Re: Repossession

You don't know anything about this subject at all do you? so why do you think you can write a book on the subject? You can't sell a property where another party has a registered interest at the Land Registry, without them knowing. It would be impossible for a solicitor to convey it for example. As soon as they checked title the problem would be discovered.

No, same reason above. Even if they could sell it BS would have first bite at the proceeds.

Probably not, they would be said to "intentionally homeless". Any kids may be placed but the parents could be left to their own devices. What the BS usually do in these cases is put the house up for auction. They don't care how little it goes for as long as their debt is cleared asap.

I did say that I know very little about it.

I'm not writing a book on the subject, I'd just like to get my facts right in a very small part of a fictional work. You don't know anything about what I'm writing, why do you judge me? ;o)

Thanks for that, much appreciated.

In these days of vastly inflated prices, if the house went for, say, £160,000 and the owed mortgage was only £30,000 would the evicted buyers receive most of the extra?

Si

Sorry but you are wrong! They do have a duty of care to obtain the maximum. They can do this by auction or by selling it normally and then placing adverts stating the price that they have been offered and that they will sell unless a larger one is received within seven days. After deducting all the costs and the outstanding mortgage the owner gets the rest if there is any.

In article <bef8la$4h3hh$ snipped-for-privacy@ID-74687.news.dfncis.de>, Mungo "two sheds" Toadfoot snipped-for-privacy@skanksville.freeserve.co.uk> writes

The borrower would receive all of the proceeds less the cost of possession and sale.

If you are due to be possessed, there is absolutely nothing to stop you selling the house before the posession date, provided that the proceeds pay of the mortgage debt in full. In fact, the lender would be delighted.

However, it is my understanding that, if you sell the house yourself, and become homeless, you are classed as intentionally homeless. Where I have seen people evicted, the bailiff generally tells them to go to the local housing office, explain the situation and get them to call the bailiffs for proof - so I assume that you are welcomed into the s***ty system of housin and housing benefits if you are evicted.

If your house was worth £160K and your mortgage was £30K, you would have to be very naieve/stupid/head in the sand etc. to let it happen - Having said that, I have attended evictions where this has seemed to be the situation.

In article snipped-for-privacy@4ax.com, Andrew McKay snipped-for-privacy@kazmax.co.uk> writes

The Building Society Act requires the lender to get the best price possible using reasonable efforts, and the ex borrower gets any proceeds in excess of costs and mortgage.

Before marketing, the lender generally obtains a couple of independent valuations, to ensure that the property is not deliberately undersold.

In most cases, once an acceptable offer has been received, Building Societies insist that we place an advert in a local paper stating that we have an offer of X for Y property, and stating that any higher offer should be made before exchange of contracts - or similar. This often leads to gazumping - as encouraged by the various laws.

I think we are saying more or less the same thing but in a different way.

The mortgage company are only interested in covering their debt. If the property goes to auction and someone offers the cost of the debt then it's probable that the sale would proceed. The person who took out the mortgage could lose substantially.

Of course, at auction the property might realise quite a bit more than the mortgage value - in which case the person with the mortgage commitment would see something back. But you can't bank on it, and in the event the property collapse and job nightmare continues there will be a shedload of properties coming up for sale, driving down the saleable value.

Andrew

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Take a careful look through estate agents adverts and from time to you will see announcements that they propose selling a property at a specific price after seven days. Alternatively you may see a similar notice under the small adverts legal notices. As for houses being sold at significantly below the market price I don't doubt it does happen but generally not. A particular problem is that people often have an opinion of the worth of their home that is greatly inflated particularly in a falling market. Ask any estate agent and they will tell you of clients that refused to drop the asking price by large amounts with a result the property remained unsold for months and even longer.

I think few repossessions happen towards the end of the mortgage period - far more likely towards the beginning. So houses like this are often in poor condition - if someone can't or won't pay the mortgage why would they paint the house, etc?

What collapse might this be?

Well the property I bought from the BS was a reposession and was/is a dump but would you consider £19,995 for a two bed semi cheap or a knockdown price by the BS ? It was advertised on a board outside the property then sold without being advertised or offered as under offer anywhere as that was the terms of the sale I arranged with the BS.

Mark S.

I have vague recollections from not too many years ago where repossessed houses were sold at auction regardless of the 'best price'. The BS then recovered the shortfall, if any, using the mortgage protection insurance which people were forced to buy for the BS's benefit. The insurer then pursued the ex-owner for this shortfall. I might be wrong here. And it may not be the case these days with the rise in property prices.

On another note, I did here of a friend of a friend who bought a house during the boom of the late 80s. He never paid a penny on the mortgage, had it repossessed 9 months later and made over £20,000 profit.

MJ

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But they could claim that as it was sold at an open auction then they did get the best possible price.