second charge lender not chasing?

[dellboy99]

Hi there i am new here but have a possibly unique situation.

 

i lost my job and fell into arrears with main mortgage and second mortgage.

 

the first mortgage company have been great and most helpful i am back on track with a suspended money order and paying away.

 

The second loan company are horrible and it took some strongly worded letters to stop them phoning me on the hour every hour. they have not chased me for money for about a year??

 

i have offered them a token payment recently and heard nothing back, i find it strange that a company who threatened to repossess over a year ago have done nothing since.

 

i also have a case with the FCfs for PPI which should also reduce this debt.

 

i am not trying to avoid the debt, but do not want to lose the house. why have they not enforced? it makes me think they do not have a charge on the house

 

any advice appreciated

[dellboy99]

anyone? have i posted in the wrong section?

[Killerschick]

Hi Dellboy,

 

There are some second charge lenders out there who have an unpublicised policy of withholding action if there is no equity in the property as they would stand to lose not only the original loan, but also the costs spent on enforcement.

 

They will make a big fuss when you first fall into arrears as they want to try and keep you paying but the letters they send are generally standard and they often operate diallers to make large volumes of calls. If you get further into arrears and clearly don't have the money as you haven't responded to their threats with payments then they will probably undertake an assessment of whether there is any equity and it is worth bringing proceedings. Possibly in your case they have gone through this sort of process and come to the conclusion there is no equity so they sitting back hoping for an increase in house prices.

 

Beware that they may come knocking when there is equity in the future.

 

If you have got equity now then I am at a loss to explain their behaviour!

 

KC

[Happyhippy1959]

Yes, that is quite correct. It makes no sense for them to repossess if you have nothing to give. They will sit back and add charges and interest and penalties and hope that your property will increase. So yes BEWARE, once they know it is worth pursuing you will hear from them.