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i have unsecure debt , can the banks take my houses away.

Posted on: 04th Feb, 2009 08:55 am
hi i have unsecure debt in the region of 50 grand, on credit cards and loans, ive not missed one payment yet but im finding it hard. i have 5 houses which have been rented out, sometimes with voids periods. with house price falls im getting worried. all the mortgages are being paid on time. so can the banks take my houses away?
Hi hpurewal,

If you default on your payments, then the bank will foreclose the property and sell them in order to recover the dues. But as you are still current on your payments, you should not worry about that.

Thanks.
Posted on: 13th Feb, 2009 12:57 am
if i understand properly (and i believe i do), all the debt you're talking about is personal debt, not secured by any collateral. the only way in which a creditor would seek your collateral to repay debt is if you default on payments. the creditor(s) would then, presumably, sue you to recover the debt owed. assuming that suit is successful, the creditor will receive a judgment against you, which orders you to repay the debt. should you fail to pay in accordance with that judgment, the creditor can then obtain a lien on property you own. in that event (a long process), you could end up losing a property due to unpaid, unsecured debts.

long before this happens, you're probably going to have ample time to pay the debts you're describing, though. i'd not worry about losing property at this time, based on what you've said.
Posted on: 16th Feb, 2009 07:15 am
As long as ur current on ur payments they cannot do nothing as of yet. So no worries :)
Posted on: 23rd Feb, 2009 03:05 pm
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