Advice on repossession where the mortgage company owes me

alteredstate

Sorry if this is the wrong place to post this but i am looking for a little bit of info about moneys owed back to applicants after repossession.

Basically I left my ex Husband many years ago (2001) I just walked out on the relationship and left him the house. I later found out that the house had been repossessed. Now out of the blue he is trying to make contact with me which i am very uneasy about advising that we are owed money from the mortgage company due to the house selling for alot more than the debt which was owed. Unfortunately as i am working away from home and also have a family commitment i am unable to call the mortgage company till Monday but thought i would ask advice from the forum that knows everything.

From what i gather he wants half of the money but is unable to get any until i sign some forms.
I would have thought that if there was an outstanding balance that due to the time elapsing since the repossession (early 2002) it would just automatically go to the company?
Thanks in advance

Dan_1976

You need to speak to the Solicitors acting on behald of the lenders first. Then maybe the lender. You may also want to get your own legal advice.

You will be owed anything left. For example

House sold at auction £100k
Legal and lender costs £10k
Mortgage outstanding £60k

Balance owed to the borrowers £30k

Its not as simple as that but the surplace goes to you unless other charges are held on the property.

Trollfever

A £4 search at The Land Registry should help to clarify the situation.

Dan_1976

Very good point!

Radiantsoul

Are you happy with a 50/50 share of the surplus? Is he?

If not you need to get legal advise. If you are both happy with a 50/50 split you will get the surplus. The mortgage company would have discharged all the other secured creditors.

johnboya1980

I would definitely check the terms of the mortgage first if you are uneasy about talking with your ex. My friend has his house repossessed which sold for £20k more than the debt owed. The conditions of the loan meant that the bank kept all the surplus. If you find out you aren't actually owed anything then it may save you hassle liaising with your ex, even if you are worse off financially.

opinions4u

johnboya1980 wrote: »

I would definitely check the terms of the mortgage first if you are uneasy about talking with your ex. My friend has his house repossessed which sold for £20k more than the debt owed. The conditions of the loan meant that the bank kept all the surplus. If you find out you aren't actually owed anything then it may save you hassle liaising with your ex, even if you are worse off financially.

Care to elaborate?

Are you talking legal costs and ERCs or some strange and illegal condition?

johnboya1980

I would elaborate if I knew any more. All I know is that back in 1995 he was with the Halifax when was repossessed. When they sold his house it went for £240,000 from the £220,000 he owed them. I'm sure there must be some legal pros on here who can confirm if this ever happens, but surely if the bank take possession of the house, why would they want to share any profits? Must admit I've never heard of anyone getting money back when their house has been repossessed. I'm not talking about ERCs, he wouldn't have had any if he wasn't paying at all
I hope things turn out well for you anyway.