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OUr house was repossessed last year and was sold for £75,000.00 on 1st February this year, I have now discovered that it was then auctioned for £89,000.00 in exactly the same condition as we left it on 16th of February! Surely this means that the mortgage lender did not try to get the full value of the property? We have been left with debt from a secured loan on this property, so I was wondering if there is anything we can do about this?
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Tags: arrears, auction, bailii, bank, calculations, charges, consumer, costs, court, creditors, debt, debts, depressed, dispute, employee, estate, finance, financial, guidelines, halifax, happened, help, housing, insurance, jet, judge, law, legalbeagles, lenders, loan, money, mortgage, mutual, penalty charges, privately, property, repossession, sar request, subject access request -
Re: Urgent advice needed!
I dont think there is anything you can do unfortunately.
The house is only worth what someone is willing to pay for it, as harsh as it may seem. And if it was initially sold at auction for £75k, then thats what it was worth.
I may be wrong though, and someone bigger and cleverer may come along with some more helpful advice :okay: -
Re: Urgent advice needed!
I'm afraid the mortgage lender only wants the money from the sale to repay what they are owed, they don't want a property. They are not estate agents and don't have an obligation to get the best market value for you. They want a quick sale and so they offer the property at a low price.Comment
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Re: Urgent advice needed!
I do sympathise though, it is bad enough having your home repossesed, but the fact the sale did not clear the outstanding debts is galling, what is the point of selling the property if it did not cover the amount outstanding? Makes me wonder where the logic isComment
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Re: Urgent advice needed!
Thanks for the replies folks, I'm even more depressed now. I thought they had to get the highest amount possible, they never even put for sale boards up outside the property. At the time I was heavily pregnant so we were more bothered about putting a roof over our heads, now I'm damn angry.Comment
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Re: Urgent advice needed!
Unfortunately, they DID get the highest amount possible albeit at auction.Originally posted by jet_black View Post
I think these things are a stitch up anyway. The consumer never winsComment
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Re: Urgent advice needed!
Originally posted by stevokenevo View Post
The bank sold it privately, it was the new owners who auctioned it
a tidy profit for 15 days ain't it
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Re: Urgent advice needed!
If it was sold privately, then that is even more suspicious, and defenitely smacks of an inside job.Originally posted by jet_black View PostThe bank sold it privately, it was the new owners who auctioned it a tidy profit for 15 days ain't it
I do hope someone else may be able to offer you some advice on this though, fingers Xd :okay:Comment
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Re: Urgent advice needed!
It's a difficult area to deal with as it all comes down to the housing market at the time of sale.
Cuckmere Brick Co Ltd v Mutual Finance Ltd [1971] Ch 949
Here judge Salmon LJ ruled:"...a mortgagee (lender) in exercising his power of sale does owe a duty to take reasonable precautions to obtain the true market value of the mortgaged property at the date on which he decides to sell."As previously mentioned 'What is true market value?'
They could also argue that whoever bought the property at auction paid over the odds.
Not what you want to hear but this area is very complex and hard to prove.
There are guidelines they SHOULD follow but proving they didn't will be hard.
Was there a shortfall on the mortgage as well as the secured loan or just the secured loan?
Who is the secured loan with?
Did you have an indemnity insurance with the mortgage and the secured loan?
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Re: Urgent advice needed!
On 15/09/2006 the court granted possesion for the sum of £68,770.67. The property was sold for £75,000.00 (£74,369.65 after costs) on 1/2/2007, £2,208.35was sent to Nemo (secured loan) on 29/03/20047. According to the SAR from the mortgage lender the surplus was £2,261.22. I am now in a state of utter confusion.
The new owner then sold it on for £89k on 15/02/2007. We are being chased by creditors left, right and centre, and I have absolutely no idea what to do.
The shortfall is on the secured loan.Comment
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Re: Urgent advice needed!
Jet, you say the Bank sold it privately. Is the Bank the Halifax?
If it is the following case might be of interest
http://www.bailii.org/ew/cases/EWCA/Civ/2002/1849.htmlComment
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Re: Urgent advice needed!
How did you guess? Birmingham Midshires were the lender, but the repo all went through via Halifax who I assume own Birmingham midshires. That article is going to take a lot of studying, but it looks like it will be worth it, thanksComment
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Re: Urgent advice needed!
The case seems to revolve around an employee of the bank buying the property from an early reading of it. Is there any evidence that this happened?Comment
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Re: Urgent advice needed!
You say you have done an Subject Access Request, I dont know what information you requested specifically but you should have got all the valuations from when you took out the mortgage, the valuations of the property when it was repossessed, a breakdown of all the costs involved, the name and address of the those who bought your property amongst much more info
this is the SAR i sent Platform some time ago, just as an example (post No. 6)
http://legalbeagles.info/forums/show...2132#post32132Comment
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Re: Urgent advice needed!
I don't appear to have any of this information, furthermore, I have looked on the website of the autioneers who were used. They have another auction on 14/02/08, the deadline for entries to this sale is 17/01/2008!!!!! I am now really wondering just how badly we have been stitched up, just off to read the thread you posted.Originally posted by thephoenix View PostComment
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