repaying negative equity

venturer01

We bought the house for £32,500 in 1993, it was repossessed in 1999 and sold the following year at auction for 13,000. The building society namely the Marsden knew exactly where we were now living but only got in touch through a solicitor this year.

snowmaid

venturer01 wrote: »

We bought the house for £32,500 in 1993, it was repossessed in 1999 and sold the following year at auction for 13,000. The building society namely the Marsden knew exactly where we were now living but only got in touch through a solicitor this year.

The snots!!! :mad: :mad: You probaby find that your house was auctioned to a friend, family member etc and now you sit with the debt!!!! I have heard of this happening, whether there are stricter controls in place I don't know. Should they not have given you the option to sell your property first?!?!? Not sure how it works but, this is disgusting.

Kez100

That movement was certainly not a reflection of the market in 1993-1999 down here.

We experienced a price fall between 1991 and 1994 by about 10 percent. By 1999 we were quids in again.

I know everywhere is different but it does sound very off kilter to me. Was there any reason the house value could have fallen by so much? New motorway running past front door - that sort of thing?

Also back then we used to buy MIP's I know they said insurers could still come back to us for any loss (despite paying the premium). Did you have any cover like this?

venturer01

You would have thought so, I am damn sure we would have got more than what we paid for it.

maninthestreet

venturer01 wrote: »

We bought the house for £32,500 in 1993, it was repossessed in 1999 and sold the following year at auction for 13,000. The building society namely the Marsden knew exactly where we were now living but only got in touch through a solicitor this year.

1993 was about the very bottom of the house price slump - how could it have lost 60% of it's value between 1993 and 1999 ????

telfordwhite

Kez100 wrote: »

I know everywhere is different but it does sound very off kilter to me. Was there any reason the house value could have fallen by so much?

It was sold at auction, possibly why it lost so much value.

snowmaid

Sorry, but this sounds like an 'inside' job to me! :eek:

beeblebrum

WE are in the same position as you. My partners house was repossessed in 1998. We moved into housing association accommodation in 1999. There was negative equity on the property as he had bought back in the late 80s when interest rates were running at 12-13%. He went through a relationship breakdown, lost his job, arrears built up, we had a baby and eventually could not afford the mortgage payment each month. We always knew they would catch up with us sooner or later, took them 3 years in end. Its horrible when you first get the demand letter. I recommend you look at http://www.home-repo.org/. We got loads of invaluable advice from here and you realise you are not alone. We are now paying back £30 a month which will take 80 years to pay back the balance! They have offered several times, for us to make a one off lump sum payment of about 2.5k in "full and final settlement" of the debt, but sadly we have not been in a position to afford it. Not bad seeing as the amount they are claiming from us is nearly 28K. Try not to get too worried about it and take a look at the website above.

venturer01

Hi ,
A big thank you for the site information it looks very interesting.:j

Dianexxx

coal9011

Yes it is 12 years for mortgage debt. Everything else is limited to 6 Years
I suppose the "thinking" is give them time to get back on their feet and aquire some new assets - then come back for another try!

However, make sure it is your original lender's solicitors chasing you and not some parasite Debt Collection Agency working on their own.
In any event from what you say you are in no position to be able to pay, therefore: "you can not get blood out of a stone"

Try to not worry about this too much, life's to short.