Proof of Sale and mortgage shortfall

Gracey23

Hi All.  If a property was sold at auction, will the sale still show up on the history of sales on a Rightmove search? Thank you    Also, do you know if the Rightmove history of Sale is accurate and 100% reliable?  I'm asking as my ex and I handed a house back to our lenders as we fell on hard times in 2012. We purchased the house in 2008. We have been perused for the shortfall after we were told the house was sold at auction. However I can only see our 2008 Sale and then a Sale in 2013 which was at the full value of the property that we took a mortgage out for.  It's not adding up. Any advise or insight would be appreciated.  Thank you 

housebuyer143

Sold prices are accurate as it's taken from land registry data. 
Not all sold prices are listed though, there are a strict list of circumstances where you can have the sale data hidden and it's normally for things like break ups  (where part of the house is sold), below market sales and potentially repossession. 

kingstreet

Repossession sales are specifically excluded from the LR stats.

user1977

The lender should be giving you the details. Or are you asking because you don't trust the info? I think the Land Registry can provide historical data though not sure of the procedure.

Gracey23

Thank you.  We handed the house back so technically it wasn't repossessed.  We were advised that it was sold at auction hence the large shortfall, but aren't they supposed to get best price for it?  This may be why the auction sale of the property doesn't show up. 

user1977

Gracey23 said:

Thank you.  We handed the house back so technically it wasn't repossessed.  We were advised that it was sold at auction hence the large shortfall, but aren't they supposed to get best price for it?

Yes, but auctions are deemed to be a reasonable way of doing that.

propertyrental

https://www.gov.uk/government/publications/price-paid-or-value-information-registration-procedures/practice-guide-7-entry-of-price-paid-or-value-stated-data-in-the-register

eddddy

Are you saying that the bank has told you how much the house sold for at auction, and you don't believe them?

If so, maybe ask the bank for more info, like a copy of the sale contract.

There may be a bunch of fees to deduct from the sale price (the bank's fees, the auctioneer's fees, interest accrued until completion etc),  but the bank should be able to give you a statement showing all those as well.

And if there was a shortfall when it was sold, they may now be adding 11 years of compounded interest to the shortfall.


So it's 11 years since the house was repossessed. I believe that with mortgage debt, the bank has up to 12 years to start a court claim for the main amount, and 6 years to start a claim for interest (in England/Wales).


Have the bank sold the debt to a debt collection company? If so, they might be trying to get what they can before the 12 year limit.

Some debt collection companies are a bit dodgy, so it's worth going through the details of the debt demand, to make sure it's all legitimate.

_Penny_Dreadful

Gracey23 said:

Thank you.  We handed the house back so technically it wasn't repossessed.  We were advised that it was sold at auction hence the large shortfall, but aren't they supposed to get best price for it?  This may be why the auction sale of the property doesn't show up. 

It was repossessed, it might have been voluntary but the property was repossessed.  With voluntary repossession you still remain responsible for all costs until the property is sold.  The costs include mortgage payments and buildings insurance and you only stop being responsible once the property is sold.  The quickest way for the lender to sell the property is at auction and usually this means you receive less from the property compared with selling it yourself on the open market.  Add all that up and it is not surprising the shortfall is greater than you anticipated.  Not forgetting that in 2008 you would have paid top dollar for the property.

GDB2222

Is there a time limit for the bank to collect the debt, say six years? Possibly, twelve?  

I think there may be a better board to ask about that?  It may matter whether you acknowledge the debt, so get advice on how best to handle it before contacting anyone at the bank or debt collectors.