House repossessed and credit card company took the balance for unsecured debt problem

Intexim

We had a property that was repossessed by Halifax whilst we were out of the country. The surplus funds that was left over after the mortgage balance was covered was split (it was a 50/50 joint mortgage with my wife) and her portion placed in the Court Funds account, due to us being untraceable. My portion of the surplus was used by Halifax to cover a credit card debt, which to my knowledge was an unsecured debt. I have spoken to Halifax and Shoesmiths (the solicitors) and still do not have any concrete information as to how this occurred.

Firstly, is this legal?
Secondly, if its illegal, how do I go about getting the funds back?
Thirdly, is there a reputable company that works on a "no win no fee" basis, that can be recommended to undertake this task, as we are currently abroad at present.

I will really appreciate some help in being steered in the right direction.

Many thanks.

kingstreet

I suggest you google "all monies charge" and look at articles like this;-

http://www.legalbeagles.info/forums/showthread.php?t=10177

http://www.lovemoney.com/news/property-and-mortgages/mortgages/10381/the-secret-clause-in-your-mortgage-contract

Thrugelmir

Intexim wrote: »

Secondly, if its illegal, how do I go about getting the funds back?
Thirdly, is there a reputable company that works on a "no win no fee" basis,

Had you defaulted on this debt too?

opinions4u

Intexim wrote: »

Firstly, is this legal?

Yes.

Which renders you other questions pointless.

Sorry.

antrobus

And what would be the point of getting the money back from the Halifax that had been used to repay the credit card debt, as that would simply re-instate the credit card debt which would still have to repaid?

P.S. I suspect that there is a backstory to this predicament given that the OP was "out of the country" when the repo went through and is "currently abroad".

LovelyLeeds

Intexim wrote: »

Secondly, if its illegal, how do I go about getting the funds back?

Why on earth would you want the funds back? As other posters have said, there's clearly a lot more to this 'story'.
Too many facts missing to give any opinion/advice.

magpiecottage

If a lender takes possession of a property and sells it then any surplus proceeds after costs have been met and the debt repaid are the property of the former borrower and therefore could, in theory, be enforced as a debt against the former lender.

However, if there are other outstanding debts due to the lender, they can normally use a process known as setting off. Thus the debt they owe you (the surplus proceeds) are set off against the overdue debt you owe them. Any difference will be a debt owed by one to the other.

StuTheDon

From what I can see both your mortgage and credit card were with Halifax. I'm not sure, but I believe that there is a law/rule which allows a bank to use funds in one account to clear debts in another within the same instituation.

As the other posters have said, yes it is legal.

If you were out of the country, made no effort to inform your mortgage providor or bank as to your whereabouts, frankly what did you expect was going to happen?

holly_hobby

I suspect he thought there wasn't going to be a surplus went it was sold by the lender ...

H

Intexim

LovelyLeeds wrote: »

Why on earth would you want the funds back? As other posters have said, there's clearly a lot more to this 'story'.
Too many facts missing to give any opinion/advice.

Regarding my posting, there isn't much more to it. I had my parents of 80yrs staying in the property, but unfortunately we couldn't afford to support them or the property. We tried to sell it and even dropped the price to 50k below market value just to get it off our name as paying a mortgage there with our poor exchange rate was extremely hard to do. I had a standing arrangement with the Halifax for my credit card and paid the monthly installments religiously, but yet they still opted to do as they did.
It is not the fact that the money went to them, their debt was being covered............the principle of the matter is that it could of paid someone else with who I was in debt to.

To some it may seem that I'm trying to screw the bank out of what is rightfully theirs, but please understand, this is not the case. I haven't even delved into the exorbitant overcharging, am not trying to get money back via petty technicalities quoting illegal insurances, etc.

I get the impression that some out there are trying to have a 'POP' at me. Put yourself in the same situation and try to see things from my point of view.
You tell your retired parents they have to move into social housing because you cant afford the roof over their head any more; you resort to having to throw away any profits in your investment by having to acknowledge the only step forward is to let the Sheriff of the court, auction your property knowing full well that you are going to lose virtually every penny you have put into your retirement and yet still run the risk of having negative equity on your loan, which would still need to be paid.

The banking institutions have made so much out of us, both fairly and unfairly, they make us stick to such stringent conditions when we are in need and somewhat desperate and yet the efforts in conducting themselves when they run the risk of losing out is not the same as when they stand to gain, should, in my opinion, be grounds for seeking the slightest hope that the manner in which they conducted themselves, was unethical.

All I'm looking for is the chance to get my money back that actually belongs to me as it was a totally separate transaction and agreement.

If you want to ridicule me, please don't. I'm not perfect, don't always handle administrative matters 100% correctly, but I do believe I should be able to make the decision as to what I want out of this.

Thrugelmir

Intexim wrote: »

I get the impression that some out there are trying to have a 'POP' at me. Put yourself in the same situation and try to see things from my point of view.

No one is having a "POP" at you. We do have empathy. However ultimately you have to take responsibility for your own actions. As your personal financial issues would appear to extend well beyond the contents of this post.

All I'm looking for is the chance to get my money back that actually belongs to me as it was a totally separate transaction and agreement.

Read the small print. The bank was well within its rights. You owe them money so they have a right of recovery. As you reside abroad they would consider both the risk of default and the cost of recovery high.