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unusual Repossesion question.

If someone has lent someone else money on a private mortgage to buy a house and keeps a charge on it for that amount, and they dont pay it off what are the options?

Can they reposes but not own it themselves but if they have another buyer in mind the repossed property goes to them instead?
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Comments

  • Not sure that I understand the question! Do you mean if there is a second charge on the property?
    My home is usually the House Buying, Renting and Selling Forum where I can be found trying to (sometimes unsucessfully) prove that not all Estate Agents are crooks. With 20 years experience of Sales/Lettings and having bought and sold many of my own properties I've usually got something to say ;)
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  • RDB
    RDB Posts: 872 Forumite
    No only one charge, the lender doesnt want to take the property back, just wants his money back. He has a buyer with the cash ready.

    But how to get the first buyers out who havent got the money to pay even the interest on what they owe? They have been in negative equity ever since the crash started.
  • I'm sorry but more info is needed. In what circumstances what they property bought? Who lives in the property and what amount of mortgage is outstanding? Who is this "lender" and in what circumstances did he lend the money? What arrangements were made for paying the money back.
    My home is usually the House Buying, Renting and Selling Forum where I can be found trying to (sometimes unsucessfully) prove that not all Estate Agents are crooks. With 20 years experience of Sales/Lettings and having bought and sold many of my own properties I've usually got something to say ;)
    Ignore......check!
  • RDB
    RDB Posts: 872 Forumite
    edited 22 November 2009 at 12:39PM
    About half the outstanding has been paid back, but no payments for a long time and with compound interest its getting impossible for them to ever catch up. the couple just cant afford the repayments any more and have been trying to sell but very hard in this climate.

    They admit they just cant catch up and know that repossession is the only way out.

    The problem is the original owner doesnt want the house back he just wants the money.

    There is someone with the cash ready to buy but the occupants just wont accept his low offer and he wont go any higher.

    Can the original lender repossess and sell to this new buyer, then chase the original couple for the rest of the outstanding?

    Any specialist companies for these situations?
  • Lender takes the case to court, for repo, unless owners will voluntarily surrender the property
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  • RDB
    RDB Posts: 872 Forumite
    Lender takes the case to court, for repo, unless owners will voluntarily surrender the property

    Thats the point. No one wants to go to court. Owners will voluntarily surrender the property.

    The point is the lender doesnt want the house he wants the money.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    AIUI, if a lender repossesses a property they have to be able to show that they sold it for the most they could achieve. Normally that would mean instructing an Estate Agent and not taking the property off the market once an offer was accepted or having an auction of some sort.

    Clearly if the person repossessing a property sells it to 'some bloke' there is a potential for corruption.
  • silvercar
    silvercar Posts: 48,626 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    The lender can't repossess for money in one step. He can repossess the property (voluntarily if the occupants=owners agree) and then he can sell it. He will need to account to the former owners for the money released by the sale; depending how honest and moral he is - knowing that the former owners are unlikely have the funds to sue him.
    I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • RDB
    RDB Posts: 872 Forumite
    interesting thanks.

    Would any solicitor be able to do this or does it have to be a specialist?
  • "Any solicitor" can do loads of things,,, question is, will he get it right (In my experience not usually...)

    Cheers!

    Lodger
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