Can Leeds & Holbeck add £4200 on top of the sale price of repossessed house which covered all debts apart from £500 ?greenspun.com : LUSENET : Repossession : One Thread
Leeds & Holbeck sold my house for £46500, after repossession. My mortgage was for £41087, arrears £2500, and they said they wanted £47000 on court document to cover 'costs'. 2½ years later they have decided to write to me at a new address (they failed to contact me at the address I had supplied them with for all correspondance 2½ years ago)asking for £4200, can they charge what they want ? Do I go to court and fight, how much will they settle for out of court as a percentage ? If I settle can I clear my name on the credit lists ? Thanks
-- Alison Hainey (email@example.com), July 25, 2001
Can you take out some of the bold etc, so that we can see the actual figures.
First and foremost, you need to get documentation from them confirming their accountancy. There will undoubtably be some fees they incurred, but there was a little equity still in the property and this will have been used (46500 sp - (41000+2500)=3000). Estate agency fees will be approx 2% of the sp, say 1000, leaving 2000 to cover repossession fees and the rest. This should have been adequate although you don't say how long the property was in their hands prior to sale (every month increases your arrears by the missing payment)...So I'd strongly suggest getting them to account for things although there isn't a full picture here.
You will disappear off the bad-debt list once you settle - you can make it a condition of the settlement - but there also a 'repossessed list', which it is more difficult to get off. Others know more about this than me.
-- (firstname.lastname@example.org), July 26, 2001.