GE Money Sold House leaving shortfall

[jansus]

The Law Society - Mortgage possession claims

 

I can not see anything in the protocol that covers renting out the property - but I assume you sre going to try and defend the possession anyway? So if you can prove that the renting out is possible and that you will have secured another property for your family and the figures add up then I am sure it is worth making the point . The court can not change the terms of the mortgage but they can ask the lender why they are not considering your request.

 

What is your position with payments at the moment - are you making part payments?

 

Are you paying much less in rent now than you would be if you moved back into the property and maintained payments?

 

Were you actually letting the property without permission before?

 

If you go to the money section /arrears and possessions on this site it will explain what happens if you hand the keys back. I agree the lender will be in a difficult position if you have evidence in writing that you had a definite offer on the property and they refused to let you sell. If they try to sell for less you will have to fight the final figure they demand from you.

 

 

www.direct.gov.uk

Edited August 23, 2009 by jansus

[rippedoff15]

Hi All,

 

Well its all over now, as we are unable to pay the mortgage arrears we have returned the keys by recorded delivery to the lender GE Money, so far we know they have got the keys after confirmation from royal mail but nothing off the lender.

 

their will be a shortfall but as iam bankrupct their nothing and no funds to give them and we have no assets, how long will they take or what action can we take to stop the shortfall

 

cheers

[jansus]

If you see the link I posted above it will tell you what happens after possession. They are obliged to try and get the best possible price for the property by advertising and then auctioning only if necessary. During this time interest and charges will still be accruing.

 

The advice is to keep in contact with the lender. Let them know where you are and ask for regular updates about what they are doing. Let them know you are watching them. I know this is difficult but when they get a final settlement figure they must put this to you. At this time you will confirm your financial postion and let them know you can not pay the shortfall.

 

I know you will want to wipe your hands of all this but the same rules apply really - keep a file/keep it in writing/send recorded letters or emails if possible.

[rippedoff15]

Hi All,

 

Well we have moved out of the house before the baliff turned up to change the locks, we were informed in writing from the lender GE Money that the costs of changing the locks was £438.00 and the court confrmed the baliff date.

 

Well that was 2 weeks ago and the house still has not had the locks changed nor any visits, should we call the lender what happens if the house gets break into and damaged, who pays for the repairs, as we left the house clean and perfect ready to be sold

 

 

any help will be great

[on*the*case]

Ring the Bailiffs office and confirm if they attended the appointment, and if they recall who else attended, locksmith, agent for the lender etc. Did you hand keys to anybody connected with the lender. Its a starting point.

[rippedoff15]

Well just caleed to the house and they have now charged the locks, also very large sign in the window informng the whole world that the house has now been repo. not a nice feeling seeing the sign and the lender are wrong in putting the sign in the front window

 

hey, just now waitng for the letter asking for the mortgage shortfall, iam now discharged from my BR but its lookng like we have to go BR again as we can not repay the shortfall, also the house was broken into and damaged, we took photos when it was empty and now fireplace and kitchen have gone !!!!!!!

 

 

cheers

[on*the*case]

Putting a sign in the window doesn't really help in getting the best price.

Photograph everything you can through the windows including the sign. Write recorded delivery to the Lender informing them of the damage. Find out which agent is handling the sale and send someone for the details/ go on the website, to pose as a buyer looking for a doer upper in your area. Or if going to auction get the details from the website.

[rippedoff15]

Hi, we have taken photo and will be writing today, its no longer on rightmove and not sure which company GE Money use to sell houses

 

can any one help

 

cheers

[rippedoff15]

Hi All,

 

Can anyone give any advice regarding the following issue, we were trying to sell our house towards the end of 2007 and early 2008 but had no joy at all, following an illness we asked the lender if we could let the property until the house sold and the rental would cover both the rent and arrears, however after many letters they refused and take the property. They sold the house about £40k less than the asking price thus their was a short fall of £27k that was in 2008, that was the last we heard off the lender.

 

Following my illness i myself was made bankrupt clearing all my business and personal debts etc and life has slowly got back to normal well nearly, today both myself and my wife had a letter from Optima asking for the £27k in 14 days, i explained that i was bankrupt and as my wife works 16hours thier is no way we could make the payment.

 

I explained that i was bankrupted in 2009 and the lender was stated in my papers, and we wrote to the lender asking for the shortfall to be cleared as my wife cannot pay the stated amount. The guy from optima said shame but they want paying ???????????????? , i have looked when the mortgage was last made which was around feb 2007 can the lender come now demanding the funds ? and what action can we take ? . We have no assets live in a rented house and the car have blown up ( head gasket ) so nothing as far as assets.

 

 

What should we do now, can anyone help at all regardsing this matter

 

regards

[unclebulgaria67]

Get in touch with the insolvency practitioner who deal with the bankruptcy and they should be able to help. If the shortfall should have been included, then this is something for them to deal with.

[rippedoff15]

Hi All,

 

I have checked with my IP and my part of the short fall is within my bankruptcy, however my wife is now being chased my the lenders agent Optima, after speeking to them today and explaining that my wife works part time and can not repay the £27k they hust said so what and they will now take the matter ahead, can anyone help me as i have no idea where to go now, should my wife file for bankrupcy or what would the next best why to end this nightmare.

[bazaar]

Did you have a valuation of your house prior to these scumbags selling it off so cheaply? it might be worth revisiting this with your practitioner to see if there is any way you can hit the mortgage company, because you informed them of your situation and tried to get a decent outcome, but they just swept everything from under you.

Something stinks here, if Optima want to play dirty, then you have to hit back harder.

[rippedoff15]

Hi All,

 

Not sure what action we can take, we lost our house in 2008 following a battle with the lender GE Money we tried to sell the property which was valued by 3 estate agents around the £175k mark, as we had a mortgage of £137k on the house the value once sold would replay the mortgage. The house went on the market, following lots of letters to the lender we were told that the property sold but the lender has never issued any paperwork informing what the property sold for nor any statements regarding the mortgage.

 

We have now this week that their is a shortfall on the mortgage, but again we have not been informed how they have come up the the figue of £27.500.09 ?????? so in real terms the house must have been sold well below the market valuations ie Value of £175k and sold by the lender at £109,000.

 

We did request that to rent the property out and the rental would more than cover the mortgage however the lender refused point blank, and wrote stating the house was purchase on mortgage and not buy to let so they would continue to in action.

 

Can anyone help with any adice in what action we should take in ending this nightmare

 

 

many thanks

[asokn]

I dont think that righteous indignation will count for very much here. What the OP needs to consider is the legal position.

 

It is said that the property was sold at £40k less than the asking price. The property was almost certainly sold at auction so once you take into account the fact that an asking price on the open market is often somewhat more than the property is really intended to be sold for and that a sale by auction inevitably leads to a lower price it may well be that the lender has done nothing legally wrong. However it may be worth considering if a sale at an undervalue has occurred as the lender is not entitled to simply sell it for whatever it likes but has to obtain a fair market value (hence sale by auction being the usual approach as this is by definition a market value sale.

 

Other than that there is almost certainly a clause in the mortgage contract entitling the lender to recover any shortfall but there's no harm in checking.

 

When the lender took possession I assume it did so pursuant to an order of the court. If so, did that order include a money judgment for the balance of the mortgage debt?

[bazaar]

Im not preaching righteous indignation as you put it, youve pretty much stated what I have suggested, so well done. IE, a valuation is a very good indication of an asking price, then if the lender has sold it off at a much lower price, that needs to be brought to the attention of the court. It shows how unreasonable the lender has been towards the consumer. I think this is an important point and certainly something the OP can consider, ( they dont have to use all the info we post)

[unclebulgaria67]

Proper legal advice required here, as to your wifes liability and how much this would be for. If you had some of the money written off in bankruptcy, I am not sure your wife can be pursued for the full £27k.

 

The advice is to not to talk to Optima anymore and keep everything in writing. That way, you can discuss this with a solicitor if they threaten any legal proceedings. Personally I think at the moment, it is just hot air. If they wanted to take this to court, what is stopping them doing this straightaway.

[toddle2u]

Proper legal advice required here, as to your wifes liability and how much this would be for. If you had some of the money written off in bankruptcy, I am not sure your wife can be pursued for the full £27k.

 

If her name was on the mortgage she is joint and severally liable - meaning she is liable for the full amount of the shortfall.

[rippedoff15]

Hi All,

 

Well since we write to the lenders agent Optima Legal on 23rd Feb 2012 and had nothing back until today, they have confirm that i requested information regarding the shortfall in Feb 2012 and enclosed the statement ( only from the secured loan and not the mortgage ) i asked for detailed reports confirming asking price for the property ie sells reports from 2 agents. what fees were charged but all they have sent is the secured loan statement and nothing else. They state they want my wife to reply no later than 12th june 2012 ( 6 days ) detailing a full repayment proposal.

 

Two things it takes them 14 weeks to reply to my request, yet they want information about our payment plans in 6 days ( joke ), not sure what to do now with regard to the shortfall. They were informed regarding my bankruptcy, therefore they state even as my wife only works part time they want the shortfall repaying in full, the have asked for full income details for our household and a full list of assets.

 

Can anyone help regarding the action / which way forward.

 

Regards

[rippedoff15]

What should we do now, we are worried what action they will take coming forward. Can they demand that my wife repay this amount as clearly we do not have the money can anyione help with the following questions:+

 

1, Can optima legal demand my wife to accept the claim and sign forms

2, They are demanding to my wife for her to complete form stating her income and assets, when clearly she just works part time. and her assets are jointly mine not much anyway just general household items, they also stated they want to know ALL our household income can they demand this as well.

3, We asked for information regarding the sale of the house which was sold,

 

IE How did they sell it and which agent

How many agents did price the house to get the value

Their was an outstanding mortgage and secured loan with the lender, but Optima have only sent copy details regarding the loan and not the mortgage nor fees breakdown

 

 

We have also requested a full statement for both the mortgage and the secured loan and if the lender had the account insurued to cover any non payments and to confirm when the last payments were made to the lender, i have also requested a copy of the mortgage contract its self ( signed by myself & my wife ) to check all the small print and if we had any insurance cover .

 

Please can anyone help

 

Regards Very Worried

[sillygirl1]

Tell them your wife is not paying and has no ability to do so - and that she too will file for bankruptcy should they choose to pursue this.

 

I am in the same boat, but with a different lender chasing an alleged £4,500 seemingly made up of a string of various fees - and that is without the second charge company wanting £25,000. I am unemployed so would chose bankruptcy should they choose court.

 

These shortfalls are a nightmare to deal with as the lenders cherry pick obscure legislation and t&cs to try to get money back they already have had - they take the stone and now they want the blood.

 

I would write back stating the following

 

"Dear scumbags

 

You want our repayment proposals in 8 days - well here they are

 

Nothing, nada, nowt, zilch

 

Is that clear enough?

 

No further correspondence will be entered into and any letters will be used as loo paper as we cannot even afford that essential item.

 

Goodbye"

[sillygirl1]

Its all very well asking for information but as we know (and I can demonstrate) they take liberties, taking as long as possible to give US what we want and wanting things PRONTO in return.

 

Don't give them any legal reason to argue back and they will go away and find easier prey - I find you get a flurry of letters and then silence if you do not respond.

 

Had they been in a position to take you to court they would have done so by now.

[unclebulgaria67]

I am guessing that your wife was party to the mortgage and that legally they can pursue her, but that she does not have the means to pay ?

 

What assets does she have in her name ?

 

How have they arrived at the figure of £27,000 ? If they have not provided exact information, as to how this was calculated, write back asking for the information. Just keep the letter simple. Just ask them to disclose full information regarding the shortfall, as you will be seeking legal and debt advice. Tell them that you will not enter into any further communications, until they have supplied the information required.

[rippedoff15]

Hi All, today we have 2 letters firstly Optima legal have wrote still demanding the shortfall payment £27,590.06 again they have not replyed to my letter requesting information relating to the debt. The shortfall was from the main mortgage account and a secured loan both with different account numbers. Today along with the letter from Optima legal we had a letter from Capital Recoveries ? claiming they hold the account but they quote just the old mortgage account number and a different amount £15,414.46 ???? .

 

Not sure what action to take ad we have wrote to Optima legal and had no reply, and who is capitol recoverires please please can anyone help

 

regards

Edited July 19, 2012 by rippedoff15

[sillygirl1]

I would ignore both lots, they clearly are trying to confuse you.

 

You now have a good case to report them for confusing you to the OFT and Trading Standards.

[unclebulgaria67]

I would suggest replying to both. In response to your letter dated xxxxxx, we will not be responding to you, until we have had a reply to our letter to Optima dated xxxxxx.

 

We will not hesitate in reporting this matter to the OFT and SRA as appropriate.