repossession

[Connemmara]

Could anybody enlighten me please. My nephew put down �25,000 on a house and proceeded to rent it out now he cant afford payment on this house and the one he lives in he has told me he will let the house be repossessed. Does that mean he has lost �25,000

[ChuckFickens]

the house will be reprocessed and sold, the outstanding mortgage plus any other debts on the property such as the repossession fee will be paid off using the money from the sale and any left over (if there is any) will be paid to your nephew.

[redcrx]

oh and dont expect the mortgage company to sell it for a huge amount.

If he has any equity in it then he should try his uptmost to sell it himself or he could end up owing the mortgage company a lot of money.

reposessions are currently being marketed about 30% less than similar properties in my area

[dundurn]

Whoever loaned him the balance of the purchase price of the house will sell the property to recover their loan. Out of the proceeds of the sale they are entitled to deduct the original loan, any arrears on repayments, and the costs (including legal costs) of the repossession, advertising and sale of the property. In the current climate there is a real possibility that after doing all this there wil be nothing left for your nephew, indeed there may still be an amount outstanding due to the lender.

[Cathyhuns]

If there's no money left to return to him he will continue to ow this money to the mortgage company. They may stop chasing him but he will almost certainly have a black mark on his credit agreement which will seriously affect his ability to get credit in the future.