Repossessed House Sold For More Than I Owed

maximumme

A few years ago, my sister had her house repossessed. She owed £17,000 on the remaining mortgage. The house was sold for £34,000. She thinks she may be entitled to some of the profits of the sale after her debts were paid off. Could this be the case?

Doozergirl

If there was anything left over then yes, it's hers.

McKneff

Wow, nice to see a happy outcome after having your home repossessed which must have been heartbreaking but something good has come out of it in the end.

Running_Horse

I remember a newspaper story during the 80s boom about someone who bought a house, didn't make a single mortgage repayment, had the house repossessed and sold, and walked away with thousands of pounds in profit. Probably ruined their credit rating for years though.

Fire_Fox

maximumme wrote: »

A few years ago, my sister had her house repossessed. She owed £17,000 on the remaining mortgage. The house was sold for £34,000. She thinks she may be entitled to some of the profits of the sale after her debts were paid off. Could this be the case?

The bank charges for late and missed mortgage payments, all the legal work in repossessing the property, marketing and sales. This often runs into tens of thousands.

PasturesNew

She will h ave automatically received the money back at the time.

The size of the mortgage will have increased with every non-payment, fees added, interest added, fees to repossess, court fees, bailiff charges, plus interest, auction fees, more VAT, managing, handling, more missed payments ....

It can add up to a lot.

Worth checking though because if there was any left over she should have been given it. So there's always the chance there was some c0ckup at the time, maybe a cheque went astray or she moved or something.

barnaby-bear

PasturesNew wrote: »

She will h ave automatically received the money back at the time.

The size of the mortgage will have increased with every non-payment, fees added, interest added, fees to repossess, court fees, bailiff charges, plus interest, auction fees, more VAT, managing, handling, more missed payments ....

It can add up to a lot.

Worth checking though because if there was any left over she should have been given it. So there's always the chance there was some c0ckup at the time, maybe a cheque went astray or she moved or something.

and likewise if the fees, repossession costs, property security maintenance, estate agent fees had mounted up - she should know how much she stilled owed as she can be pursued for 12 years and making no payment could ruin credit history.... I can't believe penny fo penny the sale matched the money owed so the lack of final balance of what owed or due back to her is very odd...