House being reposessed in 56 days

Nick4444

Hi, My house is being repossesed in 56 days. I have an outstanding mortage of £360k and the house is valued at around £650k.
Should I not be able to settle the debt in the agreed timeframe, I take it the mortgage company can sell the house to recover their funds.
My question is. would they sell for the minimum amount to cover the debt, or would they go for a higher figure.
If a higher figure, would I receive the difference between the debt and the sale price?


Hope someone can help.


Thanks

sal_III

Why don't you take a new mortgage to repay the old one, or sell the house yourself?

[Deleted User]

If they sell for more than the outstanding debt, you will get any surplus.

However, they will be looking to move it quickly so will be very unlikely to realise the sort of price you would get if you sold under normal circumstances.

ACG

They have an obligation to sell it for as much as they can, but that does not mean they will sit on it for 6 months in order to hold out for the best price. If they get an ok offer (which may be less than you would hope to get) they would probably accept it. However, they would also add their costs and legal fees - which would likely take up a good few thousand.

Why not sell it yourself? In 50+ days you would not be a million miles off having a completion date. The lender would hold off for the sake of a week or 2 if they can see a sale is well under way. It means you do not have a repossession on your file.

Nick4444

I wouldn't be able to secure a new mortgage due to my age,
The house is on the market but doubt it will exchnange/sell in 56 days

Renegadecrab

You could easily sell it in that timescale but obviously price it competitively and below similar properties on the market. It is likely they will sell it below £600,000 because most buyers will make offers knowing it is a repossession anyway.

The bank will get their own valuation and usually ask for a market value and also a sell in 2 and 8 week value as well.

If it is potentially worth £650,000 then list it at £599,950 and you will be much better off than the bank selling it, then stipulate to any buyer a 28 day exchange of contracts. Make any agent aware of this requirement so they can be upfront with buyers. If it slips by a week then it is fine but you just need to focus a buyer on aiming for that 28 days.

Nick4444

If they sell for a resonable price, Would I receive the diff between the debt and sale price less their fees.

davidmcn

Nick4444 wrote: »

If they sell for a resonable price, Would I receive the diff between the debt and sale price less their fees.

As above, yes.

sal_III

Nick4444 wrote: »

I wouldn't be able to secure a new mortgage due to my age,
The house is on the market but doubt it will exchnange/sell in 56 days

Everything sells for a price, the cheaper it is, the faster it sells. The problem is that you probably left it for too late. Should have worked on selling the property much earlier than with 56 days impending repossession. Any potential buyer will smell the desperation and might decide to wait it out until the bank puts in on the market, at likely lower price.

Nick4444 wrote: »

If they sell for a resonable price, Would I receive the diff between the debt and sale price less their fees.

You will get the difference after the mortgage is repaid and the bank costs for the repo and sale are covered. With such a large margin the bank will look to sell quickly at a discount. Although they have a duty to sell it at the best price "best" is open to interpretation.

getmore4less

How have you got to this stage,

Repos do not happen quickly.

Lenders will work with you if are actively trying to resolve.

Nick4444

Too long a story......suffice to say it's a bad situation.