Outstanding amount after reposession

[boxingliz]

After a nasty split from partner, The house was repossessed and sold which left 20k outstanding and a secured loan. The mortgage company have contacted me I am now in scotland and are chasing me for the outstanding, it was a joint buy. What can i do, I have tried talking to scottish lawyers they say i need to speak to english lawyers as different law. that is difficult now. Any advice would be welcome, I tried months ago to sort this out but the mortgage company ignored my letters. I am desperate to do something as the thought of all this is making me ill. I have no home, no money, no job so not sure what I can do. I would be grateful for any advise.

[sweetjane]

Which lender was it? This is the problem with repos and secured loans. The outstanding amount is usually far more than anyone expects. If the repo sale price is poor the gap between that and what is owed can be enormous. Did you have PPI on the loan? We're there unfair charges in excess of monthly arrears charges? Did the lender check the loan was affordable? These are avenues you could investigate. CAB or (make sure you get the correct organisations not those dmcs that try and copy their names on the web) may be able to help you. Send info to [email protected] if you have time, he is looking at how new FCA will regulate.

[boxingliz]

ThanksSweet Jane, I have no information on what has happened to the loan the mortgage company must have unsecured it, not heard from them, the amount added is the amount added was in excess of 12k above the mortgage, they accepted a ridiculous price for the property, far below the market value. I am having trouble as this property is in england and i am in scotland and I am dealing with a different law system here, no one want s to help.

 

I could contact CAB in england i suppose, but i do not have any funds to offer them so not sure what they can do.

[sweetjane]

Which lender was it. I don't think they are treating customers fairly if they sell a property for way under the going rate. Speak to CAB definitely - look at their website their are numbers to call.

sj

[Bandit127]

Sadly, since it was a joint mortgage you are "joint and severally liable" with your partner. This means you must view the shortfall as yours to deal with. The secured loan is now an unsecured debt (since the security has been sold). Are you paying on that?

 

I will post some links below that have some background reading. You have right to be dealt with fairly during the repossession and sale. You also have the right to the information you need to check that they were fair.

http://www.stgenix.co.uk/stop-repossession/after-repossession-your-duties/

http://www.cml.org.uk/cml/policy/guidance

 

Have a look through the National Debtline sample letters. Two that look immediately useful are:

Mortgage shortfalls: Breakdown of balance owed and

Mortgage shortfalls: Please write off the debt.

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

 

I would start by asking them to write the debt off as you are in no position to pay. If they refuse, appeal their decision. If they still refuse, offer £1 a month and start digging to make sure they have treated you fairly.

[Ell-enn]

How long ago was the house repossessed?