How much is cost to be reposessed?

[Amethyst]

Just wondering if it does actually cost you anything. A neighbour is getting to the stage where nothing else can happen. The house is worth more than the mortgage outstanding so there shouldnt be any shortfall and she'll be rehoused by the council....are there any other costs involved in just handing the keys back to the bank ?

[enaid]

Re: How much is cost to be reposessed?

I just read that all cost incurred with the sale will be passed on to the the person being repossessed but that the costs will be added on to the total owed. Any shortfall they can chase for up to 12 yrs, any leftovers and they will be given to the person being repossessed.

[Amethyst]

Re: How much is cost to be reposessed?

Cool. So as long as the bank sell it for over the mortgage amount plus a bit for costs (£5k max I'm guessing) she should be home(less) dry. Excellent.

If she waits till they go to court (again) then what's the likely hood of her getting 56 days rather than 28 as she has a baby due on 18th Feb and three other children under 13.

[Angry Cat]

Re: How much is cost to be reposessed?

http://www.insolvencyhelpline.co.uk/...shortfalls.php

[seduraed]

Re: How much is cost to be reposessed?

i moved three ears ago and the costs were over 7k plus estate agents fees. better for her if she can sell it privatly possibly t one of those we'll buy your house outfits The property will go to auction and is likel to sell a ta large discount possibly up to 30% remember the mortgage co don't care it's all about cash .
Are there benfits she can get? Mortgage interest relief or similar? Most lenders would like to come to arragements if there is any chance of benefit as they like to keep the reposession figures down .\

[enaid]

Re: How much is cost to be reposessed?

I too think she should at least get a valuation form one of the quick sale firms about, at least then she will have an idea if she is going to get enough to cover what she owes one way or another. I would check first though that she is not classed as making herself homeless by doing this and therefore losing the chance of council accomodation.
The house will probably have very little reserve on it at the auction and with all costs going on top it may leave a shortfall in the end.

[Amethyst]

Re: How much is cost to be reposessed?

The problem she has is the joint mortgage holder has gone incommunicado, he has an agreement through the courts to pay the mortgage instead of child support, and hasn't been doing. She is seeing her solicitor next week so they should be able to enforce that...he also though won't agree to a reduction in the sale price - which is too high and was set 2 years ago when the house went on the market. It needs a lot of work and really should only be valued at 20k less that it is. The mortgage company will want to get the £56k back that is left on the mortgage and tbh they will be lucky to get more than £65k, which is £10k under the current asking price.

Funnily enough we're looking for a three bed and have looked at lots of houses in this area recently, but we wouldn't go over £55k on it because of the amount of work it needs to bring it up to a basic standard. (we don't want it btw I'm not trying to get her out so we can buy it cheap lol theres no parking and its two doors down from my current rented house on a ridiculously busy road)