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What Happens To The Property After Repossession?

Once you have been evicted and repossession has taken place then the property belongs to the lender. The lender will put it up for sale with the hope of getting back what they have lost through what the homeowner owed on the mortgage. However in some cases the price the property is sold for will not cover what the individual owes on the mortgage.

Even though your home has been repossessed and you have been evicted you will still have to maintain the mortgage repayments until the lender finds a buyer for the house and the sale goes through. The charges which you will still have to pay by law include any arrears on the mortgage, the monthly mortgage repayments, any charges for payments that are missed and outgoings associated with the property including insurance. Usually selling a property can take a long time but you will still have to maintain these payments until the final sale regardless of the fact you no longer live on the premises.

The lender however has to play fair at this stage and they should do all they can to get the property up for sale and sell it as quickly as possible. If you feel that they are not doing so then you should seek help immediately. In certain cases individuals can make a complaint to the Financial Services Ombudsman which could result in the lender having to pay you compensation. If you do not know where to begin then seek help and advice from your local Citizens Advice bureau. You should also seek advice if you believe that the lender has accepted an offer on the property that is unreasonably low. It is the legal responsibility of the lender to sell for the best price that can possibly be obtained.

Upon completion of the sale the money that is gained will be used to recover debts owed to the lender. This will not only include your mortgage repayments but also any fees that have occurred through selling the property. This would normally include any legal fees for the sale, fees associated with an estate agent or fees for repairs that were made to the property in order to sell it.

After the lender has recouped their money then any other creditors who you owe money to for example a second mortgage on the property will be next in line and take their share. If there is anything left over after all your creditors have been paid then you would be entitled to receive it.

Risk Warning: If you enter into a sale and rent back agreement you are unlikely to get the market value of your home and, as a tenant, may only be able to remain there for a limited period. There may be other options available. Please ask for a Key Terms Statement.

We do NOT offer the sale and rent back arrangements anymore. These arrangements are no longer authorised by the Financial Services Authority. No company can legally offer you a sale with a rent back. However, if you’re interested in selling without renting back, please get in touch with us today as we will be able to make you an offer.

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