I wondered if you might be able to help me understanding the court action and repossession timeline for an unregulated second charge bridging loan. The loan is for £83,000 with approx. £5,000 in arrears. My house went under offer a few weeks ago and is working towards quick exchange and completion. After paying my mortgage and the bridging loan remaining equity is more than £300,000. My lender is threatening legal action and obviously I want time to allow exchange and completion. What is likely timely on getting to court and then the judge issuing a repossession order? I understand with mortgage there would be a good chance the judge would grant a suspended order to allow me to stay in the house and finalise the sale. Likely to be different with a non-regulated loan? Any advice much appreciated.
EDIT the bridge loan agreement runs until early August. Having just recent correspondence again the letter talks about taking steps to recover the arrears. Wondering if this means that as the principal is not yet due they could not get a repossession order just for the arrears?
My mortgage provider has said that unless I reduce the arrears to less than 3 months by end of next week then they will instruct solicitors. My bridge provider has just sent me a letter saying they will consider taking steps to recover the arrears in the next week or so - still vague what they mean by this. My main concern is how quickly they would be able to obtain a possession order given the stage of my sale and that it is an unregulated loan.
Also of course given the principal is not due until early August although I have defaulted in terms of not paying interest.
That's great. Just to clarify this all applies even to unregulated loan? It sounds quite similar to a regulated loan. Any bid difference? Also one final thing in terms of defence I understand that if a regulated loan the fact that the house is on the market or under offer - ie that making an active effort to sell - could help in making a possession order suspended for a few months but is that also likely in the case of a unregulated loan?
I meant big rather than bid.
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