a google search :
http://umgarticles.atspace.com/debt-cons.
Most loan providers force you to take out loan insurance in case you lose your job. In case you lose you job the insurance pays out a certain amount for a set period or until you go back to work. Your friend must check all the paper work he signed. Accomodation is a basic human right your friend's house must be the last thing the loan providers should take. They must consider his offer cos i think it was made in fairness. Fight back. Goodluck to you two.
He might be better off talking to his mortgage company and borrowing a little extra on the house to pay off the loan.
The mortgage company will usually support a regular paying customer as its in their interest in continuing to receive a revenue from the property..
Good luck
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Answers:
Get him to check the small print on his original contract. There may be some reference to the loan being secured on the property, but they would have had to take mortgage/equity details at the outset to do this. If no reference to secured, then they cannot force him to sell the property. Get himself along to Citizens Advice Bureau - its free.
They cannot take the house or make him sell it on a unsecured loan !! As for not accepting the reduced payment,,,,,,tell him to try and do this through the money advisors at the citizens advice .they normally have better success at these things !! They helped me !
maybe he has unemployment insurance on loan, worth asking
The loan company want their money-- which was agreed at the time you were accepted. If the loan was unsecured they cannot by law take your home however, if the worst happens and you do not find income they can make you bankrupt meaning the appointed receiver will take your valuable assets(be it your home) in which to pay your creditor.
I'm not being funny but the sooner you get yourself a job and catch up with the payments the sooner you can get them off your case.
If you took ppp(payment protection) your mortgage will be paid be it the interest or whatever was in the agreement until you find another job. If no ppp was taken i suggest a thorough check of the contract and a trip tp the cab.
Does your friend have any other loans with the bank that he has the unsecured loan with? Many banks these days cross-collateralize their loans. So if you have an unsecured loan and a mortgage at the same bank, the bank can go after your house for the "unsecured" loan. If your friend's loan is truly unsecured, than the bank can't go after his house.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found after
doing a google search :
http://umgarticles.atspace.com/debt-cons.
Most loan providers force you to take out loan insurance in case you lose your job. In case you lose you job the insurance pays out a certain amount for a set period or until you go back to work. Your friend must check all the paper work he signed. Accomodation is a basic human right your friend's house must be the last thing the loan providers should take. They must consider his offer cos i think it was made in fairness. Fight back. Goodluck to you two.
He might be better off talking to his mortgage company and borrowing a little extra on the house to pay off the loan.
The mortgage company will usually support a regular paying customer as its in their interest in continuing to receive a revenue from the property..
Good luck
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