question category: Banks

Can we be forced to sell our house by the Bank if we cannot pay our secured loan.
Submitted on: 8th Jul 2010 by Non-Member | Total Answers: 1

We took a loan for our Ltd Business it was secured on our home. Unfortunately our business went into liquidation and we are now being asked to repay an amount of £30000. Our home is in my Husbands name only but myself and my children also live here. I can make an offer to pay a minimum monthly amount but can they force us to sell our home to pay of the debt immediately.

Regards

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Re: Can we be forced to sell our house by the Bank if we ...

Ultimately yes, the creditor can force sale but they would need to take action through the court prior to possession. Before beginning this process the creditor will try to establish how much equity is in the property to determine whether they would receive the full £30,000 following the house sale once the mortgage was repaid. Making monthly repayments is often acceptable to creditors if they are contacted and an arrangement is agreed. This often means the creditor does not force sale as they are receiving repayments and are content with the security of knowing that if and when the house is sold in future they will receive the full amount owed to them.

This question has been answered by Christians Against Poverty, a leading debt charity offering hope and a solution to anyone in debt.

Submitted on: 26th Jul 2010 by TA Member

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