Mortagae company reports payment defaults even thought they were the cause of the defaults (kind of)

ladaowner55

I throw the keys back to the mortgage company and said send me a bills and I will pay the final bill.

3 years later they said sorry about that we forgot to sell your property. Its our fault and we will pay compo of £200 and remove £36k interest over the 3 years. So I was left owning £25k in the final bill which I promptly paid. All fine and Danny at this point.

However over the 3 years period where they forget to sell my property they recorded non-payments on my mortgage, I challenged this and they said no we refuse to remove these black marks from your credit history.

Question is it worth chasing this with Ombudsman? or are they correct?

TrickyDicky101

If you have the resources available why on earth would you go for voluntary repossession of your property? That does not make sense.

middleclassbutpoor

Surely you are still responsible for the debt until the house is sold. You didn!!!8217;t maintain your mortgage payments so why are you surprised that your credit file is now showing negative data?

ladaowner55

had they sold it within 3 to 6 months I would have expect 3 to 6 month of bad credit history. However they forgot to sell it and said they lost my letter requesting them to sell it but found them 2 and 1/2 years later. So now I have 3 years old bad credit history.

Just want 3 to 6 months of bad credit history

ladaowner55

TrickyDicky101 wrote: »

If you have the resources available why on earth would you go for voluntary repossession of your property? That does not make sense.

Tried to find a buyer but couldn't as the freehold company had gone bust. I handed back the keys and mortgage company got lucky and found someone too buy it.

sparkey1

Throwing the keys back at them does not excuse you from paying the mortgage.


So no I cant see that you have a case re the credit files. You might have had a case about them not selling it.. If they hadn't forgotten to sell it, and they took 2 years to sell it, you would have still been responsible.

financegeek

I think the mortgage company are right on this. surely you must have thought it odd that you hadn't had any contact with them for 3 years? did you not chase them to sell the property?

it was their fault the property wasn't sold promptly, but it was your responsibility to make the payments until the property was sold.

Blackbeard_of_Perranporth

I assume you took advice back in 2012 about the flat?

ladaowner55 wrote: »

In 2007 I purchased a flat for £110k and had a together mortgage for another 11k so a total mortgage of 121k. In the past 7 years I have made over payments of £10k so I still owe £111k. A flat below me sold for £20k last week because of the issues below.

My problem is since 2007 the management company that own the freehold on the ground and do the management on the building have gone bankrupt and the company directory has done a runner to Easten Europe with most of the cash and his company has been declared bankrupt and removed off the companies register.

The other flats in the building have been rented out to drug dealers and scum tenets and it is a living nightmare, so I am thinking of going bankrupt. There appears no other option as Norther Rock will not allow me to rent out the flat so I am stuck living with the drug dealers or going bankrupt.

My question is what would I be expected to pay back to Northern Rock each month if I did go bankrupt? I am single and have no children or any other debt apart from a 7k loan for a car which is currently worth 7k.

Does anyone know the answer? Also how long do I have to keep paying these payments? Is it 12 years?

Blackbeard_of_Perranporth

One search produced this?

https://anthonygold.co.uk/latest/blog/acquiring-the-freehold-from-an-insolvent-or-bankrupt-landlord-1