House handed back - Deprivation of Capital!!!

andyandflo

GlasweJen wrote: »

How much LHA have you claimed since you handed back your house OP? Would that be swallowed up by the amount that the house hopefully gets auctioned for?

Not sure about the new rules but under the old HB system you could get a claim sanctioned in your circumstances (i.e. had another property, claimed HB, got caught and paid back by selling other property).

eh...

Listen, I couldn't afford the mortgage, I could get no help from SMI.
What was I supposed to do? The bank took the property from me and changed the locks. I had nowhere to live.
What or where was I supposed to live?
I rented a flat and claimed HB, which they now pay.

Are you trying to tell me that because we walked out of home, and lost it and rented elsewhere that I shouldn't be getting HB?

How am I supposed to pay the rent then?

I have no capital apart from £4000 in a bond.

andyandflo

dmg24 wrote: »

You have an interest in the property until you receive the proceeds of sale.

How can I when I don't own the property anymore?

As I have said earlier, The bank said that in exchange for the mortgage, they took ownership of the property.
I have the legal papers that say that in helping me out they accepted the property as settlement for the mortgage.

They got a property worth somewhere near £175/£180 K in exchange for settling the mortgage debt of £103 K

Written into the agreement they say that if there is anything left over after all debts cleared, they would let me have an ex gratia settlement.

dmg24

andyandflo wrote: »

How can I when I don't own the property anymore?

As I have said earlier, The bank said that in exchange for the mortgage, they took ownership of the property.
I have the legal papers that say that in helping me out they accepted the property as settlement for the mortgage.

They got a property worth somewhere near £175/£180 K in exchange for settling the mortgage debt of £103 K

Written into the agreement they say that if there is anything left over after all debts cleared, they would let me have an ex gratia settlement.

You don't understand. Think about when you 'owned' the property but the bank had the rights to money from the property - that is an interest in the property. Now the situation is the other way round.

andyandflo

dmg24 wrote: »

You are doing it again - someone tells you something, you say they are wrong.

Until you have that money you have an interest in the property, just as the bank had an interest in the property when you owned it.

I don't!!!!

I have a legal document that was prepared by the bank that I relinquished all rights and claims in respect of the property when I gave them it.

The bank had an interest in it because they had a secured charge against it.

I don't, I gave up that right to any equity in the agreement. I asked them about what would happen if there was any money left over. They said that I would have no legal right to it but that they would make an ex gratia payment to me of a sum.

Oldernotwiser

If you had £135,000 in savings and £80,000 outstanding on the mortgage, why on earth didn't you pay your mortgage off and secure your home?

dmg24

andyandflo wrote: »

I don't!!!!

I have a legal document that was prepared by the bank that I relinquished all rights and claims in respect of the property when I gave them it.

The bank had an interest in it because they had a secured charge against it.

I don't, I gave up that right to any equity in the agreement. I asked them about what would happen if there was any money left over. They said that I would have no legal right to it but that they would make an ex gratia payment to me of a sum.

You don't change, do you? Even after all the vitriol you and your AE's have aimed at us, we still try to help and you still throw it back. If you are unwilling to listen, feel free to go and ask somewhere else.

viktory

dmg24 wrote: »

You don't change, do you? Even after all the vitriol you and your AE's have aimed at us, we still try to help and you still throw it back. If you are unwilling to listen, feel free to go and ask somewhere else.

He is a 100%, dyed in the wool, rude, arrogant fool dmg. It is testament to your good nature that you continue to try and help him (as do others). I wouldn't.

andyandflo

dmg24 wrote: »

You don't understand. Think about when you 'owned' the property but the bank had the rights to money from the property - that is an interest in the property. Now the situation is the other way round.

Yes I know that, when there is a mortgage involved.
But when there has been a legal transaction of 'sale' any rights I would have had to the equity went with the 'sale'

Put it simply, I owned a property worth £180K with a mortgage of £103K. The bank had the rights over that property by virtue of a secure charge for the mortgage.

Now - I couldn't pay the mortgage anymore so I 'sold' the property to the bank for £103K. My name comes off the deeds and the responsibility for selling that property on lies with the bank. If they resell it for less than £103K the bank will lose money.
If they resell it for more than £103K they make a profit.

The bank's interest in the property is still with them as they now own the property. My interest ceased when I signed the transfer deed. Just the same way as anybody does when they sell a house.

If you sold your house you could not come back at a later date and say that you still have an interest in it!!!!

What the bank then agreed was that if they do make a profit on the resale of the property they will share that with me by way of an ex gratia payment. There is no contractural agreement in force.

Oldernotwiser

viktory wrote: »

He is a 100%, dyed in the wool, rude, arrogant fool dmg. It is testament to your good nature that you continue to try and help him (as do others). I wouldn't.

And his attitude to money is so hopeless that I find it difficult to believe that he was ever an accountant.

tcr_3

Andy, it's poor decision making on your part which has led you to where you are.

It's not the fault of the government, the DWP or civil servants.

Your first mistake was to assume DWP would pay your mortgage. Why would they ? You didn't use the mortgage money to buy the house, you owned the house already, you used the mortgage money instead to discharge a personal debt. Big mistake, your mistake.

Your second mistake was to "hand in the keys" and give a house worth £180,000 to the bank to discharge a debt of £103,000 on some vague possibility they might "give you some money" if and when they sold it. Catastrophic mistake, your mistake.

But the greatest mistake you've made ? You've come here for advice and consistently ignored everything you've been told. Not only that, you've been giving out advice to others which has been half baked, ill thought out. And with every post you're ranting against "the system", "the DWP" as if you yourself weren't the architect of the entire mess you're in.

I'm fed up to the back teeth of reading your posts. I respectfully suggest that, given you're not listening to a word anyone says, given that your advice to others is so poor, that you go find some other part of the forum to vent your frustrations.