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Re: Times: Homes at risk as banks seek more security for credit card debt Posted on: Sun, 23 Mar 2008 12:29:25 -0000

>> All the borrower has to do is keep to the terms the loan
>> was taken out on, IE keep his payments up to date.
>>>
>>>> If he breaks that contract, the contract is, well ...
>>>>
>>>> Broken.
>>>
>> "Lord Turkey Cough" wrote:
>>>Yes, but the good thiing is it was an unsecured
>>>loan, hence he paid higher interest than on
>>>a secured loan. If he breaks the contract
>>>he ends up with a bad credit rating, thats all.
>>
> "Derek Geldard" wrote
>> You don't imagine that the secured loan...
>
"Lord Turkey Cough" wrote
> Err we are talking about a unsecured loan here,
> where did this 'secured loan' come from?

Presumably, he means the secured loan that the
borrower would be offered, to pay off the unsecured
loan that the borrower has just defaulted on.

> "Derek Geldard" wrote
>> ... they *may* offer him
>
"Lord Turkey Cough" wrote
> No point in offering him one as he doesn't want one...

Then how would the borrower intend on paying off the
loan that he's just defaulted on, before the court makes
him bankrupt -- and the house (and other assets) are all
sold off to pay his creditors (including the unsecured loan) ?

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