Posted on 10 March 2011 by adrian
Im thinking of getting a secured loan on my property, if I borrow 10k and get behind on payments, can they repossese the house for this amount or will they obtain a charging order?
A charging order is only used for unsecured loans and basically turns them into a secured loan. There would be no benefit to the Lender in obtaining a charging order on a secured loan because if you fall behind you cannot sell the property and take the proceeds without first repaying your debt.
If you fall behind on a secured loan a Lender can apply to the courts for possession and your home is at risk.
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