Mortgage question

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I wouldn't. They will auction it and bill them for the difference. This will almost certainly be more than if they sell it.

Reply to
dennis
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Which in practice is what I said. Effectively you can only sell the house after the mortgage has been paid off - regardless of how the paperwork may appear.

Reply to
Dave Plowman (News)

So you have all the paperwork in your possession which would allow you to sell the house and bollocks to the BS? Somehow I think not...

So effectively they own the house. Until you pay them off. Then you can do what you want with it.

Reply to
Dave Plowman (News)

Thank goodness for some sense.

Reply to
Dave Plowman (News)

FFS, this can't happen. The BS charge on the property has to be cleared before the ownership can be transferred.

Reply to
Dave Plowman (News)

Oh it can. If the new owners takeover the charge.

Reply to
dennis

But Oh so unlikely in this case, as the charge/mortgage would seem to be more then the current valuation of the house.

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Reply to
Mark

They might well take over the responsibility for paying a sum of money, but the original charge will be repaid and a new one created.

Reply to
Dave Plowman (News)

seems this didnt get through earlier...

OK, update time...

The sale price of the house would be a lot less than the mortgage amount. There is no other house and no other assets. They're on the verge of bankruptcy.

The building is uninhabitable, and repair looks to be beyond possible. Insurance doesnt cover the problem. So renting it out is a non option, and recovering the purchase cost looks likewise.

AFAICS the mortgage co loses out whatever happens. Their best bet, and its not a good one, appears to be to accept the house sale, which will reduce the mortgage principal, and continue to accept entirely unsecured payments derived from a regular wage. Of course its a situiation that will worry any mortgage co seriously, but I dont see a better option for anyone concerned.

The other option is bankruptcy, which will only cause the mortgage co even more costs, and presumably ruin any chance of them buying a house ever again (which may not be a bad thing in this case!)

I tell you it makes me glad I've got the skills I learnt to a fair extent from this newsgroup. The purchase has ruined them financially.

NT

Reply to
meow2222

Curiosity drives me to ask how did it get in that state? Was this a second house, bought as a wreck or something like that?

(rest of stuff is beyond the scope of this NG - as has been suggested, they need to get talking to people, and sharpish).

Reply to
Clive George

Actually the other option is arson.

Reply to
The Natural Philosopher

A house on telly the other night (Homes from hell?) was like that. An incompetent builder dug under the foundations and the entire gable end wall fell off. The householder's insurance did not cover damage due to building works, and the builder was not insured. The builder fled to Australia leaving no assets.

In this case the householder was a young accountant, for whom bankruptcy would have dire professional consequences. As a first time buyer she had no savings left and little equity in the property anyway.

Owain

Reply to
Owain

But if they're paying out for ever and a day to make up the unsecured payments they're not going to be able to afford to buy a house, or even save a deposit. They might not even be able to afford to rent somewhere (and increasing numbers of landlords are doing credit checks on tenants).

In this state, bankruptcy or some other arrangements where the slate is wiped clean (financially, if not credit-rating-wise) might be a good thing.

Specialist advice is needed, and not from a commercial firm that peddles IVAs like double-glazing.

Owain

Reply to
Owain

Not in this case, because the insurance would only repair the building to the state it was in before the fire. Repair to habitable state would be 'betterment' and the policyholder would be expected to pay the difference.

A term of imprisonment might solve the immediate housing problem, though.

Owain

Reply to
Owain

What's it worth as a building plot?

Reply to
Andy Burns

Jeeezz .... whatever did they buy a ruined castle?..

All begs a question how did the mortgage get to be more than what the property could be sold for?.

Our local building society wouldn't have let that happen there're as tight as ducks botty's with their funds;!...

Seems to me they might have been a bit negligent lending on this one unless theres a lot more to it we don't know..

Reply to
tony sayer

tony sayer gurgled happily, sounding much like they were saying:

Easily. >100% mortgage, then falling house prices. That's before you factor in any over-enthusiasm when they bought it, compared to a forced sale...

Reply to
Adrian

If a property has been registered with the land registry the deeds are effectively meaningless. The last time I moved house the mortgage company certainly weren't interested in having them.

Reply to
Jim

Indeed.

There have been quite a few cases of historic documents being destroyed because they were "no longer needed".

MBQ

Reply to
Man at B&Q

-Indeed.

-There have been quite a few cases of historic documents being

-destroyed because they were "no longer needed".

In"deed" again ;o)

For the first time, on my last move, we got all the deeds as the mortgage company didn't want them. Very interesting they are too.

Reply to
Bob Mannix

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