What happens after repossession?

PIGZ

My husband lost his job about two years ago and with only one wage and 3 kids our house was repossessed by our mortgage company in March as we couldn't keep up with the repayments under a suspended possession order.
The mortgage company put the house up for sale and I read in our local paper at the weekend that an offer has been made on the property. I was told by someone I know that if the house was sold for more than was owed on the mortgage that we would be entitled to the excess but if it sold for less than we owed we would have to pay the shortfall. We owed about £58000 and the offer was for £70000. Can anybody tell me if this is true or am I being fed a load of rubbish. To add insult to injury, the mortgage company sent us a letter last week to say that our mortgage payments were going up 3 months after they evicted us!!!!!

silvercar

You should get back any money owed to you. Be aware that the £58,000 owed when you were repossessed could have increased by charges and interest since that time.

I hope you have found decent alternative accomodation.

Wish you well.

MortgageMamma

Hi there

Very sad that this has happened to you, and I also wish you the best. Silvercar is right you may well be owed some of the money above the debt amount and you need to ask what this is. Also, now your property has been reposessed, it will be noted on the council of mortgage lenders reposession register and if you decide to buy again in future you need to declare you have had a past reposession. This could narrow down the options a bit for you. But I do hope you have found alternative accomodation, housing associations are very useful at times like these. If you need a bit of support or have more questions please just post and we will do our best to help you

Lisa

Ps - dont worry about the effect on your kids, I am a mother and have been in a similar situation years ago when my rented house was sold, and they are resilient little things.

Good luck

PIGZ

Thank you both very much for your help. We moved in to my parents house for a while and settled kids in a new school, we were given a house a couple of weeks ago with a housing association, just down the road from my parents so we do not have to disrupt the kids again luckily and the plus point is that being a housing association at least we won't have the costs of repairs etc now. The experience has put us off buying another house for the foreseeable future.

Will we have to contact the mortgage company to ask if there is any payment due to us, or will they get in touch with us? I thought that it was highly unlikely that we would be given any excess and have trawled the internet trying to find out but you have given us some hope and something to look forward to!

MortgageMamma

I have a docuemtn I think that might put your mind at rest regarding this. PM me your email address and I will scan and email it to you tommorow.