Lilly's Repossession

[lilly1203]

Re: Lilly1203 Diary

Good to hear that Lilly and the kids are settling into their new life

The mortgage shortfall is small in the grand scheme of things and NRAM are unlikely to keep chasing her for long. But she needs to get a statement now with a full breakdown of all the add-ons such as legal costs, agent's fees, interest, and redemption charges etc. These can be challenged if they are excessive (they will be!). She needs to get that £3.5k figure down to as low as possible so they may write off the balance. She would have been responsible for the mortgage payments up until completion of the sale. She also needs to check whether they will be adding interest (sometimes they can) to that £3.5k shortfall which could add up over the years if she ignores it.

In some ways she has saved money by not being repossessed through the courts because she would have had to pay all NRAM's legal costs for that process too. She did a voluntary repossession (she handed in the keys) but that doesn't mean the lender should take advantage of the situation. They have a duty to get the best price and it looks as if they didn't. So the quick answer to your question is she should get the figures from NRAM and make a complaint to the FOS who do take repossession underselling seriously. I hope she's kept the valuations she had done which evidence a market value of £20k - £30k more than it was sold for. She needs comparables of similar houses sold locally (within a 5 mile radius) which she can get from the www.Zoopla.co.uk or www.nethouseprices.com websites. Just enter the postcode and voila. The recent figures take two months to become available (they're based on Land Registry figures so they will be accurate).

Here's a case where the FOS awarded compensation to someone whose house was undersold by the lender following repossession. I hope she finds this encouraging:

http://www.financial-ombudsman.org.u...ears.html#cs11

Hi PlanB, just to update things. I have sent off the SAR to NRAM and GE, I have done some research and we do have the valuation from the estate agent dated Feb 2013 that states £174.999 based on recent sales and today's market value. I have also got valuations from Zoopla and the same houses in the same road are all around £170,000 +, one actually sold for £170,000 recently. this would have cleared all the mortgage arrears and GE money. Shall I wait to hear back from NRAM re the SAR or contact FOS now, thanks Lilly's dad

[Never-In-Doubt]

Re: Lilly1203 Diary

That's good though isn't it? Although sadly can't be out and out UE, at least it's a point for arguing down the residual balance/pushing for a write off..

Well depends on default etc as well but yea, can't see how an £8k loan can turn into one at £30k loan just like that! It's absurd.....

[Undercover Elsa]

Re: Lilly1203 Diary

That's good though isn't it? Although sadly can't be out and out UE, at least it's a point for arguing down the residual balance/pushing for a write off..

[Never-In-Doubt]

Re: Lilly1203 Diary

Although this is post 04/07 there are errors such as they've added a broker and application fee to the PT's of the loan suggesting on the £400 broker fee @ 15.9% APR over 25yrs - a lot more would have been repaid hence the PT's are wrong but it's after 04/2007.

Hmmmmmm

[lilly1203]

Re: Lilly1203 Diary

I feel a second SAR coming on. Wait until Niddy has seen the agreement, but UE isn't only about s.78. An agreement can be unenforceable in court for a whole host of reasons

Was there any PPI on that GE Money loan?

Hi PlanB and Elsa, Niddy says cant challenge the CCA as its after 04/07 as you have said, I will send SAR request today to NRAM and to GE. The total debt to all is about £19,000 inc GE and shortfall to NRAM. Thanks Lilly's Dad

[Never-In-Doubt]

Re: Lilly1203 Diary

Cant see any PPI on the contract. How do I send Niddy the CCA, cant find the link on the new site, thanks Lilly Dad

Webmaster@all-about-debt.co.uk

[lilly1203]

Re: Lilly1203 Diary

I feel a second SAR coming on. Wait until Niddy has seen the agreement, but UE isn't only about s.78. An agreement can be unenforceable in court for a whole host of reasons

Was there any PPI on that GE Money loan?

Cant see any PPI on the contract. How do I send Niddy the CCA, cant find the link on the new site, thanks Lilly Dad

[PlanB]

Re: Lilly1203 Diary

GE are writing to Lilly at my address so that is covered.

. . . we do have a CCA from them which I requested back in April this year, shall I sent it to Niddy to see what he thinks? I am told this was done via a man who called at the house.

I feel a second SAR coming on. Wait until Niddy has seen the agreement, but UE isn't only about s.78. An agreement can be unenforceable in court for a whole host of reasons

Was there any PPI on that GE Money loan?

[Undercover Elsa]

Re: Lilly1203 Diary

Hi Lilly's Dad,
The law changed in April 2007 sadly, but I'd still send it to Niddy for appraisal as the more points of contention you can raise, the better.
I'm so glad your daughter and family are settled in their new home after all their troubles.
It might be an idea to send a Subject Access Request to NRAM to get all the info they hold on her including the final breakdown.
Here's the advanced request template-amend to suit: http://www.all-about-debt.co.uk/inde...vanced-request

Once you have all the info to hand, if you get to the stage of needing letters requesting a write off on humanitarian/extreme hardship grounds do give me a shout if you need any help.
What's the current total of all her debts combined?
kind regards,
Elsa x

[lilly1203]

Re: Lilly1203 Diary

Something has just occurred to me. Since Lilly's GE Money loan is less than £25k it may be covered by the CCA. Post up details of the start date etc in case the agreement turns out to be UE. GE Money were known to be very sloppy with their paperwork And there was loads of mis-selling through their broker network

Just to update you, I have checked the CCA we had from GE and the date this was taken out was 08.10.2007, is this to late for any UE, thanks Lilly's Dad

[lilly1203]

Re: Lilly1203 Diary

One step at a time. Lilly should set up a Royal Mail Redirection service from her old home so she at least knows what GE Money are *thinking* of doing. Once the property was sold Land Registry would have made GE Money aware of the transaction since they had a charge registered on the house which will now have been removed. At that point GE Money's legal department would have no idea whether Lilly is a multi-millionaire or a scoundrel, but they will assume the latter unless they hear different.

Lilly can expect a letter any day soon from GE Money. Post up what it says. They can chase (and will) this debt for six years (possibly 12 years) so sometimes it's not a bad idea to try to knock it on the head from Day 1. If it was me I would go for sympathy. I see no harm in responding to the letter (there will be a letter) informing them of the truth. She could tell them of her husband's death (again) and her inability to pay. She should ask them to write off the debt (they may not but worth a try). She'll be laying a paper trail. That's all. I see no need for her to give them her new address but they will trace her as the years go by.

Tell her not to worry about GE Money at this stage

Again many thanks, GE are writing to Lilly at my address so that is covered. I will post up anything we get from them and I will write to them to explain all that has happened, we do have a CCA from them which I requested back in April this year, shall I sent it to Niddy to see what he thinks? I am told this was done via a man who called at the house. I will check when this was. cheers Lilly's Dad

[lilly1203]

Re: Lilly1203 Diary

Good to hear that Lilly and the kids are settling into their new life

The mortgage shortfall is small in the grand scheme of things and NRAM are unlikely to keep chasing her for long. But she needs to get a statement now with a full breakdown of all the add-ons such as legal costs, agent's fees, interest, and redemption charges etc. These can be challenged if they are excessive (they will be!). She needs to get that £3.5k figure down to as low as possible so they may write off the balance. She would have been responsible for the mortgage payments up until completion of the sale. She also needs to check whether they will be adding interest (sometimes they can) to that £3.5k shortfall which could add up over the years if she ignores it.

In some ways she has saved money by not being repossessed through the courts because she would have had to pay all NRAM's legal costs for that process too. She did a voluntary repossession (she handed in the keys) but that doesn't mean the lender should take advantage of the situation. They have a duty to get the best price and it looks as if they didn't. So the quick answer to your question is she should get the figures from NRAM and make a complaint to the FOS who do take repossession underselling seriously. I hope she's kept the valuations she had done which evidence a market value of £20k - £30k more than it was sold for. She needs comparables of similar houses sold locally (within a 5 mile radius) which she can get from the www.Zoopla.co.uk or www.nethouseprices.com websites. Just enter the postcode and voila. The recent figures take two months to become available (they're based on Land Registry figures so they will be accurate).

Here's a case where the FOS awarded compensation to someone whose house was undersold by the lender following repossession. I hope she finds this encouraging:

http://www.financial-ombudsman.org.u...ears.html#cs11

Hi Plan B, thanks so much for your reply and support. Do I just ask for a breakdown or is there a template, I presume this will have to be from Lilly rather than me although she has sent a letter giving me authority to deal. Hope to speak soon, Lilly's Dad

[PlanB]

Re: Lilly1203 Diary

Something has just occurred to me. Since Lilly's GE Money loan is less than £25k it may be covered by the CCA. Post up details of the start date etc in case the agreement turns out to be UE. GE Money were known to be very sloppy with their paperwork And there was loads of mis-selling through their broker network

[PlanB]

Re: Lilly1203 Diary

Lilly also had a secured loan with GE for £9000 and that is still owing although there is no longer anything to secure it too, Lilly has no assetts, no money and nothing of value except a car woth £2000 that she has to go to work in, we have not heard from GE for some time

One step at a time. Lilly should set up a Royal Mail Redirection service from her old home so she at least knows what GE Money are *thinking* of doing. Once the property was sold Land Registry would have made GE Money aware of the transaction since they had a charge registered on the house which will now have been removed. At that point GE Money's legal department would have no idea whether Lilly is a multi-millionaire or a scoundrel, but they will assume the latter unless they hear different.

Lilly can expect a letter any day soon from GE Money. Post up what it says. They can chase (and will) this debt for six years (possibly 12 years) so sometimes it's not a bad idea to try to knock it on the head from Day 1. If it was me I would go for sympathy. I see no harm in responding to the letter (there will be a letter) informing them of the truth. She could tell them of her husband's death (again) and her inability to pay. She should ask them to write off the debt (they may not but worth a try). She'll be laying a paper trail. That's all. I see no need for her to give them her new address but they will trace her as the years go by.

Tell her not to worry about GE Money at this stage

[PlanB]

Re: Lilly1203 Diary

Good to hear that Lilly and the kids are settling into their new life

The mortgage shortfall is small in the grand scheme of things and NRAM are unlikely to keep chasing her for long. But she needs to get a statement now with a full breakdown of all the add-ons such as legal costs, agent's fees, interest, and redemption charges etc. These can be challenged if they are excessive (they will be!). She needs to get that £3.5k figure down to as low as possible so they may write off the balance. She would have been responsible for the mortgage payments up until completion of the sale. She also needs to check whether they will be adding interest (sometimes they can) to that £3.5k shortfall which could add up over the years if she ignores it.

In some ways she has saved money by not being repossessed through the courts because she would have had to pay all NRAM's legal costs for that process too. She did a voluntary repossession (she handed in the keys) but that doesn't mean the lender should take advantage of the situation. They have a duty to get the best price and it looks as if they didn't. So the quick answer to your question is she should get the figures from NRAM and make a complaint to the FOS who do take repossession underselling seriously. I hope she's kept the valuations she had done which evidence a market value of £20k - £30k more than it was sold for. She needs comparables of similar houses sold locally (within a 5 mile radius) which she can get from the www.Zoopla.co.uk or www.nethouseprices.com websites. Just enter the postcode and voila. The recent figures take two months to become available (they're based on Land Registry figures so they will be accurate).

Here's a case where the FOS awarded compensation to someone whose house was undersold by the lender following repossession. I hope she finds this encouraging:

http://www.financial-ombudsman.org.u...ears.html#cs11