Shortfall on repossessed property?

Jombe79

I recently had my property repossessed and was sold for less than I bought it in 2003 and after spending 15,000 on it. I had a survey in march 07 for £225,000. It sold in dec 07 for £145,000??? I have been sent a bill from Mortgage express for £84,000 - how the hell am i meant to pay this? They will not accept £50 per month. They want nearly the mortgage amount! What to do?

rog2

Jombe79 wrote: »

I recently had my property repossessed and was sold for less than I bought it in 2003 and after spending 15,000 on it. I had a survey in march 07 for £225,000. It sold in dec 07 for £145,000??? I have been sent a bill from Mortgage express for £84,000 - how the hell am i meant to pay this? They will not accept £50 per month. They want nearly the mortgage amount! What to do?

Hi Jombe - You would, probably, get more response if you started this as a thread in its own right. Mortgage 'shortfall', especially in the case of repossessions, can be a minefield.

Have a look at the National Debtline link, below, to see what they advise.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

You can, also, ring NDL on (freePhone) 0808 808 4000

fermi

rog2 wrote: »

Hi Jombe - You would, probably, get more response if you started this as a thread in its own right.

I've moved this to it's own thread.

rog2

fermi wrote: »

I've moved this to it's own thread.

Thanks fermi - I wondered where it had gone. :rolleyes:

peb

Ok -they may want the whole lot but if you don't have it they can't have it. Send them a payment plan based on what you have available.

The lender has a duty to try and get as much for the property as they can; do you think that they have failed that duty or have values come down? It is notoriously difficult to prove that a lender has been derelict in this duty (partly from what I remember from Uni and partly from what I know as a friend used to work in this area) - usually if it is in auction then this is classed as sufficient ,

NB I keep forgetting that I graduated in 2001 so of course things may have changed but I have not heard of any progression in case law.

CCCS_Sarah

As there is no longer a house for the debt to be secured against, effectively the loan is now unsecured so you can offer reduced payments towards it.

One thing you need to consider, if you are offering reduced payments, how long will it take you to pay off? If it’s going to be a long period of time then reduced payments might not be the best option.

I would suggest having an appointment so a counsellor can look at your whole situation. If you would like an appointment with the CCCS please call 0800 138 1111.

melt71

Firstly, don't panic. You've already lost your home, what is the worst that can happen now? Not a lot really eh?

Please visit this site http://www.home-repo.org/ and spend as many hours as you can spare reading through the information there. It is specific to home repos whereas debt agencies, although very useful for helping people in debt, are not.

There are certain 'rules' that you will now need to follow to avoid many pitfalls and I doubt that the agencies will know about them.

Do not engage in ANY telephone conversations with your lender or any written correspondence until you have read through this site. You can also post questions on there.

The first thing you need to do is to send your SARN letter details on the site.

If you would like more information, please PM me.

rog2

melt71 wrote: »

Please visit this site http://www.home-repo.org/ and spend as many hours as you can spare reading through the information there. It is specific to home repos whereas debt agencies, although very useful for helping people in debt, are not.

I have just had a look at the website, and, on first impressions, have to agree that it appears to be an excellent source of information.
It also has the 'accolade' of the Guardian website of the day - I have no idea if that is good or bad.
The only thing that I couldn't see is who is actually running it - I did notice that there is the option for giving donations, but perhaps you could tell me exactly who is running the site - I just need to be convinced that it is not a site for 'private gain' before I can, as I gladly will, reccomend it to others.

Thanks.