Hi all

Do need a little help here....

Am being taken to court by the lender, have done all as this site states.

My mortgage ended with 3 accounts

the first is the orginal mortgage amount

the other 2 were for Home Inprovement Loans and one has a credit agreement with it.

Can any one tell me do all 3 make up the mortgage or are the other two (home inprovement loans) classed as personal loans secured against the house, so do not fall under the mortgage shortfall but should be classed as loan defaults??????????????????

Have had to use a different email address as this is now going through the courts and as you know they do look at this site

Regards Gaz

-- Gaz (done2437@hotmail.com), March 09, 2004

Answers

Hiya Gaz,

Are your other loans from your mortgagae company or with some other lender? We are going through a similar thing, the loan company is trying to get a repo order on us, but they are not the mortgage company. Don't know much about these things, but i should imagine if your home improvement loans are with a different company, then they will be classed as something seperate, i shouldn't imagine that the courts will "add on" your loans if they are from somewhere else, as they are a totally different thing. Maybe someone else with a bit more knowledge may be able to help you, but this is how i would see it from a personal piont of view if it was me. hope this helps in some way, best of luck, Jane.

-- jane (janey1@emailaccount.com), March 09, 2004.

Hi

They are all with the same company, but one has a credit agreement with it....

Regards Gaz

-- Gaz (done2437@hotmail.com), March 10, 2004.

As I understand it (though no personal experience of this), if the property is repossessed, all loans secured against it will 'queue up' to get their slice of the pie when the house is sold. The original mortgage is the 'first charge', and any subsequent loans are the 'second charge', 'third charge' etc. The amount raised by the house sale goes first to pay the first charge, then if there's anything left over, the second charge takes their money, and so on. If there's a shortfall, and the house doesn't even make enough to cover the first charge (the mortgage), you will end up being chased by all three lenders. If it makes enough for the mortgage but nothing extra, you'll be chased by the two home improvement loan companies, and so on. As far as the limitation period goes, I think the 12 year limit applies to all debts secured on property, I'm afraid. Again, this isn't my 'specialist subject', so perhaps someone else can add something illuminating?

-- Melody (melody_clarke@yahoo.co.uk), March 11, 2004.