My Mortgage Shortfall Dilemma

[PlanB]

I haven't got a copy of a possession order and I don't know how things would have progressed as we didn't formally had back the keys.

If you didn’t formally hand back the keys then it may not have been a voluntary repossession.

Do you recall signing a ‘voluntary surrender form’ in which you would have confirmed that you would remain liable for any mortgage shortfall after the property was sold?

Was the mortgage in your sole name or joint names with someone else?

What did you do if you didn’t hand back the keys or to put it another way, how did you give up possession (if you did)?

You've said the shortfall was £30k but I think you said that you didn’t have a full breakdown of how that was calculated.

Did the property remain empty for months or was it sold at auction for (possibly) Below Market Value?

You can check the price paid on Land Registry, although if it has been sold again since it won’t show on the Office Copy which only reveals the current owner. However websites such as Zoopla will list previous sales back as far as 2000.

Sorry for all the questions but it’s important to know the full facts before I make any suggestions as to the way forward.

Di

[MrKrinkle]

I didn't sign anything from the bank, we just left the property and moved to a rental. At the point that I left the property I was already 3 months in arrears with the mortgage which was in my sole name.

From the time we left it took around 14-15 months before the property was sold according to the land registry. Looking at an old credit report, the mortgage account was defaulted around 10 months after we left. Would it be safe to assume this is when the lender would have been granted possession?

The shortfall between the price it sold for and the original value of the mortgage was around £24k. The property was sold by an estate agent rather than at auction.

[PlanB]

Hello

I've only just seen your PM so apologies for my slow response.

I'll take another look back through your thread before making my suggestions.

However I can't see when or how Cheltenham & Gloucester (now Lloyds) knew you had vacated the property since you say "we just left the property and moved to a rental", so that might be my starting point since sometimes it's all about the keys.

You say the mortgage/loan wasn't defaulted until 10 months later and the property wasn't sold until nearly a year and half later so what took them so long, unless they didn't know you were no longer in occupation or had abandoned the property.

Also, how do you know the property was sold by an estate agent and not sold at auction (held by an estate agent)? I'm not doubting you, I just like to get the facts before attempting to interpret them for you.

Di

[MrKrinkle]

Hello Di,

Yes that's probably the case, I didn't formally tell them of our intention to leave the property. Although there was contact prior to leaving as we had arrears on the mortgage. I didn't have the money to repay the arrears as a lump sum and couldn't reach an agreement to repay the arrears by installment.

I will PM you the dates that I have reported on my credit file, so you have the exact information. My file was also marked arrangement to pay for a number of months prior to default, but I'm certain no arrangement existed?

I don't know exactly how the property was sold, although I do know that its was advertised through an estate agent and at that time didn't mention auction. I'm afraid its another one to add to the list of unknowns!

[PlanB]

Hello Di,

I didn't formally tell them of our intention to leave the property. . . I will PM you the dates that I have reported on my credit file . .

I'm afraid its another one to add to the list of unknowns!

You've sent me a PM with the relevant dates so they're not "unknowns" anymore

You are getting close to the mortgage shortfall becoming Statute Barred (if it is 12 years) so maybe best to keep your head down so you don't draw attention to yourself.

Also read this fact sheet which explains the difference between whether the shortfall balance included interest as well as capital, since that could make a difference to the limitation being 6 years or 12 years > https://www.nationaldebtline.org/fac...shortfalls-ew/

You're almost there so it would be a pity to blow your cover now.

Di

[Zeero]

Do you have any details on when the mortgage company sold the property? If the mortgage company has sent you a letter to your old address, you can find this at the post office, which records all letters by postcode (indicate the one from the old house), and you can also request to redirect the letters. Consult with a specialist to understand the legal steps that are followed after the property was repossessed. You can ask for the help of mortgage broker Cardiff to know how to act at the moment or to solve the 30k + debt.

[Joanna Connolly]

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