Repo shortfallgreenspun.com : LUSENET : Repossession : One Thread
Having lost a long fight with WBBS back in 93, we opted for moving out and handing back the keys. Subsequently we rented in a different area of the country (the WBBS had our adress, we didn't hide).
Eventually the lease on the rented property ran out and we decided to purchase (partly on the basis that we hadn't been contacted for 6 years, partly because we figured that 6 years of rental payments without a problem would help on getting a new mortgage). So here we are in a property with a 95 % mortgage (yes it is possible) that charges premium rate. We can afford the mortgage but now WBBS is demanding 22K+ in shortfall. Since the eventual purchasers of the property made us an offer which turned out to be the same amount as the WBBS sold the property for, we don't believe that they fulfilled their obligation to reach a "fair" market value. (we had just reduced the price from 90K to 75K for a "quick" sale, the eventual sale price appears to have been 57K).
We have consulted a solicitor who tells us that we don't have a leg to stand on over the 6/12 year issue since the WBBS claim that the sale was made in September 93 (and since the original mortgage was under seal we'd be liable up to 12 years anyhow). And that basically they can claim that any sale price can be made to appear reasonable.
Our grouse is that the WBBS sold the property for more than the original mortgaged amount (despite the apparent shorfall), that we had made substantial payment to them during the 4 years of the mortgage duration, and that despite their claim that they "extensively" marketed the property, inn fact they took the first offer that was made, which happened to be the offer that we turned down as ridiculous.
I have already written to the BS to ask them to explain the sale price (no answer yet). What we need is a specialist lawyer who can help us rebutt their claims.
-- Chris (Chris@matroxusers.com), June 27, 1999
We have received a statement of account from the BS which I am going to turn over to a specialist for analysis since it appears that they are claiming that the 50% interest over capital that they have made over 4 years still leaves us with a shortfall of 50%.
They have told us that they "extensively marketed" the property, and claim that they took 2 professional valuations that valued the property at 54K, and that they accepted an offer of 57K. They haven't provided the actual valuations though.
Is there anyone out there that can help us ?
-- Chris (email@example.com), July 27, 1999.