Help! House Repossessed!

jeanie49

My home was repossessed on Wednesday. I have had buyer sorting details of the house including new deed for land registry and it took 8 months. Mortgage was in arrears but mortgage company had agreed sale with shortfall due to be repaid with monthly payments after sale.
Tuesday buyer paid deposit and was going to exchange with completion this Friday. Mortgage company wouldn't stick to deal and said it had gone on too long and repossessed on Wednesday.
I am in shock and cannot understand. Is there anything I can do? I had a fair price for the house and know they will not sell it for any more.

G_M

buyer paid deposit and was going to exchange with completion this Friday.

If the buyer paid the deposit, presumably Exchange has taken place.

Please clarify.

If that is the case, I believe (not sure) the mortgage lender would have to honour that sale contract.

jeanie49

Buyer paid deposit to his solicitor and my solicitor rang mortgage company to tell them we were exchanging. They said deal was off.

G_M

jeanie49 wrote: »

Buyer paid deposit to his solicitor and my solicitor rang mortgage company to tell them we were exchanging. They said deal was off.

So buyer has not 'paid' the deposit yet. He has simply passed the money to his solicitor to hold on his behalf.

It is paid (given to the seller) at Exchange which it seems has not happened. The solicior will return the money to the buyer if Exchange does not, or cannot, take place.

My home was repossessed on Wednesday.

Do you mean

a) the lender arived at the door, kicked you out, and changed the locks? If so, you must have been aware that was going to happen since (presumably!?) you attended the court hearing at which the lender was granted possession?

or

b) the court hearing was on Wednesday. If so, did you not explain to the judge that a sale was scheduled for Friday? I'm amazed the judge would award possession if that were the case

There's more here behind all this..

edit: just realised you said "They said deal was off".

So your heading is misleading. Your house has NOT (yet) been repossessed. What's happened is the lender has withdrawn an earlier offer.

jeanie49

I understand that. I cannot understand why mortgage company would not do the agreed deal and let the repossession go ahead when they could have had the money on Friday. They had been happy and updated on the delay till then. The sale price was the right price for the house.

Innys1

jeanie49 wrote: »

I understand that. I cannot understand why mortgage company would not do the agreed deal and let the repossession go ahead when they could have had the money on Friday. They had been happy and updated on the delay till then. The sale price was the right price for the house.

Possibly because this sale has been dragging on for 8 months and you're in arrears?

They probably think you're simply stringing them along and, to be honest, I can see their point of view.

jeanie49

They had regular updates from solicitor and signed a deed for the house for new deed on land registry in January so were fully aware of the delay.

Innys1

jeanie49 wrote: »

They had regular updates from solicitor and signed a deed for the house for new deed on land registry in January so were fully aware of the delay.

The above means nothing until the contracts are exchanged - they still haven't been so you aren't committed to the sale. If the contracts had been exchanged, I might have agreed with you.

In the meantime, you owe them shedloads - the arrears plus the balance on the mortgage itself.

I don't know how much in arrears you are but I'd say they have been pretty patient until now.

My advice, once contracts are exchanged tomorrow, e-mail a copy to the mortgage company that day. Otherwise, you stand to lose the house to them.

HouseBuyer77

I don't think they can exchange any more. Lender needs to agree to release the charge for that to happen and sounds like they no longer agree.

OP still owns the house but is prevented from selling it, unless they can obtain enough money to cover the shortful in the mortgage debt.

Perhaps the bank has decided they can get more money from it via a new sale (after all its dragged on for 8 months, depending on where it is in the country prices could have risen a reasonable amount)?

[Deleted User]

Consult with your solicitor, see if a way forward can be arranged.

davidmcn

HouseBuyer77 wrote: »

Perhaps the bank has decided they can get more money from it via a new sale (after all its dragged on for 8 months, depending on where it is in the country prices could have risen a reasonable amount)?

More likely is just that they want it sold, rather than allowing the OP's transaction to drag on for months longer (and possibly fall apart).