This is actually a heaven-sent opportunity for you.(posted 8080 days ago)There isn't anything to stop them doing this - meaning that it is not a breach of criminal law. However, it may be a breach of various civil laws. If it is a breach of civil law, then you can't stop it, but you may be able to use it to claim compensation against them if you can show that their action has damaged your interests. Or you might be able to use it to offset damages that they try to claim from you later.
Here's why it is a heaven-sent opportunity: You can go to estate agents concerned, act like a buyer who is interested in both properties and get the house particulars. This means you will have irrefutable evidence that the lender is under-selling your security property. You should also photograph both properties and make sure the pictures show the condition of both properties (and date the prints when you get them) You should also grab particulars for similar properties in the same area from other estate agents *especially if they have just been sold*. This gives you irrefutable evidence of real sale prices in the area. Date every sheet and store it carefully.
Also, read the do's and don'ts pages of this site, which are in the Repossession section. They go into some detail about what to do after you are repossessed and before the property is sold.
I've been just finished an analysis of 61 shortfall claims. Underselling appears to have gone on in almost every case. This underselling hurts the repossessee but it also hurts ordinary, non- repossessed homeowners in the area. On average, this kind of lender underselling stripped [pounds]22,829 from the value of nearby homes owned by non-repossessed homeowners.
Yup, repossession under-selling directly damages other homeowner too.
Good luck,
Lee