From: Stephen@mailinator.com
Newsgroups: uk.finance
Subject: Re: Insufficient profit from selling property to pay off secured load...
Date: 4 Nov 2005 06:25:54 -0800
   posting-account=FMtZ4Q0AAADDBfHcW-oYqBCYtFeEmnBO


john boyle wrote:
> In message <1131011636.043378.256280@z14g2000cwz.googlegroups.com>,
> Stephen@mailinator.com writes
> >I think it's best as Richard said to talk with the lender.
> >If the property was over-valued and I sell I can't pay off my debt to
> >them from the profit from the sale so I would have to keep up payments
> >on unsecured terms.
> >If I don't sell I still have to maintain payments which would also
> >effectively be unsecured.
> >
> >If they don't allow me to sell in the hope that the market value goes
> >up it could take longer than the term of the loan so it's still a big
> >risk to them.
>
> Not necessarily. I assume the loan is a 'repayment' loan so the amount
> you owe them is decreasing and this has the effect of reducing their
> risk. So at the end of the loan they dont give a damn what the property
> value is.
> >
> >I feel the margin was too small for them to have given such a high
> >loan.  If the property had valued at double what I paid then fair
> >enough, they are almost guaranteed to get their money. But it was much
> >tighter than that!
> >
>
> No dont go and start blaming them! It was YOU who borrowed the money and
> YOU who agreed to give them the mortgage!
>
Not trying to wriggle out of it by blaming them.  I do intend to keep
up payments as I agreed in the loan contract.  I just think they want a
bigger margin of safety to protect their money.

> -- 
> John Boyle