Mortgage repossession shortfall

[Pritchette]

Hi all,

 

I really need some advice regarding my mortgage shortfall. We handed the keys back on the property after we could no longer afford the payments (the mortgage co were not at all helpful during our times of hardship). They would also not allow us to market the property for less than the outstanding mortgage amount so without a hope of selling and a baby on the way we felt our only option was handing the keys back.

 

This was in October 2008 and in May 2009 they had sold the property for £83k less than the mortgage value leaving us with an enormous shortfall to pay back (we have no way to repay this). It seems exceedingly unfair that they offered us no help or advice and have then sold it for so little after we were not allowed to sell in for a penny less than the mortgage!!

 

I have other gripes with the information pack they sent us. The description of the property is not accurate. They say it is located in the least desirable area in our town - this is NOT true! The final selling price does seem to be in line with the valuations they received, but I don't believe the valuations were enough as two similar properties sold around the same time for £45k more than ours! The property needed a clean after we moved out and is described as needing new carpets, but none of this was done to help achieve the best selling price which I've been advised they are duty bound to do (if that's wrong then fair enough). They have put in the paperwork that the low selling price is due to a dip in the market rather than condition of the property. If this is the case then why could two other properties sell for so much more? It seems that this was not researched thoroughly on their part and they have failed to act correctly.

 

Is it worth me trying to prove this?? It seems so unjust and scandalous that a mortgage company can treat us this way!

 

Any advice will be very gratefully received.

[Ell-enn]

Affixed are the CML rules on possession

 

Have they contacted you asking for payment of the shortfall ?

CML rules on possession.doc

[Pritchette]

Thank you. Yes, they are chasing for the outstanding amount.

[Pritchette]

I can't open the document :-/

[Ell-enn]

Can you open this version ?

CML Possession Regs.pdf

[Pritchette]

Yes. Thank you very much.

[Pritchette]

According to the points on there, I don't think they did everything they could to achieve the best possible sale price. Where should I go from here? I can't afford a solicitor so should I contact fos instead?

[Ell-enn]

You need to write to them advising that you are aware of the CML rules following possession and ask for proof that they have complied with the sections you think they haven't (send by recorded delivery). If you need help with a letter please let us know, or post your draft letter here for us to review.

[Pritchette]

That's really helpful, thanks so much. I will draft a letter as soon as I can.

I'm currently waiting to hear back from them regarding our last letter (which was a few queries raised about info in the documents they sent to us). How they reply will determine the contents of this next letter.

In the meantime, are we legally bound to supply them with our income and expenditure?

[Pritchette]

Re my above question - am I legally bound to provide my income and expenditure at this stage? Does anyone know? Many thanks.

[Pritchette]

An update on the above:

 

I received a reply from the lender today regarding our last letter (which outlined our concerns about the re sale of the property). They have said that they are launching an internal investigation and treating it as a complaint.

Should I view this as a good or bad thing or is that a pretty standard practice?

 

Many thanks.

[jaydeebee]

I know this is quite an old thread but does anyone know if the CML possession regs apply to commercial repossessions. I had a commercial property repossessed and sold cheaply which left a large shortfall I now can not pay and now face my home being repossessed as the loan for the commercial property was secured against the commercial property and my home.

I have complained to the LPA receiver but to no avail. They have also sent me a list of charges totally nearly £6000! The property was only sold for 59K so seems disproportionate. They have listed maintenance (what maintenance ?), EPC (which I already had but was not asked for), insurance (I was already paying insurance myself) ...the list goes on. Is there anything I can do. This has left me in a complete mess and on the verge of loosing my home. Should I ask them to justify their expenses?

Many thanks

[Ell-enn]

You should always ask for a breakdown of the balance they claim is owed. Is the mortgage lender a member of the CML ?