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Repo home sold under value, now its default causing issues

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Hi All,

I'm hoping one of the very knowledgable people on here can help with this.

 

 

Back in 2012 my sister was forced to surrender possession of her house as she simply couldn't afford it any longer and it was only a matter of time until the lender took possession.

 

 

The lender subsequently sold the house for £115k and made a demand for the payment of a shortfall of just over £30k.

I disputed this on her behalf on the basis that the lender had sold the house way under its true value,

not just the fact that the exact same house next door sold 3 weeks later for £163k

but also that a few weeks before she gave the house up another creditor was trying to get a charge on the house and had it valued at between £160k and £165k for court purposes.

 

 

Notably, the estate agent who did that valuation report was the same one who subsequently sold it on behalf of the lender - the exact same branch in fact.

 

After she received the demand from the lender I wrote to them requesting all the details of sale and the usual information such as marketing details, offers received, initial valuation report etc etc.

 

 

After 3 months they wrote back saying they were unable to provide any of the information requested, to which I responded with a letter saying the debt was disputed until such time that they met their statutory duty to provide the requested information.

 

She has never heard from them since in the last 5 years, and they have not issued any court proceedings or even passed it to a DCA.

The debt is officially in dispute and they can't provide any proof of selling the property for the best possible price.

 

she recently had to get credit checked as she needs to move to new privately rented accommodation and failed it.

After registering with Noddle she was surprised to see that the lender had been registering a default every month since she handed back the house.

 

I was under the impression, perhaps mistakenly, that creditors couldn't register defaults against disputed debts ?

Not only is it disputed but it is totally unproven, especially given their admission that they can't provide any evidence re the sale and therefore haven't taken any recovery action whatsoever.

 

1. Are they allowed to register defaults in these circumstances ?

 

2. If not, how can she get them removed ?

 

Thanks.

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sadly they can.

but there should be a defaulted date in the debt summary

so that will cause the whole account to be removed on its 6th birthday.

 

 

but i'd be starting a new official complaint and get the shortfall sale value investigated properly

even as far as the FOS etc.

 

 

who was the lender please

 

 

dx


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sadly they can.

but there should be a defaulted date in the debt summary

so that will cause the whole account to be removed on its 6th birthday.

 

 

but i'd be starting a new official complaint and get the shortfall sale value investigated properly

even as far as the FOS etc.

 

 

who was the lender please

 

 

dx

 

Hi

 

It seems plain wrong that they can do that under the circumstances. Also, with it being a mortgage debt will it not stay on record for 12 years rather than the normal 6 ?

 

The lender was Mortgage Express who by their own admission don't have the required information to pursue the debt but won't write it off or close the file.

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Hi

 

It seems plain wrong that they can do that under the circumstances. Also, with it being a mortgage debt will it not stay on record for 12 years rather than the normal 6 ?

 

The lender was Mortgage Express who by their own admission don't have the required information to pursue the debt but won't write it off or close the file.

 

Agree with dx that your Sister should have made a complaint, going to the FOS if necessary. Repossession properties generally sell for less, but the amount it was sold for does seem well below what they should have got for it. Your Sister could send a Data Protection Subject Access Request asking for everything on the mortgage file including repossession paperwork.

 

Mortgage debts will appear in a credit record for 6 years from the original default date. In regard to limitations act, it is 12 years for the capital part of the mortage and 6 years for interest.


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Agree with dx that your Sister should have made a complaint, going to the FOS if necessary. Repossession properties generally sell for less, but the amount it was sold for does seem well below what they should have got for it. Your Sister could send a Data Protection Subject Access Request asking for everything on the mortgage file including repossession paperwork.

 

Mortgage debts will appear in a credit record for 6 years from the original default date. In regard to limitations act, it is 12 years for the capital part of the mortage and 6 years for interest.

 

Yes I think I might have to that for her. We did submit a SAR back in 2012 but they replied saying that they had no records to give us ! I also submitted a complaint through their own system which was upheld.

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