Repossession

[sully45]

freind of mine is going through a messy divorce and has decided rather then sell his house he will recieve more money if the property is repossessed. Am i correct in telling him that mortgage company will only sell the house for monies owed to them and not market value?

[dot.hawkes]

tell him he is off his trolley, what a daft idea he has

[buildersmate]

As Dot so eloquently says, the mortgage company are only ever interested in getting back the outstanding loan sum. Anything more is of no consequence to them, so they will use advisers who will cost money against any 'profit' from the sale and they aren't fussed at all about what the market value might be.
Better off not doing this.

[Ethel]

The mortgage company will claim back all associated costs as well.

[scoobydooby]

I know someone who had her house repossessed several years ago. She moved into rented property and, at the eleventh hour, a previous colleague (whose curcumstances had also changed) offered a sum to the building society for the property. Due to previously knowing this person, my friend was aware of the price being offered. However, the building society declined his offer and sold for considerably less to a local housing association. Incidentally, this colleague was a cash buyer and ready to proceed. They will not necessarily sell for the best price so beware!

[fredpuli47]

I don't think the divorce judge would be impressed if your friend tried this.It is patently obvious that this course will not make more money. The judge would be inclined to say that this was a deliberate attempt to spite the wife and would adjust any share of the proceeds in her favour.

[busta233]

I know someone who had their house reposessed some years ago. She did it for the same reason as your friend - but her husband was leaving her and she did not have the money to pay the mortgage so she just let them reposess the house.

The building society put a notice on the house that it had been reposessed and was going to auction. The house went to auction and sold for �6,000 less than the mortgage they had on the property.

My sister-in-law moved into rented accomodation. Two to three years later she got a letter from the building society saying that she owed them �8,000 + and demanded that she paid it or be taken to court. This amount was the outstanding mortgage plus interest and costs.

So be careful because this could happen to your friend.

[Peter Pedant]

Having BOUGHT a repossession
erm they are quite a bargain !

as for accepting a lower price - see above - than the best offered, I am surprised that went through.

Nonetheless Divorce or not
it is stupid way to PLAN things

unless you are a buyer of course.

Er, where is the house ?

PP

[cozican]

the best thing that your friend can do is sell to these buy to rent people, i know you will only get about 80% of the value, but if you shop around,{ and haggle by telling them other companies have offered you more, sneaky, but it works, }
it will still be alot more than the mortgage company will give them. and they do all the paperwork, and pay all the costs, so you dont have to pay anything.