Selling prior to repossession, and after?greenspun.com : LUSENET : Repossession : One Thread
Having split amicably with my wife, who has now been rehoused, we have decided to sell the house. Unfortunately, we have a loan secured on the property for £13,500 with I-Group, and due to variuos problems we fell behind with this by three payments, about £750.00. they are taking us to a hearing asking for a reposession order. My question is - are we legally entitled to sell the home and (pay them off) a) before the repo order hearing, and b) after the repo (which they say they will continue with even if we pay the arears before the hearing date) Also, do we have to legally tell them we are putting the house up for sale?
Many thanks in advance...
-- Glynn (firstname.lastname@example.org), March 20, 2003
Unless you have an unusual clause in the agreement there's no way that they can get a repo order without the loan being in default. Even with an agreement I'd be amazed if a judge ordered the repo. If you get a court date you must attend and get legal advice. It's advisable to pay the arrears as soon as possible to avoid extra charges.
You dont have to tell them that you are selling the property.
-- Sue (email@example.com), March 20, 2003.
The lender or a 2nd charge cant prevent you from selling the property prior to the hearing. But they can afterwards simply becuase they will own the house and it wont be yours to sell.
The judge is only likely to consent to the order if:
A) you dont turn up B) you show no intention to pay.
Fist things first..
If your going to sell the property get it up for sale before the hearing and take a marketing pack to the court to prove it. This will sway the judge immediately to giving you some time to see if you can sell the property.
secondly make sure you go to court with a payment proposal showing your willingness to meet the debt under you current financial constraints.
Both of these will prevent an order for possession being given. Is it definately just the loan secured on the property you are defaulting with or is your mortgage in arrears? If it is you need to make some sort of proposal to repay your lender as well.
All you need to fo given your comments is buy some time to get the property sold, the above should help.
You dont legally have to tell the I-group your selling the property but I would advise telling them and sending them a marketing pack for your property proving it. This will show a judge that your keeping in touch with the I-group.
-- Jim Devine (JD@anon.com), March 21, 2003.