Mortgage discharged by mistake?

garythehutch

getmore4less wrote: »

If you structure your finances correctly and don't own the house(joint tenants is not going to work).

Then die there is a chance the debt could be written of.

I'm not sure I'll fully benefit from that, but thanks.

SuperSaver123

What would selling mean? You can possibly sell?

Just throwing an idea. You do what you think is right.

Ethically, you should still keep paying and I most likely would carry on paying if that was me (I would worry too much about possible litigation etc). It would, however, just take the threat/stress away that the bank can repossess should anything happen.

kingstreet

The mortgage may have been discharged, but the loan still exists.

The mortgage is the deed which ties the security property to the loan. The mortgage isn't the loan.

Sometimes that is forgotten.

garythehutch

kingstreet wrote: »

The mortgage may have been discharged, but the loan still exists.

The mortgage is the deed which ties the security property to the loan. The mortgage isn't the loan.

Sometimes that is forgotten.

Ok, so taking that as truth (and it sounds perfectly logical, btw) - it will no doubt state in my mortgage contract that the LOAN I have been given to facilitate the deed is SECURED against that property.

Now that it isn't (banks fault), I cannot fathom how I will not be due to some kind of compenstation, even if it isn't that the house was paid off. They agreement between myself and the bank has effectively been broken.

I won't stop paying, that'd be stupid until I take legal advice - but that legal advice may be that I'm entitled to some sort of compensation.

Just because the bank is a bank doesn't mean they're exempt from penalties. If I breached the agreement in the same way, they'd be straight up my backside with charges!

ACG

When you say compensation what do you think you will get?

At best your looking at £50-100 for inconvenience.

If you look at this in another way you are actually in a better position. You have a large unsecured loan at the rate of a secured loan.

If your expecting to be thousands of pounds or even hundreds I think you are mistaken.

anselld

garythehutch wrote: »

Just because the bank is a bank doesn't mean they're exempt from penalties.

Penalties are not generally enforceable in contract law. You would need to claim for damages based on the loss you have suffered (which is none).

garythehutch

ACG wrote: »

When you say compensation what do you think you will get?

At best your looking at £50-100 for inconvenience.

If you look at this in another way you are actually in a better position. You have a large unsecured loan at the rate of a secured loan.

If your expecting to be thousands of pounds or even hundreds I think you are mistaken.

I think I should get compenstation releative to my mortgage/loan agreement being fundamentally breached.

If the shoe was on the other foot and the bank said "Look mate, you've breached our agreement", do you honestly think I could turn around and say "Yeah you're right. Sorry about that, but I'll make it up to you - here's £50 worth of Marks and Spencers vouchers for the inconvenience". Not a chance!

If I stop paying the mortgage, the loan... the bank will threaten to reposs the property... except in my case, they can't - because the mortgage is not secured against any property.

So realistically, what can they do to MAKE me pay bank an unsecured loan? I could go bankrupt but that wouldn't be in the banks interests as they'll get nothing from that.

All said, thanks to everyone for their opinions. Even if loads of people posted here saying I had a case, which clearly hasn't happened, the plan was always to go and get proper, legitimate legal advice.

Fingers crossed for me... think I'll need some luck if the above posts are anything to go by.

ACG

The bank can charge fees based on the agreement you signed.
They never signed anything to say they would give you money for !!!! ups. They do have a duty to ensure you are in no worse position had their mistake not happened but your actually in a better position...

So in reality all they need to do is cover your time/phone calls. That isnt time spent speaking to solicitors and all the rest of it, its time for calling them up telling them about the mistake and signing any documents to put it right.

You then have the ethical stance but I have taken that out of any replies just to try and be unbiased.

I wish you all the luck but I genuinely cant see you coming out of this with anything more than £100 (I dont think you will get that being honest) but you never know.

I would make sure your not throwing too much good money after potential bad money.

Brock_and_Roll

Don't tell them and if you are ever in an unfortunate situation where you are in severe financial difficulties, you be able to use their error to gain some leverage.

garythehutch

Here's another question. In theory, what if this land is registered against the ex?... and there's no mortgage on the house (but I've got a hefty loan left).

Legally, all I have is a loan... but if someone else owns the land, then because I don't have a secured mortgage, could it be that the ex could (if they wanted to) knock the house down and kick me out?

Where would myself and the bank stand then?