Flat sold, mortgage in arrears

Littlechester

I accepted an offer on my property in November 2010, we are yet to complete due to problems with the freeholder extending the lease for completion.

I moved out at the end of november as my partner bought a house and i am living with him. I am now 2 months behind on my mortgage, as I am not working at the moment.

The mortgage company are chasing me for my arrears obviously, and although I have let them know about the sale going through, they are talking about repossession. I will soon be 3 months in arrears, and its only going to get worse until the sale completes.

Would it not be in their interest to hold off repossessing as they will be paid in full in a matter of weeks?

CloudCuckooLand

They will pursue you for any shortfall, so in the end they will not lose - and will add fees, charges and interest, too, in the meantime.

Best you keep the arrears under control (borrowing from boyfriend or whoever), to protect your credit history and avoid repo that could result in them coming after you for thousands.

The sale, while nice to know is irrelevant until exchange of contract. The buyer may get tired of the delays and walk away...

Mallotum_X

Have you many any attempt to pay anything at all?

Did you speak to them before deciding to default or wait for them to get in touch?

It may be sensible to speak to them in more detail now, make sure they have your solicitors details etc and make some token payments now.

How long before completion is expected?

Littlechester

Sadly I waited for them to write to me several times before responding, as I was hoping and hoping contracts would exchange any day.

I am not in a position to pay anything at all, nor is my partner. As we are living on one wage at the moment.

The problems with the freeholder/lease extension has now been sorted, and a new draft lease is now with the buyers solicitor. The delays have mainly been with the buyer himself, as he could not prove his deposit to the mortgage company, as his bank has 'lost' his money. Then found, in which time 30 days were up and he had to start a new mortgage application. This is now done, and a survey is being done tomorrow. So I don't foresee any other delays. Do you think I should right to them again with solicitors details etc? so they can check up if needed?

There wouldn't be a shortfall, as the sale price 50k over what I owe them on the mortgage. (Had the property a long time).

DVardysShadow

FGS don't let your buyers know about this - else they gazunder you big time.

Littlechester

DVardysShadow wrote: »

FGS don't let your buyers know about this - else they gazunder you big time.

Why? how? What is guzunder?

DVardysShadow

You can google on gazunder. Basically, if they sense that you are hovering on repo, they can reduce their offer substantially, knowing that you are unlikely to find another buyer quickly enough

Mallotum_X

Keep the mortgage co informed of where you are up to, and as said above dont let the buyers know.

Let them know the survey is taking place - call them. If you deal with them then it may help get things over the line. At least you are fairly close to the end now.

Richard_Webster

Keep the mortgage co informed of where you are up to, and as said above dont let the buyers know.

Write or get your solicitor to write to the mortgage lender explaining the position. DO NOT rely on telephone calls - get it documented.