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Seller in mortgage arrears
Comments
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Isn't it Northern Rock who do the 125% LTV "mortgages" with part as a mortgage and part as an unsecured loan? This is a bit of a dilemma for them if the house doesn't cover the loans. They can sell or repossess at a loss or try and get the extra out of him first, neither of which I can see happening. I would be tempted to say that if you really want this property it might be up for auction in a few months time :eek:BarmyBubba wrote:.....
His mortgage is with Northern Rock, he also has a loan with them......A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
BobProperty wrote:Isn't it Northern Rock who do the 125% LTV "mortgages" with part as a mortgage and part as an unsecured loan? This is a bit of a dilemma for them if the house doesn't cover the loans. They can sell or repossess at a loss or try and get the extra out of him first, neither of which I can see happening. I would be tempted to say that if you really want this property it might be up for auction in a few months time :eek:
They certainly do. The first 95% of the house value is secured against the
house and any amount above that is an unsecured (can Northern Rock demand payment then, as it is unsecured?) loan at the same rate as the mortgage. The actual LTV is only 95%.
We were contemplating going with them, but I'm glad I didn't now!0 -
sounds like the problem they have is the seller is moving abraod - where they can't chase him for debt0
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Yeah, but he is already living there now which is what I suppose is delaying things. Surely from Northern Rock's point of view it would be better for the house sale to go through and him to pay off his mortgage?0
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If they let him pay off the mortgage and release the charge on the property they will recover only the 95% of the property value. If they know he is in Thailand they risk kissing goodbye to the rest.
Now they know he is not living at the property, you can bet he's got a residential mortgage, so he's probably in breach of his mortgage terms. This gives them grounds for repossession. At least then they can recover 100% of the current value of the property rather than 95% of the original purchase price. I'm assuming that they have conditions in their mortgage which allows them to use the security to recover other loans. It may be that not having a UK address breaches the loan terms.
There is still a chance that they will accept the cousin's address or even accept the cousin having power of attorney or the cousin may be in a position to guarentee the loan.I'm a Forum Ambassador on the housing, mortgages & student 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.0
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