Mortgage Repossession

johnbaker1986

I'm not sure if this is the right place to ask as I'm new to the site.
I had my home repossessed last month an it's up on the market now. I'm just looking for advice on what to expect next and what is likely to happen to future finances etc...will I be able to get another mortgage in the future? How long would I have to wait?

Thanks for everything.

Thrugelmir

Are you in negative equity?

stevenjames8

I've had the same problem and would like help. I have about £20k in negative equity

National_Debtline

Hello there.

If the property has been repossessed your lender will have an obligation to try and ensure that they get the best possible price for the sale. It's important to bear in mind that the property could be auctioned.

Once sold it is highly likely that you will be asked to pay any shortfall (the difference between the sale price and the amount outstanding on the mortgage). Since this shortfall is no longer secured on the property it is regarded as a 'non-priority' debt - the same as credit cards, loans and overdrafts etc.

We have come across plenty of examples where an individual starts to get chased many years after the house was repossessed, frequently the debt may get sold on to a debt collection agency - these have no further powers than the powers that original lender would have had.

Here are a couple of useful fact sheets that I think you'll find interesting:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=07_negative_equity

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

It is likely that your credit file will be affected for 6 years.

Best wishes,

David @ NDL.

stevenjames8

National_Debtline_representative wrote: »

Hello there.

If the property has been repossessed your lender will have an obligation to try and ensure that they get the best possible price for the sale. It's important to bear in mind that the property could be auctioned.

Once sold it is highly likely that you will be asked to pay any shortfall (the difference between the sale price and the amount outstanding on the mortgage). Since this shortfall is no longer secured on the property it is regarded as a 'non-priority' debt - the same as credit cards, loans and overdrafts etc.

We have come across plenty of examples where an individual starts to get chased many years after the house was repossessed, frequently the debt may get sold on to a debt collection agency - these have no further powers than the powers that original lender would have had.

Here are a couple of useful fact sheets that I think you'll find interesting:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=07_negative_equity

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

It is likely that your credit file will be affected for 6 years.

Best wishes,

David @ NDL.

Thanks for that mate. It's a real help.