When You Sell Your House Does Your Equity Have To Pay Secured Loans?
The simple answer to the question; When you sell your house does your equity have to pay off secured loans? is YES!
A secured loan is a second charge on your property or home.
The first charge is the mortgage you have on the property and so when you sell the house, the mortgage gets paid off first and the second charge is paid of next.
Both the first and second charges are registered by the requisite lenders of the mortgage and loan at the Land Registry office.
Problems occurred for people in the late eighties and early nineties when ‘negative equity’ resulted in people defaulting on their secured loan and or mortgage.
Negative equity occurs when your mortgage becomes greater than the value of your home or property.
Individuals were subsequently forced to sell the property, following threats of repossession by the mortgage provider when significant mortgage payments had been missed. These problems are beginning to resurface as the ‘credit crunch’ bites and house prices tumble.
However there could be light at the end of the tunnel for many people with mortgages and secured loans:
For obvious reasons it’s not well known that many have been missold mortgages or had irregular charges made on their Mortgage or secured loan account and some have been party to secret commissions payments on mortgages and secured loans being made to third parties such as mortgage broker and financial advisors.
All of this means that many people unbeknown to them, could be entitled to compensation. Just call The Bad Credit Mortgage Centre today for further information, as to whether you could be entitled to make a claim….
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