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Can a loan company change a secured loan to a personal loan?
Hi there! I desperately need advice please. Last year, my home was repossessed due to dealing with a rogue mortgage advisor. We had a suspended repossession order on the property already but needed a simple remortgage to gain control financially once more. Anyway, to cut a very long story short, the house was sold but there was a shortfall on the mortgage and not enough money to pay off any of the secured loan. We have recently recieved a claim form issued by court to claim back the monies plus costs etc from the loan company. Can they do this? I have been told by different people that they can't as the loan was secured on the property and it should have been the mortgage lender's responsibility to ensure that when the house was sold, there would be enough money in the pot to clear both the mortgage and secured loan. The house was sold for alot less than market value for "a quick sale" for want of a better phrase. This seems completely unfair and I don't know what to do. Any help, advice or to point me in the right direction would be very much appreciated. Thank you for taking the time to read this posting.

Hello,
Hope this helps