After Repossession

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DirtyHabit | 17:32 Sun 27th Nov 2005 | Business & Finance
3 Answers
My sister is having her home repossed by the mortgage lender. She has struggled to hang on to the house for eight years receiving no financial help from her ex husband dispite it also being his daughters home.The house is worth almost double the amount owing. Will she receive the balance after the property is resold by the lender?


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It surely depends in whose name the Title Deeds are in. Irrespective who is living in the house, the person holding the title would expect to take the proceeds. But surely such things are sorted legally at the point the husband became an ex-husband.

If you are asking if the bank / building society will keep any of the equity, the answer is no - they will only take what is oweing to them.

Don't forget though that they sell the house quickly and it will get far less as a repossession than a normal sale through estate agents (sometimes as little as 75% of open market value). They will also have extra legal charges etc, so she may not get as mcuh as she thinks.

It may not be too late to get the Child Support Agency to act and get maintenance from the husbands share. This will need to go to court before possession is granted and may also help prevent it if there is a way income can be improved. It is always better to sell a house than have it repossessed. She needs legal advice and probably qualifies for legal aid, if not see the CAB.

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After Repossession

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