question category: CCJ

we want to sell out house but have a secured ccj on it what if it does not cover both?
Submitted on: 25th Jun 2009 by Non-Member | Total Answers: 1

we need to sell our house after 5 years but have a secured ccj on the house and dont think that we will get enough to pay both mordgage and the ccj solicetors and estate agents fees , do we have to pay the ccj first before house loan?

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Re: we want to sell out house but have a secured ccj on it ...

If you have a charging order on your house (a charging order is a ccj which has been secured on your house) it is usually settled out of the equity in the house when it is sold.

When you sell your house the mortgage is settled first, then if there are other "charges" they are settled in the order they were put on the house.

So in your case, your mortgage will be settled and as much of the charging order as possible. Any remaining debt will still exist but will be "unsecured".

Imagine you have a £100k house.

There is a £80k mortgage

a £15k secured loan taken out 5 years ago

and a £10k charging order made 2 years ago

You sell your house for £100k

The mortgage is settled first (-£80k)
The secured loan is settled next (-£15k)
£5k of the charging order is settled (-£5k)
£5k remains but is unsecured.

Hope I haven't made things more complicated with that example. If you need advice on CCJs click on my name and email me at Debt Advice Foundation

Submitted on: 26th Jun 2009 by Darren Member

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