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voluntary reposession of house

snuggles1969
snuggles1969 Posts: 1 Newbie
edited 21 April 2011 at 9:46PM in Mortgages & endowments
please can u help me cant find out up todate rules on this i have been told today by a good friend that mortgage companies can no longer sell repossed house below there current market value is this true me and my partner have spilt and we cant either afford the mortgage on our own any help or advice wounld be appreicate i dont work due to illness he works ful time x we have three children under 8 x

Comments

  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    Have a read of this http://england.shelter.org.uk/get_advice/repossession
    Selling up for the 'market value' is surely a better option than allowing your house to be repossessed, and having to pay any shortfall. There's no requirement on lenders to sell for a particular value.
  • silvercar
    silvercar Posts: 49,799 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    They will sell the house for what they can get for it. So it will be priced to sell quickly.

    The market value of an empty property looking rather sad and priced to sell quickly will be lower than a spruced up one with fresh flowers and smelling of roast coffee. Buyers will also be aware that the property has been repossessed (the fact it is empty and the water outlets taped over and the sign in the window...) and know that the lender will be keen to sell quickly and that is factored into the price.
    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.
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    i have been told today by a good friend that mortgage companies can no longer sell repossed house below there current market value
    There's no such rule, the bank will sell for whatever they can get, and then chase both of you for any shortfall.
    poppy10
  • Your friend is wrong. Get proper advice. Shelter, CAB, etc.
    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
  • Trollfever
    Trollfever Posts: 2,051 Forumite
    Your friend is wrong. Get proper advice. Shelter, CAB, etc.

    Agreed.....
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