Missed loan and credit card payments could lose you your home
09/02/09
Many homeowners did not realise that if they miss payments on their personal loan or credit card, they could be at risk of loosing their home. A number of mortgage lenders are using homeowner’s unsecured loans and taking them to court in the attempt to get any money owed paid back to them.
Many people are unaware that mortgage lenders can do this, as previously it would only be your home that would be at risk if you were to fall behind on mortgage payments.
From Citizens advice, Moira Haynes commented, “There’s currently very little protection for householders on orders for sale. It relies on the judges’ discretion, with no hard and fast rules. So in theory people could end up on the street for very small debts. But, in reality, that will rarely happen.”
Moira continued, “We’d always advise people to deal with things as early as possible. If people are struggling with payments or even just think they may soon struggle, we’d advise them to get free independent advice now. Don’t put your head in the sand. Don’t ignore things they will only get worse.”
