Northern Rock HAVE blocked sale of the house

kerrypn

Sorry to mither but can anyone help me at all please, I am in a right old state, and I might come across as a tough old bird, but Im not-I have no idea what to do now, Im worried sick

dollparts

Cash_Waster wrote: »

How much is the shortfall of the sale to the mortgage? Is it big enough for them to block, ie is it worth them doing?

For example, NR have repossed mine post BR and its worth £100,000 all day long.
The mortgage outstanding after they had wrote off the £30,000 unsecured part of £125,000 initial borrowing was at £95,000, so theoretically they should have got there money back. They took it on the 27th Oct, it was on the market a week later at offers above £78,000 which seems a random figure.It's highly likely it went to auction, hence the 'random'ness of the figure. It has sold and exchanged for £80,000 on the 20th November. And somebody has a team in there already doing it up. Where it will sell for £115,000 probably if they do it nicely.

They must have known that they needed a quick sale but have let it be sold for £20,000 lower than its retail value! Whether they have pressure and targets to remove bad debts I dont know, but I was shocked that they let it sell so low in the space of 7 days, that must have been their 1st offer.

Anyway, my point is, is there a huge shortfall that they just wont be able to get back? My shortfall will be around £20,000 after costs and they are obviously happy to wipe this away or they would not have let it go so quickly.Their model is based on the theory that an empty property equates to no money, therefore if it's not making money then it's not making sense. They would rather take the hit and surrender the shortfall to the big black hole joining all the other bad debt and getting the property off their radar.


NEVER sign nothing, but when I was looking at this, my understanding was that if you volountary reposses you can be liable for the shortfall, then go BR and whether you signed or not, that debt rolled into your BR estate? I may be wrong

I queried this today, am in a similar situation and they know I'm BR, and according to them I won't be liable whether the repo is voluntary, enforced or they allow the sale on the offer we have received over the weekend.


All in all it boils down to this: They will carefully consider any offer regardless of the prospective shortfall. What really counts is the mortgagees' ability to repay that shortfall based on an agreed undecured loan. They don't care about the prospect of making enough on the sale of the property because the mortgagee should (in theory) repay the difference. Once either/both goes BR it throws an almighty curve into the situation because they know that it significantly impedes the likelihood of them ever recovering the outstanding balance in full. Therefore they air towards the 'go for broke' avenue and do whatever they can to relieve themselves from the burden of the property.

Sounds illogical but in the grand schem of things 50k isn't a huge figure to them. If you consider that legally, they have to insure the property for buildings purposes and ensure that the property is secure and not being squatted in, vandalised etc etc.

They will end up paying a huge sum to meet all the criteria so are keen to just cut their losses.

kerrypn wrote: »

Northern Rock have now REFUSED to allow the sale to proceed, REFUSED to commence Repossession proceedings and are REFUSING to tell me what I can do to get them to co operate. I have spent 2 hours in the manchester branch today, I have spoken to Doxford department-nothing!!!!

refused to reposess based upon what? that sounds like utter rubbish to me, a scare tactic that is supposed to make you fold and repay the mortgage in one hit?

Don't let them flummox you Kerry, they are shutting down your options to see how far they can push.

In reality they can, will and above all have no choice but to take some form of action. They cannot refuse to commence repo proceedings, they would be in breach themselves of FSA regulations. If you, I or anyone else does not repay their mortgage they are putting their home at risk a la FSA regulations. You have read/heard the speech a million times I'm sure....IT APPLIES TO THEM TOO!!



I want to publicise how I am being treated, how the tax payer will now not only have to cough up for my mistakes, but that NR are doubling the cost to the tax payer. I feel bad enough having gone BR without this.

All help, advice and knowledge appreciated.

I want to name and shame Northern Rock[/QUOTE]

confused76

kerrypn wrote: »

Northern Rock have now REFUSED to allow the sale to proceed, REFUSED to commence Repossession proceedings and are REFUSING to tell me what I can do to get them to co operate. I have spent 2 hours in the manchester branch today, I have spoken to Doxford department-nothing!!!!

I want to publicise how I am being treated, how the tax payer will now not only have to cough up for my mistakes, but that NR are doubling the cost to the tax payer. I feel bad enough having gone BR without this.

All help, advice and knowledge appreciated.

I want to name and shame Northern Rock

that is shocking behaviour! what exactly do they expect you to do?
i'm sorry i have absolutely no knowledge of this, i really hope someone comes along very soon who can help you x

kerrypn

I am naturally furious about this, but flummoxed is the right word doll-what the H am I meant to do? I only have until feb with council tax exemption, I am worried sick. My DH has had to ask his mum for the BR fee and NR will not say if this will allow the sale to proceed or not :mad::mad::mad:

I caused a right scene in the manchester office but being 7 months pregnant, this episode has done me no good whatsover-especially as when they finally did phone me back, I ended up in a screaming match in the middle of the arndale centre

They just keep asking for what I haven't got-why will these people not listen??????Arrears stand at 9k-and still no repo!!!!!!

MicheH

I hate Northern Rock too. I hate I hate, strong words that I never use but I hate that company, their workers and the fact that they single handedly have made the North East look like a bunch of idiots.. Get them out of Doxford Park and let the seagulls fly fowl and pap on their windows of Northern Rock house.

Kerry, doll said it all, they're scaring you, they're pushing you so you feel like you have no where to go and buckle but i'm unable to fathom what they think they're going to get out of you. As doll said, you don't pay the mortgage you face losing the home, they may kick their feet to be awkward but they HAVE to take possession of the house in the end. They will stop at nothing.

As for the repossesion/auction/bankruptcy debate think about this..

I lived on a new build estate, my repossessed as a bankrupt (ie no chance of me being liable for the shortfall) goes on the market at £2000 more than my mortgage which is £104000, basically what it is worth in this climate.. a sensible price you could argue. The same model house further up my street is a repossession, now in trying to fathom this out I searched insolvency register to see if they were BR, nope so it's a repo without bankruptcy, that's on the market for £84950, now this is a ridiculus price for our (previous) estate. I guess the mortgage lenders think that the borrowers will cough up the shortfall.


Kerry hun, that house will be reposessed, it's not for you to worry about, sit back, enjoy your new home and just take their phone calls with a blase attitude, if they think they're not bothering you, they'll give up and repo (yes I do think they are that shallow)

A horrid time for you, I want to name and shame Northern Rock too, their whole concept of how to deal with people is alien, I suppose they gave 125% mortgages.. showing that they really are clueless.

MicheH

Easy for me to say, sit back, the council tax is a worry I know but i'm sure you would get 50% exemption.

kerrypn

Everyone is so supportive thank you

Its the solicitors fees too-if they DO repo I will be liable-even though its their fault I have incurred them as they told me they wanted me to sell and even paid for the HIP pack!!!


:mad::mad::mad::mad::mad::mad:

I am fuming!!!!!

nervousmother

Dont forget if you pay a IPA you can include the extra council tax..

Northern Rock are a bunch of idiots. I would not have gone BR if they had acted better.. with interest rates as low as they are now if they had allowed us to rent out the property we could have still paid £1k a month and caught up all the arrears....or if they had accepted the 10k shortfall and not blocked the sale we could have come to some arrangement.

The thing is though, its out of your hands you cant do anything about it.

MicheH

Kerry I have been thinking about the solicitors fees. As BR we not supposed to get into strife, we shouldn't have access to credit of more than £500. As a bankrupt surely you shouldn't have been 'credited' with solicitors fees knowing that they were going to exceed £100s. Can you qualify for legal aid? Be good to talk to the debt department of communitylegal advice. Here's the link for the qualifying calculator http://www.communitylegaladvice.org.uk/en/legalaid/calculator.jsp I used these in my quest for help with Northern Rock, they might just be able to help you with the liability for the solicitors fees. I wish I could help you, I really do. It's a nightmare you're living at the moment. I just wish someone know what to do with it all x

dollparts

kerrypn wrote: »

Everyone is so supportive thank you

Its the solicitors fees too-if they DO repo I will be liable-even though its their fault I have incurred them as they told me they wanted me to sell and even paid for the HIP pack!!!


:mad::mad::mad::mad::mad::mad:

I am fuming!!!!!

Yes, I paid for a freaking HIP too.

I have had no mention of paying legal fees but then again Eeyore isn't BR so they are probably saving that pearl for him