house with equity in it being reposessed

[topmak]

my friend is in the unusual position in that her bank are trying to repossess her house even though she has 40% equity in it and the mortgage is and has always been upto date.
my question is, if the bank succeed in repossessing it and once they have sold it and taken thier fees and redeemed the mortgage will she recieve the profit left over or will the bank keep it??

[hc4361]

What reasons are they giving for repossession?

She would receive any profit, but the bank will want a quick sale and provided they get their money back they aren't much bothered about getting a higher price.

[Gizmonster]

Something's not quite right here, surely ??
On what grounds are the bank re-possessing the house if the mortgage is (and always has been) up to date and there's plenty of equity in the house.
I'd seriously tell your friend to seek legal advice (unless there's something else that they're not telling you) ......

[rowanwitch]

Unfortunately if word gets out its a repo it is highly unlikely to sell for much more than the outstanding mortgage.. and that is all the lender will want, I know its possible for an unscrupulous estate agent to tell developer friends of repos and if they find out from the owner the amount of o/s mortgage they can put in a bid of that plus a couple of grand...if no other bids are placed after the required period ( it used to be 3 months I think) then the developer gets it. (of course in this time it somehow doesn't get viewed by someone who might pay a better price... maybe it doesn't get advertised quite as well or other properties are pushed.)

[hc4361]

Did she obtain the mortgage fruadulently?

[ummmm]

That's my thinking hc.

Can't think of any other reason..

[rowanwitch]

Only thing I can think even if it wasn't done intentionally

[tonywiltshire]

As you say it is a most unusual position that a mortgage provider would seek to repossess a secured property where the mortgage is, and never has been in arrears.
They must have given the reasons for this action and it is this reason, which needs to be addressed, as this is the true cause for this peculiar action.
In my experience if the action is successful and the property is sold whilst the seller would have a duty to obtain the best possible price for the property they will not necessarily be successful in this, any funds left after their charges and costs would be refunded.

[Nini74]

I think there's something your friend isn't telling you......