Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Sbotts
    • By Sbotts 16th Apr 19, 6:07 PM
    • 7Posts
    • 0Thanks
    Sbotts
    Mortgage Lender admits failure to notify with notice of repossession
    • #1
    • 16th Apr 19, 6:07 PM
    Mortgage Lender admits failure to notify with notice of repossession 16th Apr 19 at 6:07 PM
    Hi,

    My house was repossessed in 2014. I was not living at the address as I had an agreement to let and mortgage lender had my new address details.

    Put simply, I was in a financial mess and got into arrears. They sent the repossession notice to my old address and therefore I was not made aware of impending court case for repossession. My lender has since admitted their fault, apologised and offered me £250 compensation(!)

    My balance is £34k which is made up of charges, interest and a low sale price. I was not given the right to defend myself in court and they have admitted their fault.

    I have contacted the ombudsman who have taken on my case. Can anyone advise me where to find information relating to “what happens if a mortgage lender does not notify you of repossession hearing.” They have to notify you in writing but the notice went to the wrong address as they did not update their details.

    I simply could not afford my mortgage and I do not claim to innocent in that regards. However, I should have been able to defend my right to try and clear the property myself as well as try to get a realistic price for it.

    Any help or advice would be most welcome.

    Thanks.
Page 1
    • KatieDee
    • By KatieDee 16th Apr 19, 6:13 PM
    • 588 Posts
    • 434 Thanks
    KatieDee
    • #2
    • 16th Apr 19, 6:13 PM
    • #2
    • 16th Apr 19, 6:13 PM
    Do you have proof that you supplied the lender with your new address? How did you provide this? (telephone, letter, online, etc).
    • davidmcn
    • By davidmcn 16th Apr 19, 6:15 PM
    • 10,919 Posts
    • 12,025 Thanks
    davidmcn
    • #3
    • 16th Apr 19, 6:15 PM
    • #3
    • 16th Apr 19, 6:15 PM
    Any claim is going to come down to what difference it would ultimately have made if you had received notice. I don't think missing the opportunity to make a defence which was bound to be futile is going to be worth anything.
    • Sbotts
    • By Sbotts 16th Apr 19, 6:46 PM
    • 7 Posts
    • 0 Thanks
    Sbotts
    • #4
    • 16th Apr 19, 6:46 PM
    • #4
    • 16th Apr 19, 6:46 PM
    Yes, they received notice of my new address which they have acknowledged. They also admit fault and that this was down to an error on their part.
    • Sbotts
    • By Sbotts 16th Apr 19, 6:48 PM
    • 7 Posts
    • 0 Thanks
    Sbotts
    • #5
    • 16th Apr 19, 6:48 PM
    • #5
    • 16th Apr 19, 6:48 PM
    That maybe so however we would never know as I wasn’t given an opportunity to attend. Just to be clear, I would’ve asked for time to sell and clear the property ultimately leaving a lower balance.
    • BoGoF
    • By BoGoF 16th Apr 19, 7:06 PM
    • 4,240 Posts
    • 3,772 Thanks
    BoGoF
    • #6
    • 16th Apr 19, 7:06 PM
    • #6
    • 16th Apr 19, 7:06 PM
    No doubt you want the £34k written off.

    If you were that far in arrears why didn't you put it up for sale?
    • Sbotts
    • By Sbotts 16th Apr 19, 7:20 PM
    • 7 Posts
    • 0 Thanks
    Sbotts
    • #7
    • 16th Apr 19, 7:20 PM
    • #7
    • 16th Apr 19, 7:20 PM
    Great question. I had thought of this but decided to ask to rent it out whilst I went to an affordable accommodation. I was given a permission to let by the lender. All was going well until tenants got into arrears - ironic, I know, and somewhat a taste of my own medicine!
    • Thrugelmir
    • By Thrugelmir 16th Apr 19, 8:50 PM
    • 62,877 Posts
    • 55,845 Thanks
    Thrugelmir
    • #8
    • 16th Apr 19, 8:50 PM
    • #8
    • 16th Apr 19, 8:50 PM
    I would’ve asked for time to sell and clear the property ultimately leaving a lower balance.
    Originally posted by Sbotts
    Weren't you already in communication with the lender regarding the arrears? Late in the day to start making proposals.
    "The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge.”" - Howard Marks
    • davidmcn
    • By davidmcn 16th Apr 19, 8:50 PM
    • 10,919 Posts
    • 12,025 Thanks
    davidmcn
    • #9
    • 16th Apr 19, 8:50 PM
    • #9
    • 16th Apr 19, 8:50 PM
    Great question. I had thought of this but decided to ask to rent it out whilst I went to an affordable accommodation. I was given a permission to let by the lender. All was going well until tenants got into arrears - ironic, I know, and somewhat a taste of my own medicine!
    Originally posted by Sbotts
    Presumably you knew you were in arrears though? Had you discussed them with the lender? Had you taken any steps to market the property?
    • Sbotts
    • By Sbotts 16th Apr 19, 9:38 PM
    • 7 Posts
    • 0 Thanks
    Sbotts
    Yes I was in touch with the lender. Proposals were made but after the tenants left, I couldn’t afford to keep up with them.

    Just to be clear, the house needed to be sold. My point is that I was not notified of the court hearing.
    • davidmcn
    • By davidmcn 16th Apr 19, 9:46 PM
    • 10,919 Posts
    • 12,025 Thanks
    davidmcn
    Just to be clear, the house needed to be sold.
    Originally posted by Sbotts
    Yes, but I think you'd have a sounder case if you could show that you were already trying to sell it and only needed a bit more time - rather than arguing that you would have started from scratch if you had been prompted by the repossession action.
    • Sbotts
    • By Sbotts 17th Apr 19, 10:11 AM
    • 7 Posts
    • 0 Thanks
    Sbotts
    Yes, but I think you'd have a sounder case if you could show that you were already trying to sell it and only needed a bit more time - rather than arguing that you would have started from scratch if you had been prompted by the repossession action.
    Originally posted by davidmcn
    Yes, I may have had a sounder case if the house were already on the market - but at least I'd still have a case. I was not notified of the case, which my lender has admitted and apologised for. Law stipulates I should've been notified of the case in writing but the letter was sent to the security address and not my home address following their error not to update their system.

    My thread is asking if anyone knows or could advise on what happens if this procedure isn't followed by the lender. What are the ramifications? Could anyone point to information or even a company that would be able to advise me as the customer?
    • foxy-stoat
    • By foxy-stoat 17th Apr 19, 10:51 AM
    • 4,006 Posts
    • 2,325 Thanks
    foxy-stoat
    My thread is asking if anyone knows or could advise on what happens if this procedure isn't followed by the lender. What are the ramifications? Could anyone point to information or even a company that would be able to advise me as the customer?
    Originally posted by Sbotts
    I do not think folk know the answer.

    All we actually know is, what happens if the customer doesn't follow the correct procedures of their mortgage agreement - ie not pay......the home is at risk if you do not keep up with the repayments.

    The onus should of been on you to keep in constant contact with the lender. You must of either ceased all communications with them for a very long time or you were in 6 months + in arrears with the mortgage for them to secure a repossession order, advertise it and get a sale as it takes months to sell a property in the UK.

    Still unsure why you would not just move back when the tenants left after evicting them for non payment of rent, no point in paying rent somewhere else and having to try and make payments to the existing mortgage.

    Good luck with your case.
    • dunstonh
    • By dunstonh 17th Apr 19, 11:00 AM
    • 98,002 Posts
    • 66,164 Thanks
    dunstonh
    Errors do not automatically result in redress. Most commonly they result in a goodwill gesture of £250.

    I had a client where the pension provider gave the wrong value for 15 years and the person retired and moved house on that basis. Error was found the value was 1/10th. Pension providers apologised and offered £250. FOS looked at it and said £400. This was mainly as one of the couple died during the process and the other party said it was due to the stress of the pension. The FOS said that they should have known there was an issue and been more proactive in resolving it.

    There are a few issues that you would need to overcome.
    1 - why were the tenants, when there was some, not passing mail to you?
    2 - when it was empty, why were you not seeing the mail when you did your visits to the property?
    3 - knowing that you were having extreme difficulty with the financials, why did you not question the lack of communications?

    An error by one party does not automatically mean you get bucketloads of cash thrown at you. There has to be a cause and effect. i.e If you knew about the repossession order would it have made any difference? Probably not. You had no tenants. it was not up for sale. No indication that you were doing anything to mitigate the losses.

    Whereas, if you had it up for sale at a quick price sale and had interested parties then it would be a very different matter. a) it shows you were doing something to mitigate losses b) time would make a difference c) the repossession may not have been necessary.

    You didn't pay the mortgage. Did the failure to change the address have any impact on the repayments to the mortgage? No. So, the outcome would still have been the same.

    Nobody here has the audit trail of events or the issues and no two cases are the same. Each is considered on their own merits.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Sbotts
    • By Sbotts 17th Apr 19, 2:10 PM
    • 7 Posts
    • 0 Thanks
    Sbotts
    Errors do not automatically result in redress. Most commonly they result in a goodwill gesture of £250.

    I had a client where the pension provider gave the wrong value for 15 years and the person retired and moved house on that basis. Error was found the value was 1/10th. Pension providers apologised and offered £250. FOS looked at it and said £400. This was mainly as one of the couple died during the process and the other party said it was due to the stress of the pension. The FOS said that they should have known there was an issue and been more proactive in resolving it.

    There are a few issues that you would need to overcome.
    1 - why were the tenants, when there was some, not passing mail to you?
    2 - when it was empty, why were you not seeing the mail when you did your visits to the property?
    3 - knowing that you were having extreme difficulty with the financials, why did you not question the lack of communications?

    An error by one party does not automatically mean you get bucketloads of cash thrown at you. There has to be a cause and effect. i.e If you knew about the repossession order would it have made any difference? Probably not. You had no tenants. it was not up for sale. No indication that you were doing anything to mitigate the losses.

    Whereas, if you had it up for sale at a quick price sale and had interested parties then it would be a very different matter. a) it shows you were doing something to mitigate losses b) time would make a difference c) the repossession may not have been necessary.

    You didn't pay the mortgage. Did the failure to change the address have any impact on the repayments to the mortgage? No. So, the outcome would still have been the same.

    Nobody here has the audit trail of events or the issues and no two cases are the same. Each is considered on their own merits.
    Originally posted by dunstonh
    Thank you for the detailed response. It's incredibly helpful.

    I am not looking for bucket loads of cash, far from it. Unfortunately, I could not afford the mortgage and was struggling. At the hearing, I would've asked the judge for time to attempt to find a buyer myself and time to clear the property which would give me a much lower mortgage balance. The judge could've either granted it or declined - we'll never know but I should've had the chance according to the gov.uk website.

    Thank you for your comments on this. Incredibly interesting
    • Thrugelmir
    • By Thrugelmir 17th Apr 19, 5:09 PM
    • 62,877 Posts
    • 55,845 Thanks
    Thrugelmir
    At the hearing, I would've asked the judge for time to attempt to find a buyer myself and time to clear the property which would give me a much lower mortgage balance. The judge could've either granted it or declined - we'll never know but I should've had the chance according to the gov.uk website.
    Originally posted by Sbotts
    Read your mortgage contract. The lender was only seeking the remedy contained within following your default. Odds on that they followed due legal process. The fact you weren't living there. Nor seemingly go to even collect the mail suggests you had little time for the property.
    "The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge.”" - Howard Marks
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,309Posts Today

7,029Users online

Martin's Twitter
  • Have a great Easter, or a chag sameach to those like me attending Passover seder tomorrow. I?m taking all of next? https://t.co/qrAFTIpqWl

  • RT @rowlyc1980: A whopping 18 days off work for only 9 days leave! I?ll have a bit of that please......thanks @MartinSLewis for your crafty?

  • RT @dinokyp: That feeling when you realise that you have 18 days of work and only used 9 days of your annual leave! Thanks @MartinSLewis h?

  • Follow Martin