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reposession confussion
k0r54
Posts: 3 Newbie
Hi,
My best mate has had his place repossed. His mortgage was £59,000 at the point of sale, he also had a second charge of £15,000 and ontop of that a third charge of £7200 to his parents (who leant him the money to begin with) which all equates to £84,000.
They are saying the property was on the market for 13 months and eventually sold for £40,000 on the 26th Feb 09. We checked on the land reg and it says it completed on the 27th Feb 09 for £65,000.
As this seemed odd he spoke to the bank and they said it was sold the day later to another buyer for the additional amount of £25,000.
The reason it seems a little odd to me is that £65,000 is pretty much bang on the market value. Now for someone to buy it at market value and not get any financial gain from it would suggest they must have wanted it and therefore viewed it and even possibly put an offer in before it went to auction. I told him to request from the bank that they provide evidence that there was no offers made on or around this figure and if so why did they not sell it then put a minimum amount on it at auction for only 40k.
Baring in mind the £84,000 figure made up from above which WE calculated. The bank have come back with £5,200 of fees involved, £59,000 mortgage and £19,000 which is labelled as interest. £19,000 INTEREST to me seems an obsurd amount of interest for 13 months. This sounds like it does not include the second and third charge however if we add this up. It does perhaps consiquently add up to £84,000.
The initial question is does the INTEREST include the second/third charge.
The next is what on earth has gone on with this purchase and then resale the next day? They are saying it is possible to complete the house one day and then sell it and COMPLETE the next day to another buy but it seems very unlickly.
I have sat down with him and wrote a letter to the bank oulining the issues above but yet to have a response. He is obviously massivly concerned at all this so hopefully a few answers would be good.
Thanks
k0r54
My best mate has had his place repossed. His mortgage was £59,000 at the point of sale, he also had a second charge of £15,000 and ontop of that a third charge of £7200 to his parents (who leant him the money to begin with) which all equates to £84,000.
They are saying the property was on the market for 13 months and eventually sold for £40,000 on the 26th Feb 09. We checked on the land reg and it says it completed on the 27th Feb 09 for £65,000.
As this seemed odd he spoke to the bank and they said it was sold the day later to another buyer for the additional amount of £25,000.
The reason it seems a little odd to me is that £65,000 is pretty much bang on the market value. Now for someone to buy it at market value and not get any financial gain from it would suggest they must have wanted it and therefore viewed it and even possibly put an offer in before it went to auction. I told him to request from the bank that they provide evidence that there was no offers made on or around this figure and if so why did they not sell it then put a minimum amount on it at auction for only 40k.
Baring in mind the £84,000 figure made up from above which WE calculated. The bank have come back with £5,200 of fees involved, £59,000 mortgage and £19,000 which is labelled as interest. £19,000 INTEREST to me seems an obsurd amount of interest for 13 months. This sounds like it does not include the second and third charge however if we add this up. It does perhaps consiquently add up to £84,000.
The initial question is does the INTEREST include the second/third charge.
The next is what on earth has gone on with this purchase and then resale the next day? They are saying it is possible to complete the house one day and then sell it and COMPLETE the next day to another buy but it seems very unlickly.
I have sat down with him and wrote a letter to the bank oulining the issues above but yet to have a response. He is obviously massivly concerned at all this so hopefully a few answers would be good.
Thanks
k0r54
0
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