My BIL may be having his house repossessed because he left the property a year ago and his ex partner is refusing to put it on the market.
He is entitled to 50% of the equity but she will not cooperate and sell, and can't afford to buy him out. He is taking her to court in March but she is quite likely not to turn up, so there will be no time to reschedule the case.
The mortgage comes to an end in April and would need to be jointly remortgaged by both of them. This is out of the question. The bank have already extended so unlikely to do so again. It is held as joint tenants on the mortgage.
There is around 100K equity, much of which will be lost if it is repossessed. The banks outstanding amount is around 60K + costs of repossession.
The legal side is all sorted. The question is this: can the bank offer it for sale at a riduculously low price to just recoup the oustanding mortgage?
Do they have a moral/legal obligation to get the best price possible? So that they can give the owners some equity back.
Even after its repossessed does BIL and EXP still have to pay the mortgage?
Has anyone been is this position and how did their mortgage provider respond?
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Repossession. How much is the mortgage company likely to ask re price?
sneezecakesmum · 10/01/2012 21:22
Even though there is 100K equity in the house, are you saying they will lose all of that 
Tried asking bank what would happen and got gobbledygook.
Yes, every penny I'm afraid. To explain it in different terms - say you bought a house for 120k, that house would then become yours, you would be the owner. If you then managed to sell that house for 200k would you give the 80k back to the original owner you purchased from? I'm afraid that's how repossession works - the property ceases to be owned by you (BIL in your case) and becomes property of the bank. Any profit made from the sale belongs to the bank.
Sucks I know 
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This reply has been deleted
Message withdrawn at poster's request.
Yes, Reality. That is what the bank wants, the equity. That's why it's worth their time chasing for a repossession order.
Also, that is why a borrower will always get a better mortgage deal (interest rate, terms etc.) if they are borrowing a low percentage of the property value. Because the lender knows that if anything should happen and the mortgage not be repaid, they would have all that lovely equity .
Thats what beetroot is saying Reality, and to be honest, it sounds reasonable, if horrible.
I think we need to have a word with our bank, (his was diabolical!) to see if we can get any sense out of them to confirm this. Maybe an estate agent too.
Sounds dire but beginning to think its right
The stupid exP needs to be made aware of this too. If she carries on like this they will both be big time losers!
It would appear that things must have changed then MoreBeta - either that or we are owed some money! Very interesting .
Um, am very glad you started this thread OP. I've explained it to you in the exact same way it was explained to us. I am now searching to see if there are new laws in place or if we were, pardon the expression, screwed over 
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It makes the situation for your BIL better though - sorry for panicking you!
Singing....what you say is what we were all hoping would be the case. Poor beetroot was very unlucky. We just hope the ex sees sense and puts it on the market.
Feel much better now, as that seems more fair...even though fair is often not what banks are 
Thank you sneezecakes - believe me I will! I hope your BIL gets things sorted in a good way aswell .
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