Mortgage company steals my money

GINNAK2

I have two houses, both buy to let mortgages. I won these in my divorce settlement and had to move into one when I split with my ex-wife. The mortgage company CHL (Capital Home Loans) in Fleet, Hampshire, increased the the interest rate on the house I moved into. After having a breakdown and attempting suicide last year, I've been unable to work and because I had the second house entitled to ANYTHING at all. So the debts have grown considerably, causing me a lot of stress. So, in order to sort out this financial situation, I put one of the houses up for sale. I have had this house for around 13 years and was brought as an investment for my children in the future. However, as soon as the mortgage company found out the property was up for sale, I received a letter from them telling me they are taking all proceeds from the sale, under their rules of cross consolidation, minus sales fees. This means I will be left penny less and am very likely to loose the house I live in, leaving me homeless and around £30,000 in debt. The equity the mortgage company is stealing is £65,000. I don't know what to do or which way to turn. Please can anybody help, I'm at the end of my tether.

DTDfanBoy

YES

I don't see how the mortgage company are stealing anything, if your current debts exceed your assets it clearly isn't your money is it.. If selling one property is not enough to clear your debts perhaps you need to consider selling both.

00ec25

At the end of the day you own 2 properties but now face financial hardship. It is good that you are selling off one since that is what you should do in your situation but you signed the mortgage terms and agreed to the cross subsidisation so they are stealing nothing.

You need proper debt advice from one of the charities that provides this for free. Face facts - your debts exceed the value of one property so you must sell one. Your poll is about "rights", what is right is that you signed a contract whose terms allow the mortgage company to seek cross subsidisation because, I assume, you are in arrears on both properties so the company has a "right" (you contractually agreed) to access the money to reduce your debt with them - that is what a first charge on the property means

GINNAK2

NO

With all due respect, I saved the deposit 13 years ago, I took the risk of investment for my children's future, I paid the interest, I maintained the property and I've just paid £5000 out of my profit to sell the property so that the mortgage company can not only take the money to pay off the mortgage, which is right, but also take the £65,000 profit I have earnt in the property!! How is that right? All they are entitled to is the mortgage remittance!

It's just the same as you investing money in ISA's and alike, and the bank turning round at the end of your 13 year investment and taking all of the interest you made! What's right there? There's no difference. I have a separate mortgage on the house I live in, which has nothing to do with the property I've sold. I presume 00ec25, believes that whatever you sign is legal and binding!! It isn't!

I'm trying to get myself out of financial strife, support and provide for my children. I'm still very Ill, and can't get any help from the state, despite paying into it since I left school in 1983. My other debts have nothing to do with the mortgage company.

In the mean time, I have no gas, no hot water, no food and the debts are mounting. How is this right?

kingstreet

What is the sale price of the property and how much do you owe to the lender, in total?

Presumably, if you are paying off more than you owe on the property being sold, you will owe less to them on the one you reside in?

Once the investment property is sold, seek new advice on benefits.

GINNAK2

NO

I owe approximately £101,500 on the mortgage and have sold for £170,000.

ValHaller

GINNAK2 wrote: »

With all due respect, I saved the deposit 13 years ago, I took the risk of investment for my children's future, I paid the interest, I maintained the property and I've just paid £5000 out of my profit to sell the property so that the mortgage company can not only take the money to pay off the mortgage, which is right, but also take the £65,000 profit I have earnt in the property!! How is that right? All they are entitled to is the mortgage remittance!

You don't have any profit until you sell.

I'll answer your poll when you tell us

• How much the 2 houses are worth
• How much you owe on mortgage
• What you will be left with when 1 house sells

GINNAK2

NO

I have sold the property and I'm getting nothing out of the sale. The mortgage company are taking it all!!

Both houses total around £270,000.

I've sold for £170,000 and owe £101,500 on the mortgage.

As I say, I'll be left with nothing when the sale completes on Friday. Not a penny.

GINNAK2

NO

This sort of behaviour from financial institutions, especially in the current financial climate, has been the catalyst for many suicides in this country.

ACG

Are/Were both mortgages with the same lender?
Are/Were you in arrears on either or both mortgages?

A lender cant just take £70k theyre not entitled to and i get the impression either you are confused or misunderstanding something. If they are taking £69k then i suspect there will be a reason for it.

Forget the fact that you bought houses for childs inheritance - that has no baring on the fact. Just stick to the facts and figures and we can try to narrow down if there is a problem or if your mistaken.

kingstreet

What is the total amount you owe to the lender, as it seems to have decided it wants all your indebtedness repaid?

It is not "stealing your money" if the amount you owe is being reduced by an equivalent amount