Mortgage Prisoner - Topaz

Pedro77

Hi all. I was with the former Northern Rock then NRAM and have now had my loan sold on to Topaz.
I’ve had an offer to sell my home at a figure significantly above Home Report.  However it is below the amount I owe Topaz.  I therefore need permission for a shortfall sale.
My issue is that Topaz seem extremely difficult to deal with. The people I’m allowed to speak to at Topaz can’t supply basic  information to me.  They say I can only speak to them and they will in turn pass details of my queries to “senior management” (senior management don’t speak directly to customers) who will in turn inform customer services, who will call me to pass on any replies.
To date They have never called me back on any of my numerous questions I’ve put forward over the past 4 weeks.
Instead I’m having to call every other day to get tit bits of information.

For example, I’ve been told I could sell the property and credit management will pursue me for the balance.  I’ve asked on what terms and % rate - no reply for over 3 weeks.
I was asked to also fill out a budget planner.  I did this and was told that when I sell my property I will have over £100 left over so they will not agree to any write down.  When I suggested that was irrational as I will still have to pay rent at another property when I sell. The reply was, “that was “senior management’s decision”. 
They also said that that they will need their own independent survey that I will be billed for (fair enough) but when i asked if they could get a re-write from my already independent surveyor (to save me money on a full survey) they refused. I suggested that my surveyors may already be on their panel and asked for their panel list.  This was refused.  I was told “senior management” will not be disclosing the list.  I then suggested that perhaps I could give them the name of my surveyors (one of the largest RICS approved in the country) and then they could tell me if they were on their panel.  Their reply to this was, “you don’t seem to understand, we will not be telling you who our approved panel of surveyors are”.
I’m at the end of my tether with Topaz and due to lack of responses and the time consuming convoluted process of getting information, the reality is that my sale is on the verge of collapsing.
Question is, is this normal? Do mortgage companies normally behave in this way?  Why would a mortgage company refuse to disclose its panel of surveyors, is it commercially sensitive?
Do I have a case with the financial ombudsman if my sale collapses?

MWT

Have you tried speaking to Shelter or StepChange to see if they can help?

I know there were some recent changes to the lending rules that have enabled some of the ex-Northern Rock borrowers to escape to a new lender, not sure if you've looked into this, but I suspect the negative-equity might prevent you doing the same.

How much is the short-fall anyway?

Pedro77

Haven’t tried those agencies but thanks I may call them.
As far as going to another lender, it seems unlikely. Although I’ve never missed a payment the fact there is negative equity will preclude me from benefiting from the new rules.
The shortfall is not insignificant at about 5k
Topaz won’t allow the sale to progress until they carry out their survey, which I agreed to weeks ago.  They asked for permission to pass my details on to a surveyor, who would be in touch, but tumbleweeds.
Even if the survey had been carried out I still can’t progress the sale until they provide the terms under which they would pursue the shortfall.
I find it hard to believe any other legitimate mortgage provider would be so obstructive, to the point where a sale could fall through.

Thrugelmir

You have a legal obligation to discharge the debt owed. Can you raise the shortfall from any other source? 

Pedro77

Completely get that I have a legal obligation to pay the balance. But on what terms. I can’t contract under any terms they wish to impose, I’d be replacing one bad decision made in my twenties with another. Also after looking at their extremely opaque company structure, the way they plough through company directors and the fact 2 leading auditor firms have resigned their services to them, doesn’t inspire confidence I’d be treated as fairly as the original firm I chose to enter legal relations with.

The worry is I go ahead and contract to sell but then see the terms they decide to impose on the balance and then I’m  forced to brake my obligations to the buyer.
Their inability to answer even the simplest of questions is frustrating any chance of clearing the debts owed.

MWT

I would certainly talk to one or both of the charities I mentioned above to get their advice, but it feels like your best chance of a quick path through this is to look elsewhere for a £5,000 unsecured loan on terms you can accept, that way the mortgage can simply be discharged without further prevarication on their part...

K_S

MWT said:

feels like your best chance of a quick path through this is to look elsewhere for a £5,000 unsecured loan on terms you can accept, that way the mortgage can simply be discharged without further prevarication on their part...

@pedro77 Definitely second this.

Topaz would probably prefer it if you were with them paying exorbitant interest rates for as long as possible, so they have no real incentive to get things moving. If you haven't already, you should definitely put in a formal complaint.