Mortgage shortfall

[eliza]

I've found out that my property is being sold for £18,000 less than the valuation of £190,000 which my mortgage has put it up for although I had it up for £220,000 as it's a Rare Property to come on the market.The amount outstanding after possession was approx £191,00.Of course now other amounts will have been added to it all.My husband and I have unsecured debt too and whilst I was not expecting anything from it I thought it would be cleared or just a couple of thousand outstanding.But by my working out we are going to be left with approx £23,000 shortfall.I wouldn't mind but they valued the house at £205,000 themselves 5 years ago and house prices have gone up.When I went to see a solicitor about selling it they told me I couldn't sell at any price because of unsecured loans but it's amazing how they can do it and accept any price just to get it off their books.I don't think that they'll leave it very long to contact us about any shortfall but as we're living below the poverty line I really can't give anymore to anyone else.

[eliza]

Re: Mortgage shortfall

I forgot to add they also asked for a Money Judgement at the court hearings which was granted to be adjourned and restored at liberty.Which I presume that I don't acknowledge it until they take me back to court.If they do I presume that they'll be adding interest to the shortfall which I'll ask to be stopped.I did this with another debtor who had placed a CCJ against me.

[FlamingParrot]

Re: Mortgage shortfall

Hi and welcome!

I've found out that my property is being sold for £18,000 less than the valuation of £190,000 which my mortgage has put it up for although I had it up for £220,000 as it's a Rare Property to come on the market.The amount outstanding after possession was approx £191,00.Of course now other amounts will have been added to it all.My husband and I have unsecured debt too and whilst I was not expecting anything from it I thought it would be cleared or just a couple of thousand outstanding.But by my working out we are going to be left with approx £23,000 shortfall.I wouldn't mind but they valued the house at £205,000 themselves 5 years ago and house prices have gone up.

The FCA MCOB Handbook states that a firm must take steps to obtain the best price that might reasonably be paid for the property:

MCOB 13.6 Repossessions
MCOB 13.6.1

A firm must ensure that, whenever a property is repossessed (whether voluntarily or through legal action) and it administers the regulated mortgage contract or home purchase plan in respect of that property, steps are taken to: (1) market the property for sale as soon as possible; and
(2) obtain the best price that might reasonably be paid, taking account of factors such as market conditions as well as the continuing increase in the amount owed by the customer .

If this is not done, you may be able to dispute the amount owed to the lender, for example, by providing evidence of previous valuations showing a higher amount. Have you got more recent valuations?

When I went to see a solicitor about selling it they told me I couldn't sell at any price because of unsecured loans but it's amazing how they can do it and accept any price just to get it off their books.I don't think that they'll leave it very long to contact us about any shortfall but as we're living below the poverty line I really can't give anymore to anyone else.

What would UNSECURED loans have to do with you selling your house? Would you care to tell us a bit more about this and why you saw a solicitor in the first place, in relation to selling the house?

[eliza]

Re: Mortgage shortfall

Sorry what I meant was that I have secured loans on the property with the same lender.I don't have any valuations only their valuation of £205,000 back in 2008.The Solicitor was one which they were offering legal help because I was going to court for the court hearing.

[IanM]

Re: Mortgage shortfall

Who is the lender?

Who are the solicitors that offered legal help when you went to court?

Have you sent a SAR to the lender?