House Repossessed + £96k debt - Update

silvercar

bryanb wrote: »

I only read your first post, but noticed that there was a clause in your contract you were "unaware of" Why? Do you not read contracts before signing?

Aware of the clause or not, people don't usually plan to get into mortgage arrears within 6 months of taking a mortgage.

Kez100

What was the house worth in 1989 when the 50k mortgage was taken out?

(I am doubting its 85k worth in 1994 as that is when we moved here and the market was dire at that time, absolutely dire)

silvercar

According to the Nationwide statistics house prices dropped slightly between 1992 and 1994, so a value of 62.5 would have dropped to 61k rather than increased to 85k.

In fact between 1989 and 1994 prices dropped by 20% (national figure), so assuming the 50k remortgage was a high LTV it is not surprising that the property sold after repossession for 50k.

Unfortunately 1994 probably marked the low point in house prices, after that recovery was speedy.

homer_j_3

Whilst this may not be liked by everybody, there is proven law that may allow you to actually take legal action against your lender and actually succeed in getting something back out of this.

Access to Justice laws would mean that you could get legal help for free.

payless

H.. haver you crossed to the " other side "

homer_j_3

No I am still alive lol

redimp98

House repossessed for £50k is used to pay off the mortgage balance of £50. Amount owed = zero.

silvercar

homer_j wrote: »

there is proven law that may allow you to actually take legal action against your lender and actually succeed in getting something back out of this.

Can you point to where the lender have acted illegally?

I did wonder about the duty of the lender to get the best price in the interests of the borrower, but then the house price statistics suggested 50k may be a more reasonable price than OP was suggesting. In any case a repo in 1994 may be before current guidelines.

homer_j_3

There are a few areas this could have happened. Some I am aware of and some that I am not to be honest.

The ones that I am not aware of is purely to protect the company that offers this service as I believe this is the "biggie" laws would mean that they lose commercial advantage.

The laws that I am aware of are to do with hidden commissions and also flawed contracts. The information and research carried out by this company state that there is a very good chance that any house repossessed in the early 90's will have been done so illegaly due to laws of our country and as a result, there will be justice for the borrower as such.

Now, I appreciate that you may want to know the exact ins and outs but unfortunately the company doing this has to protect their investment and whilst the service is free to clients, Access for Justice laws allow them to claim their income (which have been reasonably set inline with the work other companies do of a similar nature) on top of any successful claim. They also have insurance to claim against the unlikely event of loss.

It really is difficult to go into every detail on here as you will probably have more questions with every answer that I give but hope you realise that my time on this site has been to help people and that is what I continue to do.

Just to add, these laws are nothing new - The new thing about it is that people can now get legal help with this with a solicitor who can argue these cases with conviction of proven case law. Where as lenders have relied on the fact that people could not afford the expert knowledge of a solicitor.

*MF*

@ ekimnas

I am posting the link below - not in the certain knowledge that it will apply by any means - but in the hope that that those involved may be able to point you in a direction that may help, even if they cannot::

http://www.barprobono.org.uk/