Can i 'unsecure' 2nd charge to allow sale of house?

[ajwliverpool]

Hi

 

My mortgage company is going for repossession. Its slipped onto a painful variable rate and due to a few mistakes, my credit rating is low and I have difficulties remortgaging. I have a secured loan also. I have suffered a drop in wages and cannot afford both.

 

Last attempt to remortgage, the valuation came back that I owed 95% of the value of my house. They then turned me down. Surveyors are so pessimistic at the moment, they downvalue everything. Why is that?

 

I don't want them to repossess, because i know auction halls are nearly empty, yet loads of repossessions. Local auction near me, everything was going for around 70% of its value, so I believe.

 

If this happens to me I'll be chased for a shortfall, a big shortfall....

 

I have agreed to 'sell and rent back' my house, and this company got a valuation, and argued with the surveyors to get the valuation up (above what my valuation was a month ago).

 

So my rent, which is fixed over a long period of time, and I have another contract guaranteeing me a long tenancy, is affordable and i can stay in the house.

 

The only thing is, secured loan is topping the sale.

 

I really need advice on how I can persuade them to 'desecure' the loan. I'll happily pay it as a personal loan, just with fees, admin charges etc can't goin on like this. I'll get repo'd and they ill get nothing. can they not see this? how can I get them to agree to unsecure the loan?

 

Help!

[Bona]

how much is the shortfall of the loan if you sell

[ajwliverpool]

12k loan, selling price agreed will only pay 2k of this, so really I would be asking them to unsecure 10k and pay them off the first 2k.

 

I think thats what you meant?

[zander]

I don't think you can "desecure". If a mortgage is in default, the lender can exercise its power of sale to recover the debt. The original lender takes what is legally due to it from the proceeds then passes the balance of the sale monies (if any) to the second lender, who takes what is due to it. When they are satisfied, the balance, if any, is passed to the borrower.

[ajwliverpool]

Zander, with respect, everything you wrote is common knowledge.

 

Also, 'i don't think' doesn't help me at all. The purpose of the post, or anyone else posting with a problem for that matter, is to get definitive yes/no answers, explanations, and an outline of the best way to proceed. Everything else is empty words not helpful to me or anyone else reading.

 

I was really quite specific in the detail... did you not read that if the lender doesn't allow the sale, I get repo'd, the house will cover the mortgage (if I am lucky), but highly unlikely to cover ANY of the 2nd charge debt?

 

Any specific advice would be very welcome...

 

(Zander, i don't mean to be sharp, so apologies in advance - just desperate for concrete, meaningful advice!)

[Bona]

We had a second charge and negotated a reduction as they would not get anything otherwise

[ajwliverpool]

How did you do that? through solicitor or letters or phonecalls? how much was the reduction? how easy was it, and how long did the process take?

 

Cheers Bona!