Possibly lied to by Mortgage Advisor - ended up in repossession. Do I have a case??

[ANNALH]

Hello everyone,

 

A few years ago i bought my first house with my then boyfriend. I didnt know what to expect or what to do so left it all to our mortgage advisor (we just used the one at the estate agents who were selling the house) and our solicitor.

When we bought it we had the survey done and the mortgage advisor phoned to tell us everything was ok except for the roof would need serious repair in the next few years but it was nothing to worry about in the short term. We took her at her word and bought the house.

Less than 1 year later me and boyf split up and he moved out leaving me to pay mortgage and bills on my own, to top that I was then made redundant...

The inevitable happened and I fell into arrears with the mortgage so decided I was fighting a losing battle and put the house up for sale. I had a buyer almost immediately but then the problems started....they were told the roof was in serious need of repair and so they pulled out. The house was still up for sale and people still seemed keen to view so i didnt worry. I got another offer and i was thrilled, until they got a survey done. The roof again. Alarm bells started ringing as the letters from the mortgage company kept coming, threatening court action, threatening reposession. Another offer came and went and by this time i had had enough. The mortgage company got a hearing date set very quickly so i decided to look for a small flat to rent and move out with the intention of simply handing the keys to the mortgage company and telling them to sell it.

I had problems with finding a flat to rent because of my poor credit by this time so when the hearing date came in August 2001 I was still living at the house.

I explained the problems I had had to the Judge and the Mortgage Companies Solicitors and told them how hard i had tried but it didnt seem to make a difference.

I was sitting there, first time in court, on my own, a scared 21 year old girl and nobody even tried to make me feel at ease in the situation. They gave me 28 days to move out!

My house was repossessed in August 2001 and I am still really angry.

I feel cheated, lied to, taken advantage of. It is eating away at me whether I should have done something, I was never given a copy of the survey when we had it done. I didnt see for myself what it said, how the warning was worded, wasnt given a fair chance to decide whether I really wanted to buy a house that needed extensive repair. I dont know if I am just clutching at straws or if someone really should be held responsible. After all, how much can a roof deteriorate in 12 months??

 

Any help or advice would be greatly appreciated.

 

Many thanks.

[elsinore]

Hello ANNALH, I think that you should try to not rock the boat until at least August 2007.

 

When the Mortgage Company repossessed your house they will have sold it, as quickly as possible, for a knockdown price. Bearing in mind the roof problems, this means the sale price could have been even lower. If the proceeds from the sale were less than the outstanding mortgage, that would have left the Mortgage Company with a deficit. You can be held liable for this sum for up to 12 years after the repossession.

 

There is a protocol, which many Mortgage Companies agreed to, that such debts would not be chased after 6 years, hence August 2007. It is not uncommon for lenders or their DCAs to come out of the woodwork just before the time limit and call in the debt.

 

Let's hope that this does not apply to you, but you might want to think again about reminding them about what has gone before.

 

Elsinore

[ANNALH]

Hi Elsinore,

 

I had a look at the redemption statement and they did charge me for repairs so I do not owe them anything. The price they sold the house for was very good but I believe they added on loads of 'admin' charges in order to make a deficit which I then paid off.

[elsinore]

Well, that's good! Nothing to fear from that direction,then.

 

I am not competent to offer any advice on your original question, I suppose it will all hinge on being able to come up with evidence. Looking at the chronology of your story it seems that you purchased the house more than six years ago. It might be that the Statute of Limitations comes into play, but I don't know if it applies in cases relating to mortgages/house purchase. See if you can attract Zooman's attention to your post, he will definitely have some advice for you.

 

Elsinore

[gizmo111]

Well, that's good! Nothing to fear from that direction,then.

 

I am not competent to offer any advice on your original question, I suppose it will all hinge on being able to come up with evidence. Looking at the chronology of your story it seems that you purchased the house more than six years ago. It might be that the Statute of Limitations comes into play, but I don't know if it applies in cases relating to mortgages/house purchase. See if you can attract Zooman's attention to your post, he will definitely have some advice for you.

 

Elsinore

 

and zootscoot who is good on land law

[zootscoot]

Surveyors acting on behalf of a mortgage company do owe a duty of care to the purchaser of the house, however, as they have pointed out the defect they are unlikely to be in breach of duty. Simple mortgage surveys are not expected to be as fully comprehensive as a structural survey. Also as Elsinore points out any action is likely to be time barred. The action here would be in tort law not based on the mortgage so the extended time period would not arise. Unless you could establish that the damage was latent, although as this has been pointed out to you this is unlikely to succeed.

 

 

There may possibly be a claim for negligent advice from your mortgage advisor, although again they have actually pointed out the defect to you and the same problems exist with the Limitation Act.

 

Also your solicitor should have brought the matter to your attention and explained the risks particularly as you were young and vulnerable being a first time buyer.

 

Its easy to say with hindsight but always choose your own solicitor and mortgage advisor rather than those connected to the estate agent, although I'm sure your much wiser now and its a shame you had to find these things out the way you have done.

 

It may well be worth looking into some of the charges by the mortgage company and trying to claim those back.

 

Hope this helps

 

Zoot

[Guest Zooman]

I will not repeat what is above, it is SUMO time and chalk it down to experience.