House now repossessed and the full value of the house still being charged?

[transparentspoon]

Hi All,

 

Hope I'm not being stupid with this one but your comments would be appreciated:

 

My house was repossessed in 2009 and, at the time, there was also about XXX months' worth of unpaid mortgage owing. I kept an eye on various property web sites and found out that the house was eventually sold a few months later for about 40k less than the value of the mortgage (this was just after the "recession" hit).

 

After hearing nothing since then I've had a letter through today from XXX solicitors acting on behalf of Lloyds demanding the full value of the mortgage plus mortgage arrears.

 

Now, in my hillbilly, red-neck mind I thought that the property was security for the mortgage, and yet apparently when Lloyds repossessed my house they obviously thought they were entitled not only to get the house back (for free) but also to recover the full amount of the mortgage as well.

 

I'm half tempted to let this one go to court (although no court at all would be fine with me, of course) because there's obviously been some kind of cock-up, or is it me being the idiot?

 

Thanks,

 

TSP

Edited July 16, 2011 by transparentspoon
I iz well illiteratt innit :)

[rebel11]

Thread moved.

[dcahelp]

They can come after you for the shortfall, ie the diffrence between what it sold for and what your outstanding balance was. But not the entire balance outstanding. with my repo my mortgage co chased me for the difference, ie

 

£119,000 ish balance outstanding

£73, 000 house sold for

£46, 000 shortfall,

 

It is the shortfall that I was being chased for, however after going to court recently and showing the Judge that losing our house was just the beginning of a very quick decline in our lives, and that now we just cannot afford to pay the shortfall end of.....

 

Judge was very understanding and wrote the balance off.... yey...

[transparentspoon]

dcahelp - pleased to hear that, finally some good news!

 

My life was pretty much a disaster zone as well when the repossession happened (no job, no savings, cam belt on the car went, wife left me for the carpet salesman...) and the likelihood of me being able to make up the shortfall is nil - the bank knows exactly how much of a mess I'm *still* in financially, maybe they're expecting me to auction my kidneys on eBay or something?

 

Just for the record, does anyone know what would happen if the case went to court in the current circumstances (IE completely the wrong amount of money being claimed?) Do they have to withdraw the claim and issue a new one or can I just make them look stupid?

 

Thanks,

 

TSP