Marital property has been repossessed

GDB2222

BeingMe said:

There’s been some developments and I’m not sure what to do next.

Somebody contacted me having got my name from a letter at the house. She was looking for more info because the estate agents couldn’t tell her anything, including whether the garage was part of the title (it is). I could tell she was very keen on the house. 

I hadn’t realised this would happen but they’ve published the offer that’s been made (I assume from the person who contacted me). It’s for £168k. This is a very low offer but due to it being a repossession, it will be accepted unless another offer is made. As I mentioned before, the smaller house on the end is on for offers over £170k and Zoopler have revised the valuation to £190k (from £210k) which gives some context.

I’m thinking about putting in a higher offer with the hopes that they will revise their offer upwards. It’s a risk but at this stage, I’m unlikely to see what I’m owed. WWYD please? 

Clearly, putting in an offer, or better still  getting a friend to put in an offer, does not commit you to anything. Putting yourself first, what do you have to lose from putting in an offer?

GDB2222

BeingMe said:

Thanks for the replies. I think this is the only offer that’s been made, no others have been published.

if I were to put in an offer, what would I need to show (eg. mortgage offer) or would they just take my offer? My hope is they’d offer more as a result. 

You'd need to show that you can raise the money, ie mortgage in principle plus evidence of the deposit. 

anselld

BeingMe said:

Thanks for the replies. I think this is the only offer that’s been made, no others have been published.

if I were to put in an offer, what would I need to show (eg. mortgage offer) or would they just take my offer? My hope is they’d offer more as a result. 

What are you going to do if your bid wins?  You will have to confess to it not being a serious bid and then they will revert to the existing bid anyway.  It is tantermount to shill bidding, probably not illegal but definately unethical.

If the property is genuinely worth more then someone will come along with another serious bid.  That is why they advertise as they do.  It will find its true market value which will inevitably include some discount as a repo.  If that doesnt cover your charge then it is back to the drawing board.

GDB2222

I tend to shy away from giving ethical advice, when a practical question is being asked. I expect that the op has thought of that already. 

BeingMe

It seems I am nearing the end of this saga. The property ended up selling for £171k by a different buyer and I discovered today from the EA that it completed last week. I think the EA was sympathetic but they couldn’t give me any info. 

I’m not sure where to go from here if anyone can advise please? 

GDB2222

I assume that you write to the mortgagee in possession and ask them to account for the £171k, plus remind them that you are a charge holder that ranks below them. 

housebuyer143

If you have a legal charge on the property then the title deeds will reflect your position and the bank will legally be required to pay you if there are any proceeds left after the other charge holders ahead of you are paid. 

Did you check if your charge is on the property title deeds?

BeingMe

GDB2222 Thank you, I didn’t think of doing that since they’ve refused to discuss anything with me via phone so far. The lender is a specialist who deals with poor credit so not a mainstream bank.

Housbuyer, thanks, the bit I’m not clear on is when and how the money is distributed following the sale. My worry is that there isn’t enough to pay all the COs (and I understand I’m at the back of the queue) but that I won’t be told or that I can’t find out.

I have LR alerts enabled on the property so I got one of those and a direct email from LR confirming registration of the CO but I didn’t download the new title. 

housebuyer143

BeingMe said:

GDB2222 Thank you, I didn’t think of doing that since they’ve refused to discuss anything with me via phone so far. The lender is a specialist who deals with poor credit so not a mainstream bank.

Housbuyer, thanks, the bit I’m not clear on is when and how the money is distributed following the sale. My worry is that there isn’t enough to pay all the COs (and I understand I’m at the back of the queue) but that I won’t be told or that I can’t find out.

I have LR alerts enabled on the property so I got one of those and a direct email from LR confirming registration of the CO but I didn’t download the new title. 

I recommend it do. It's only £3 from the land registry site and you will see everyone who is before you. Doesn't help with whether you get anything, but at least you know where you are in the list 

BeingMe

I have the title from before my CO - the order is the mortgagee, his divorce solicitor, then the council has two COs and I’m last in line. I think the current title would reflect the new ownership - the sale completed last week.