Mortgage Shortfall Info Please!!!

west0504

Hello everyone,

Apologies but its another newbie here who is cant do searches properly!

I'm just wanting a bit more information from anyone who has gone through a repossession etc and then had a mortgage/debt shortfall afterwards...
I am currently starting the journey and i'm terrified of what happens to the shortfall after sale, fees, charges plus negative equity in the first place. I've done lots of reading about it but just wanted some personal experiences about lenders attitudes, repayments, usual stresses etc!

Thanks and apologies if this thread is in the completely wrong place Desperation has set in!

west0504

just bumping it up incase

Angyles

I can't offer any advice but just wanted to say good luck!

SouthCoast

What is a mortgage shortfall?

Many people find themselves being asked to pay large sums by their mortgage lender after they have been repossessed or have handed in the keys on their house. Often people think that once they have left the house their liability ends. However, this is not the case if the house is sold for less than the outstanding mortgage. The debt that remains is usually referred to as a mortgage shortfall. This also includes the monthly instalments and interest that has been added on to the debt until the house is sold, plus legal and estate agents' costs.


http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

west0504

Thank you both.

I have read up quite a bit about what it is but just wanted some more personal experiences

DVardysShadow

One tip. Get a friend to mystery shop for your property once it goes on the market. You need a good friend who will testify for you if it comes to it. If there is any funny business from the Estate Agent - can't get a viewing, details not made available when the mystery shopper sets criteria which clearly include your house, then go to the lender.

In the last housing crash, it was not unknown for EA's to sell houses at mates rates for a backhander.

west0504

Thanks for that tip. I know the woman who owns the local newsagents has lots of EA "contacts" as she owns half of my street already! I also know she likes a bargain and loves repo's. I would imagine she'd be straight in there making a stupid offer that would ruin me!