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Can creditor force sale if charge put on property in shared ownership property

9 years ago - Posted by tad_admin

i am in a shared owner property with a housing association and have been issued a CCJ for £17k the original loan £15k they are now threatening to put charge on property which i own 45% my equity is only around £21k at the moment would they force a sale im currently not working and wonder if selling best option but would leave me with nothing as have othr debts of £23k I would be able to pay off CCJ with a settlement offer but not the £23k do I wait it out and let equity rise or cut loose

2 Answers

TAD Member

9 years ago

For a debt of that size, a charging order would be a common route for a creditor to follow. In theory they can then ask the court to force the sale of the house, but in practice it doesn’t make sense for them to do that – and a judge is unlikely to grant it anyway. A charging order still attracts interest, so it can make more sense for them to sit on the debt and wait for the eventual sale of the house.

As money gets tighter, and attitudes change there are anecdotes about more creditors trying to force through house sales.

There was a programme on the BBC about it.

http://www.bbc.co.uk/radio4/youandyours/items/01/2008_44_thu.shtml

TAD Member

9 years ago

I think you need to get some advice from one of the debt organisations listed on the site. There are a number of debt solutions available and you need to work out which is the best for you. For example, and IVA would deal with your CCJ and your home would be protected, although you may be required to release equity. You may be able to re-mortgage and clear all of your debts, however a CCJ will make raising credit more difficult and more expensive. Please get help ASAP.

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