lost the house, now they want more money. please help!

Dylanwing

I would go with the CAB advice, as legally, yes they can do this. Much will depend on your current circumstances and whether you can afford to pay this in the end, although beware, some Companies leave these debts dormant then chase again in a few years, just in case you thought life was getting better! I hope that you (And your family?) are well and safely housed, as that should really be the main concern.
As for loan defaulters increasing costs for others, well 'losses' are factored into almost everything you buy, and certainly allowed for in the cost of Financial Products, so non-payment won't overly worry me, if you genuinely can't afford to pay. Now, if only people could get so worked up about the wealthy and their tax avoidance schemes, THAT is what really costs us all a lot of money each year!
EDIT - Knowledgeman - The average UK citizen also thinks that Banks genuinely try and get close to market price for repo houses. Some even think that certain speculators don't do back-room deals to try and secure these properties well below market value.

KiKi

I'm really quite surprised at the mocking and almost venomous posts which have been aimed at the OP; my experience of this site has been a friendly one up til now.

At no point did they say they didn't understand their home would be repossessed. At no point did they complain about being repossessed. At no point have they said they expect the bank to take the flack; they certainly haven't said they aren't going to pay the additional costs.

All they were asking was whether or not the additional money was legally requested; they hadn't appreciated / hadn't had it explained to them what those costs were.

It was a simple question based on a lack of knowledge about *additional* costs after repossession. The question was answered. I'm surprised, therefore, that people have started implying the OP is thick, lacking intelligence and putting words into their mouth about such as "yet they seem to expect the bank to incur all the costs because of that."

Hope you get it sorted, OP.

[Deleted User]

I agree there is certainly a following of people that believe the bank is always correct, moral and explicitly clear and they attack like vicious derranged super hamsters if anyone has stepped out of line from there super contracts blaming peoples intelligence.

But it is trusting the banks that causes this, when people go in and see a bank or broker and said person says you can afford to borrow 5 million squid, they believe that they can afford to borrow 5 million squid. The bank said i could afford it took my fee aster after fee which it kindly added to is 148% mortgage and said have a nice day. I couldnt afford it so now it want the house and another run of fee after fee after fee after fee...

But because of this family B who earns a bit more has had to borrow a million squid too to get a house to compete with person C who borrowed a million squid without the potential to repay causing houses to be overpriced by a factor of two to three times and the banks to rake in more money from person B while saddling person C with a huge unsecured debt when they have to go back to renting.

redmel1621

I don't see why people are being so hostile towards op, you have no idea what their situation is...
I don't believe op is stupid by any means but I do think it is a shame/mistake not selling it before it was repossessed, the bank do not just take it with no warning they give a few warnings in advance and then have to set a date for the repossession to take place...the advantage to this is that the bank never sell for the full potential as they want a very quick sale also as op has found they shove a ton of over-inflated charges on top (far in excess of standard sellers fees) If it had been sold through estate agent it is usually possible to get enough from the sale to clear the mortgage and have some left over/pay off other debts etc.

This is coming from the voice of experience......

Good luck anyway
Mel x

jamesd

sirmonty16, sorry to hear about your troubles. Yes, it's legal. They are entitled to interest until sold, their legal costs and the cost of sale (agents fees). You'd need to get a statement from them to see what has been charged. Also you might get valuations on the property (at that time) to see if they did sell it for something near to it's actual value, since one of their obligations is to try to do that.

Generally, though, costs and fees do make it possible for a repossession sale to fail to to leave you debt free.

Zulu_Dawn

dunstonh wrote: »

Q1 - You are borrowing £100,000. Which of the following is correct
a - you dont have to pay this money back
b - you have to pay this money back
c - its a gift from a friendly lender for you to blow on Sky tv, 5 takeaways a week and 3 overseas holidays a year.

Maybe it is me but isn't this a really dumb question. Presumably answer c is merely a subset of answer a.

I suggest you could frankly have left answer a out all together giving us the option of just two choices. In that case presumably b becomes a and c becomes b and the correct answer is therefore a.

We could then have a new c to replace your rather inefficient a which could be

c - Don't waste your time answering this question because the person setting the question is clearly a patronising supercilious uncaring twit.

The correct answer would I suggest then be c.;)

ZD

teacup_2

Hi Sirmonty16,
So sorry you are in this position , must be a really horrible time for you. It is hard to stay afloat in this world. Somewhat surprised by some of the posts, tactless replies some of them. We are not perfect none of us

You just have to think things cant get any worse you have had the worst , onwards and upwards. Well thats what i tell myself when life throws things
good luck

dunstonh

Somewhat surprised by some of the posts, tactless replies some of them. We are not perfect none of us

If you look at the responses, you will see none of them are aimed at the OP. Its just a way the discussion moved forward.

c - Don't waste your time answering this question because the person setting the question is clearly a patronising supercilious uncaring twit.

Perhaps the question should have been on your credit applications. Maybe then you wouldnt have got £145k in unsecured debt.

Any of the mortgage advisers/financial advisers will tell you that they have often seen people with financial difficulties who have no grasp of personal responsibility. They could have all sorts of debt going bad but they still go on holiday abroad multiple times a year. Still have pay TV and all the top of the range electrical items with rows of DVDs. They live on the credit cycle. Borrow on loans and credit cards, borrow too much, then convert onto mortgage and rather than learning their lesson they start the cycle again and a few years later you are back to see them because they are in exactly the same scenario.

silvercar

dunstonh wrote:

They live on the credit cycle. Borrow on loans and credit cards, borrow too much, then convert onto mortgage and rather than learning their lesson they start the cycle again and a few years later you are back to see them because they are in exactly the same scenario.

Reminds me of friends. Started off with a 70k mortgage on a property valued at around 150k. spending exceeds earnings and the credit cards come out, then they remortgage and clear the credit cards....

Now their mortgage is 200k and the (same) property worth 400k, in the last 10 years they have remortgage 8 times! They say they are better now; but now need to remortgage to meet the mortgage payments rather than fund the credit cards!

regularsaver1

Unfortunately I have seen people who chose option C, but then say they have no money to feed their children