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Claim Back or Compensation from Mortgage Repossession

edited 30 November -1 at 1:00AM in Mortgages & Endowments
5 replies 1K views
chrisaxe21chrisaxe21 Forumite
6 posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi all

Not sure if anyone can help or if there is anything that can be done but worth an ask! My story...

In 2011 a mortgage I held with an ex partner had to be defaulted and the house repossessed. She walked out on the house and stopped contributing to the mortgage even though her name was on the mortgage. I did all I could to pay the mortgage on my own including changing it to an interest only for a short time, but the lender didn't want this to be permanent. I had the house on the market with around 50 viewings and 3 offers, which all fell through. I could have transferred the mortgage over to myself so I could have a little more control on the mortgage and/or move it to one with a longer term for example but I needed two signatures for this, like many of the other requests that needed two signatures. She eventually went bankrupt to avoid any dealings with the mortgage and therefore the two signatures I needed was never going to happen.

The only way out of this mortgage that was legally bound by two signatures, one of which would never deal with it again, was to have it defaulted and the mortgage repossessed.

4 years on and my credit score is on the mend and everything being reversed. I have a shortfall from the mortgage lender selling the house at a very very low price. When I asked for my own valuation on the house price they said it was too late. I got the impression they wanted a quick sale and did exactly that so never giving me an opportunity to check.

Is there any service out there that can check if the lender followed procedure to getting a quick sale?

If there any service out there that can claim anything back from the ex partner regardless of her bankruptcy?

Is there anything that can be done to reduce the outstanding debt? Any government help schemes? Any investigation services that check if it was all done correctly?

Bit of a long shot but someone may know something

Thanks

Chris

Replies

  • betmunchbetmunch Forumite
    3.1K posts
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    The lender has a responsiblity to get the highest price they can for the repossessed party.

    There are proceedures in place to make sure this happens such as advertising the price that is accepted and accepting any higher bids that come in right up to exchange.

    A house is only worth what someone will pay regardless of what a surveyor might say.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thanks for replying!

    Yeah that's what I was told by them too in 2011. But as it all happened so fast I really didn't feel like I had much say in it or the chance to review it. Let's put it this way, I was marketing it around £150k, the estate agent suggested dropping it to £140k, and the mortgage lender sold the house as a repossession for £110k. The estate agents I have chosen have never suggested anything as low as £110k hence why I feel it was rushed through.

    What can be done to review what happened in 2011 and find out why they sold it so low? Is this a case for the Financial Ombudsman or is there another service I should be contacting for this?

    Chris
  • ThrugelmirThrugelmir Forumite
    81.3K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    You and ex were jointly and severally liable for the mortgage debt. As Betmunch says mortgage lenders follow a prescribed procedure. So there's nothing to say.

    Life isn't always fair on a personal level. Accept what's happened and move on. Learn from the experience for next time.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • betmunchbetmunch Forumite
    3.1K posts
    ✭✭✭✭
    I would guess you would need to show that someone else, who was proceedable, tried to buy at a higher price than what was achieved.

    Then show that the repossessing bank refused their offer without good reason.

    Maybe start by complaining to the bank the repossessed and their reply should state who you would escalate it to.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Cheers

    I'll give it a try

    Chris
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