repossesion

cattie1

my OH mum has given me permission to ask this question as she does not have access to the internet, about a year and a half ago her house was repossesed (she took over a pub and trusted her son (not my oh!) to live in the house and pay bills etc-which he did not!) she could not afford all the missed bills on top of all the bills and taxes she was paying for pub and her house was eventually repossesed (sp?) and then put up for sale.
what she would like to know is as the mortgage company made a profit of over 40,000 on the house is she entitled to any of this-as apparantely somehow has informed her (i don't know who) that she is.
thankyou.

OberonSH

Hi, I would contact CAB and see what's what on that one. I'm sure if there's anything left after all the bills are paid it should belong to her - no-one else has a claim to it.

lynzpower

No. Once your mortgage provider has taken possession of the property, they keep whatevers there for thier coffers is my understanding

cattie1

OberonSH wrote:

Hi, I would contact CAB and see what's what on that one. I'm sure if there's anything left after all the bills are paid it should belong to her - no-one else has a claim to it.

she has already been to cab and the told her to get a solicitor as they think she is entitled to it-but she can't afford a solicitor and doesn't know where to start, the money would come in great for her as she is still trying to pay a council tax bill from the pub-which she no longer has it it cost her a lot more than she was making.

OberonSH

Most solicitors will give you a half hour consultation free, to see of you have a claim, might be worth taking this offer up.

Pobby

One thing that your Mum should do is see if she is entitled to a discount on her business rates.Certain small traders are allowed this.

desmonds

Hi,

Click on the folowing link.........

http://england.shelter.org.uk/advice/advice-2914.cfm

"Any money left over after everything you owe to your creditors has been paid will be yours."

Now i'm not sure if the above is only true if you sell the house yourself even after you have been evicted.

It may be that if the mortgage company has already sold the property then it's now too late and they may well be allowed to keep the profits but you may still be able to challenge this.

If the house has not been sold yet then an Order for sale will allow you to sell the property yourself and you pocket the remainder once the creditors have been paid.

An Order for sale can be issue by a judge allowing you to sell the house yourself if you feel that the mortgage company is underselling it or that you think you can get a better value for the house.

If you think this might be possible, contact a solicitor immediately or call the Community Legal Service Direct Helpline on 0845 345 4 345.

If the property has been undervalued, you can ask the courts for an injunction to prevent the sale. This can be done at any time before the completion date. Lenders have a legal responsibility to get the best price for the property that can reasonably be obtained. If you think your lender has failed to get a fair price, get advice from a solicitor. You may be entitled to compensation.

The homepage that this above info was obtained from is

http://england.shelter.org.uk/home/index.cfm

It might be worthwhile contacting them for some advice.

Hope this info helps

Desmonds

cattie1

thankyou but it's not the fact it has been sold for too little it's the fact they made 40,000 profit on the house, after paying all the debts off and pobby she doesn't own the pub anymore as she couldn'tafford it and got herself into more debt.

A_Nice_Englishman

Shelter also say

If you have other debts that were taken out with your home as collateral (such as a second mortgage), these creditors may be entitled to a share of the proceeds, but your debt to your mortgage lender will be paid first. Any money left over after everything you owe to your creditors has been paid will be yours.

Were there any such creditors? Did she take a second mortgage on the house to buy the pub, for example?

What communications has she had from the mortgage company?

As she's been moving about a lot it could be as simple as a letter / cheque being sent to the wrong address. I would get her to ring them and ask them to send a statement of the sale price and how it was distributed.

cattie1

thanks nice englishamn -she did indeed take a 2nd mortgage, when she tried contacting the mortgage firm they told her she was not entitled to anything after she went to cab and contacted them again they started ignoring her apparently.

desmonds

cattie1 wrote:

thankyou but it's not the fact it has been sold for too little it's the fact they made 40,000 profit on the house, after paying all the debts off and pobby she doesn't own the pub anymore as she couldn'tafford it and got herself into more debt.

Cattie,

That's what I mean Cattie.....The 40K profit if the house had not been sold by the mortgage company would be your money if you had applied for an Order for sale.

If a house is repossessed then the house becomes the property of the secured and unless you step in an apply for an injunction to stop the sale and then ask the courts for an Order for sale allowing you to then sell the property yourself because you feel you can get more then this £40K or even more if you'd have sold it yourself would have been your money.

But the thieves and crooks know what they are doing and rely on peoples ignorance and lack of knowledge which in your case has cost you at least
£40K which could have been yours if you'd have known.

It always pays to seek advice not just off a forum but proper legal advice from a solicitor.

Please at least challenge them on this and hope that this money is reclaimable.

All the best


Desmonds