GE Money Sold House leaving shortfall

[rippedoff15]

Today we have had a letter from a company arranged by G E Money, NCI Investegation to sort out the morgage repayments, I have arranged to payment scheme, we have put tennants in the house now so rent will go to the lender and we top it up as well. But why would the lender arrange NCI ? and should we meet them at the house. We wrote to GE Money asking for consent to place a tennant they confirmed over the phone but not in writing as yet.

 

What action can NCI take ?

 

 

Cheers

[Markiemark1]

They can't "take any action". They will be seeking to talk to you about income/expenditure etc etc and putting forward a proposal to GE with regard to a payment arrangement. Having said that sounds like you're pretty sorted. When you say "topped up" have you got a definite proposal to give to GE and how long would it take to clear the arrears.

[rippedoff15]

Hi All,

 

We are currently trying to sell the house with local agents but having no luck at present, we have been looking at the scheme GE Money going doing to help people ? they call it the AVS Scheme which means Countrywide Propperty help market the house to sell at the highest price.

 

We have had new valuations completed and the house has dropped from £195k to the lowest £145k but should sell at £152k so if we add up the mortgage secured loans we will have s shortfall. We have been requested by GE Money to confirm some information and pay for extra valuations and what we doing to repay the shortfall.

 

I myself was made BR in Feb 09 so the mortgage company know they will not be able to chase me for the short on the mortgage or the joint loans but my guess is they will chase my wife, and clearly she is unable to pay at this time, however they did state they may write off the shortfall depending on the value.

 

Has anyone been is this way regarding mortgage & loan shortfalls and what action can we take to aviod repaying the shortfalls as we clearly have no funds or house

 

 

cheers

[rippedoff15]

Hi All,

 

Where do we start ! following a fall last year and unable to work and not paying our mortgage the lender took us to court and got a possession order over the house, we joined the scheme that the lender is running to sell the house ( AVS ) and countrywide property & local agent are marketing the property, however the selling price of £160k is the highest within 5 miles and their is a house in the same street on the market for £130k thus our house has not sold.

 

The house has secured loans on it

 

1, Mortgage £131k & 2nd charge £21k

2, Welcome £13k

3, RBS £4k

4, Barclays charge for £17k

5, Charge by the OR

 

We have had an offer today of £137k with the buyer having funds in place, but this leaves a hugh mortgage & loan shortfall the RBS loan & Barclays are in my name only & included in my own bankrupty but the welcome is in joint names. we have asked the lender to write off the shortfall but not had a reply yet.

 

We were thinking it may be better just to inform the lender that we will be leaving the propertty at the end of June 2009 and send the keys to them lender by recorded mail. But we are not sure which way would be better

 

1, Sell the house at £137k if the lender GE Money will agree

2, What will happen to the other loans can they stop the sale

3, Barclays currenlty have the charging order can they stop the sale ?

 

If we sell their are fees to pay ie estate agent,solicitors etc will the fees be taken from the sale price which means the lender gets even less, we are having sleepless nights and do not no which way to go

 

 

Any help would be great

 

cheers

[bach]

Bump

[jansus]

Personally if the lenders will agree to the sale at 137k I would try and go ahead with that - then negotiate about the shortfall after . If the house is handed over and empty the value will probably drop further and you will end up owing more. One step at a time. If you have no money they can not get back the shortfall untill your financial position improves at some time in the future. Or as you say you may have to look into other options. But IMO keep as much control over the sale figure as you are able and keep the property occupied if possible.

[GLADSTANES]

Please remember that just because you give back the keys it is not the end of the matter.

 

You will still be liable for all monies secured on the house.

 

I would be inclined to start negotiating hard with all interested parties.

 

Each lender would rather have some money now than risk waiting for a bit more in the future.

 

It would seem you are in a position to offer each lender about 75 percent of what you owe.

 

Who are the OR?

 

Regards

 

Gladstanes

[rippedoff15]

The OR is in Chester they are not intrested as their is no funds, the amount of £187k is the total amount outstanding. However £30k are charges in my name and iam BR, we have wrote the the main lender who informed us they get the cash first and their will by nothing for the rest

 

their will be a shortfall as well of £25k to the main lender, we are seeing our solicitor next to try to sort it out, we just want to sell the house asap before it drops value

 

do i write to each lender regarding the sale or ask OR to sort it out wiht our solicitor

 

cheers

[jansus]

Personally if you have a solicitor I would use their help.

 

You are correct the first charge will take what they are owed and the second charges will get no funds. I would keep very meticulous records of what happens at this stage as if you have an offer and they refuse it and then take possession and sell it for less then you may have some redress about what is owed.

 

That may seem irrelevant now - and it would be if the debt is written off - but in theory they could still come back to you for monies owing for 12 years if your circumstances changed ( but not if you are BR I guess)

 

Do you have accomodation to move to if the sale goes through?

[Dodgy Geezer]

Let them repossess. Do not hand the keys back. The council will not help if you make yourself voluntarily homeless.

 

Once the sale is completed and the first charge is paid off, or partly, all second charges become unsecured.

 

ALL outstanding liabilities then become part of the Bankruptcy if you have informed the official receiver of the debt.

 

Chances are the receiver will then offer your creditors £0.001p as full and final. You are then released from ALL liability on discharge.

 

Sleep Well

[GamekeeperToPoacher]

Please take care!!

 

It is all well and good Dodgy saying let them repossess but the charges etc are HORRENDOUS.

 

Sell for as much as you can get then worry about the remainder later.

 

I have seen in the past houses virtually given away as the original mortgagor has guarantees in place for the shortfall.

 

The charges that are made against the house are for, insurance, security, selling, marketing, legals and whatever else they can think of.

 

In my opinion sell and sell fast.

GK

[jansus]

I agree - that IF you think any part of the remaining debt will not be included within the bankruptcy ( a subject I am not familiar with) you should try and sell if possible.

[rippedoff15]

Hi All,

 

We have been trying to sell our house since feb 07 and nothing at all the value has dropped from £185k and now at £150k currently we have around £165k to GE money plus charges. We have had an offer in writing of £135k from a buyer with funds in place, we have wrote to GE Money asking them for consent to sell the house to avoid costs, but so far they have not confirmed nothing.

 

I have spoken to my solicitor who can not do anything until the lender wrties confirming the sale can go ahead. As iam BR and my wife works part time we have asked them to write off the shortfall but have not written back as yet.

 

If the house stays on the market the value may drop again and costs and interest keeps on going up just adding to the loan. we feel the offer is fair in todays market and a house in the same street has also been reduced to £130k thus making it hard to get a sale at over £150k and if the house went to auction it may sell less than the £135k

 

what can we do now !!!!!!!!

 

cheers

[rippedoff15]

HI All,

 

can anyone help, we have got a buyer after 12 mths to buy our house but it leave a shortfall, the lender GE Money have 1st & 2nd charge and sale will leave a shortfall of around £20k.

 

but so far the lender has not confirmed anything regarding the shortfall and we need to exchange / complete the sale asap. can we sell the property and sort the shortfall later as the buyers are waiting, the house prices in the same street are selling for £130k and we have got a buyer at £140k great.

 

can the lender refuse to let us sell the property ? and if it stays on the market the interest go`s up and charges go up, thus selling now will fix the shortfall but the lender is taking their time.

 

we have wrote 3 times confirming that we are unable to repay the shortfall dye to myself unempolyed & BR and my wife only works partime but they are not helping and every minth costs are added.

 

the main question we sell asap or not and if the lender refuses and the houses remains unsold this will costs ££££££££ in charges and the shortfall will just increase, also if the house is sold at a property auction by the lender will they have to sell over the offer we have had already but again by putting the house to auction is just going to add more costs again making the shortfall even higher

 

we are now so fed up and not sure were to turn, any help would be great

 

cheers :mad::mad::mad:

[nuke em]

yes the lender can refuse to allow completeion without an approved payment plan for the 20k, if you had more time, you could go to court getting an order forcing the sale, but that would take time i think!

 

write to them holding them resonsible for any further shortfall to their negligence here and also point out that they are failing in their "duty of care" towards you, the borrower

[rippedoff15]

We have wrote to the and sent it by recordd delivery but still no reply, did get hold of the lady tonight but she informed me the following

 

We signed up to the AVS selling programme with GE Money which means Countryside appointed a local agent to sell the house that was Oct 08, in feb 09 i was made BR but the OR was not looking at the house for the following 1, their is no funds within the property & 2, the house is in joint names.

 

GE Money called today stating they have charged their policy and if you are BR you do not / are aloud on the AVS programme ? they informed me tht they would spoken to the solicitor regarding the sale ( they appointed the solicitor as we were on the AVS programme )

 

Yet another month has gone and more charges just adding to the shortfall we are now £12k in arrears and its getting higher, they also informed me that if they refuse the sell and can put the property to auction, however i then informed them that they must sell the property higher than the price which we have already got a buyer is this correct, but if they refuse the sale now the shortfall may increase also the outstanding charges will increase. its madness if they refuse all it will do is increase the overall debt.

 

If they refuse the sale now can we stop the interest / charges ????? or take action against the lender

 

any feedback would be great

 

cheers

[rippedoff15]

Hi All,

 

We own a house which is in neg value to the value of £50k now and can not sell it as the valuations from new buyers is alot less due to the housing slow down, iam currenlty BR and the house is in joint names with my wife, we asked the lender if we could relet the house out for 12 mths to see if the house value increases to avoid the shortfall but were told NO , so we are now unable to move forward as its empty and we can afford the repayments.

 

We are currently renting my sisters house long term so we have a roof over our heads, so we were thinking if the house we own if already in neg value is it better to send the keys back now and let them sort the house sale out, we had an offer but the lender refused to confirm the sales due to the neg value / shortfall. therefore they should not be able to sell even cheap than our first offer as this maybe breaking the law.

 

The property had tennants in it which have left so their is no payment for the mortgage and the lender refusing consent to rent it out stating the mortgage is not a buy to let but we could see a broker to change the motgage type haha as iam BR this is 100% no chase

 

the lender is now just adding interest after interest so if we send the keys back now this will help avoiding extra costs or will it ???????

 

 

cheers

[jansus]

Handing the keys back will not stop them ading interest. If you have had an offer on the house and they have refused to let you proceed then make sure you keep a paper copy of that offer as if they sell it for less later you can bring this up in court.

 

In normal circumstances I would say try and keep in control as much as possible by trying to sell yourself - but that is exactly what you have done and as the property is empty then it will probably suffer form maintainance problems if it is left too long.

 

A couple of questions - Do you still have th property insured and have you told the insurer it is unoccupied?

 

If you were able to rent the property out would it cover the mortgage payment?

 

There is a protocol that the lender has to follow when they do take possession and I will see if I can post a copy.

 

Have you had any court hearings for possession yet?

 

Does not the house sale become involved in the bankruptcy?

[rippedoff15]

Hi, We have still got the house insured at the present time, if we were able to rent the house out the rent will cover both mortgage and the secured loan and even towards the mortgage arrears, however the lender has refused their consent to let the house as the mortgage is not the buy to let type. The lender has already got a posssession order over the house but not applied for repossession as yet.

 

We have got all the paperwork relating to the offer which states price details etc etc, with regard to the BR the house the OR was not interested as the house has no funds within it and as its in joint names.

 

we just do not know which way to go regarding the house now, its dropped value so their will be a shortfall but its madness the lender will not let us rent it out to avoid this shortfall.

 

cheers

[jansus]

Well the only thing I can say is that the possession is not up to your lender it is up to the court.

I dont believe that they could not give you permission to rent out if they wanted to.

I would try one last letter setting out all the financial advantages of you letting the house out or selling it at the price you have been offered. Make it clear that if they end up re-possessing the house and then selling it for a lesser amount than you have ben offered you will be using the evidence you have to query any shortfall.

 

Are you making any payments at all towards the mortgage?

 

Is your reason for leaving the house to do with your drop in income or have you had to move because of employment?

 

If you want to try a letter you can pm me and I will look it over for you.

[Rorschach]

"I dont believe that they could not give you permission to rent out if they wanted to."

Mortgage companies will often write in to the terms and conditions that you can not let the property without their permission. It is common practice and legal.

However, you would expect them in such situations to take a reasonable approach. Rippedoff15 - I am presuming that you offered to pay the monthly instalment whilst the property was rented out?

[rippedoff15]

Hi, yes at present the mortgage is £545.00 secured loan £165.00 and the rental plus topup will be £1000.00 per mth, even pying this amount the lender is refusing to consent to the rental. but by refusing is only creating a shortfall now, also by ebting the house out we could in fact keep it as the payments will help clear the arrears and keep up current payments.

 

we have wrote again asking for consent but iam sure the lender will say no again, but not sure what we can do now.

 

cheers

[jansus]

"I dont believe that they could not give you permission to rent out if they wanted to."

Mortgage companies will often write in to the terms and conditions that you can not let the property without their permission. It is common practice and legal.

However, you would expect them in such situations to take a reasonable approach. Rippedoff15 - I am presuming that you offered to pay the monthly instalment whilst the property was rented out?

 

 

I agree with your comment - in that normally buy to let mortgages are more expensive and have diffrent restrictions and they put the clause in to stop lenders taking advantage - however the BS I used to work for had those clauses but still had the discretion available to draw up temporary permission to rent out if there were extenuating circumstances. There would obviously have to be improved insurance and other precautions taken to protect their security.

[tembo]

That is a ludicrous situation. You have found a workable solution to the problem and the only thing stopping you is the lender's refusal to consent to letting. I don't think the court would think much of that.

[rippedoff15]

Hi,

 

Again the lender GE Money have refused again after we have pointed out the benefits of renting at this time to avoid the mortgage shortfall, we have been informed the the estate agent that the property will have to be dropped again in price, and the lender has now asked if we wpould like to give the house up now !!!!! it seems that they are just like to take houses.

 

We have been trying to sell the property but no joy at all, which ever way we look their will be a shortfall at todays market prices, if they go to court will the judge just let them take the property even if we have a way forward in renting it or is it better to let the house go

 

cheers