Repossessed House Fair Market Price??

dawny75

So, Northern Rock have taken possession of our house and today we have found out that it has gone on the market for £99,950. Considering we had it valued in March this year which came out at £115,00 we think this is not a true reflection of its value. Its fully modernised, GCH, DG, New roof, conservatory etc etc. I phoned NRAM repossession department and he insisted that the surveyor and estate agent agree on the price and see it as fair even though two similar house on the street are up with the same agent for £124,000. We are worried now because we are in negative equity to start with and at that price the second charge, dreaded First Plus, wont get a penny. Does anyone think its a fair price? Are we overreacting? Any advice welcome!!! We will end up owing around £30 to £40 thousand after it has sold and will have to go bankrupt.

fermi

Can I dispute the amount my lender says I owe?

Can I dispute the amount my lender says I owe?

The FSA's MCOB rules say that all lenders must obtain the ‘best price that might reasonably be paid’ when they sell your house. If you do not think they have done this, it might be possible to dispute the amount they say you owe. You have six years from the date of sale to make a claim against the lender. You will need proof to support your case, such as valuations for your house at the time.

If you think any of the examples below apply to you, phone us for advice.

• The house was sold for a lot less than the market value at the time of sale.
• The house was not marketed well enough to obtain the best price.
• You arranged a sale which was refused by the lender, but after repossession the house was sold by the lender for a much lower price.
• If the house stood empty for a very long time, you may be able to argue that the mortgage company should have rented it out and therefore off-set possible rental income against the shortfall balance.
• Check who bought the property. Your lender should not have sold it to a related company.

Who do I complain to?

On 31 October 2004 the Financial Services Authority (FSA) took over the regulation of mortgage lending and problems with existing mortgages. This applies to all mortgages where the lender had a first charge over the property, and at least 40% of the property is lived in by you or your immediate family. It does not apply to secured loans regulated by the Consumer Credit Act 1974. If you are not sure what type of loan you have, phone us for advice.

If you are not happy about the way in which your lender has dealt with the mortgage shortfall, complain to them first. If you are still not happy, you could make a complaint to the Financial Ombudsman Service (FOS). See ‘Useful addresses’ at the end of this fact sheet.

fermi

While the above refers to disputing what has already taken place, I think much of it is still relevant.

dawny75

Thank you for your reply...i will have a look into it x

DannyboyMidlands

Unfortunately I don't think there is much you can do until it sells. Until then its all ifs, buts and maybes.

Maybe they have priced low to attract interest.

What have similar properties sold for recently? The asking price of properties that haven't sold aren't really relevant.

tiggerbodhi

dawny75 wrote: »

We will end up owing around £30 to £40 thousand after it has sold and will have to go bankrupt.

Do you intend going BR no matter what the shortfall is? if so how much it is is irrelevant.

Re-po properties always seem to be marketed and sold for below the "lived in" properties, possibly because people buying a re-po expect a bargain, you have to also counter that for each month the house is not sold the interest on your mortgage not being paid is being loaded on.

Also consider that the two on the Market for £124K locally, have they sold? will they sell at that price? probably sell for 10-15% below this.

jules888

My mother in laws house was repo"d 6 years ago.Sold quickly for a cheap price.I always thought repos were priced low to get a quick sale.

FiatFan_2

Duno if it helps any, but we voluntarily surrendered our house as part of our iva. The house 4 doors down has just gone on the market for 125k but written in the iva is an expected return of just 85k from the sale of the house through the mortgage company. As were in an iva then shortfall is irrelevant as it's covered by the iva, the dividend will just vary dependant on the final outcome of the sale. Assuming your either BR or IVA then the shortfall will be irrelevant to yourself also.