Shortfall with a Building Society (or former one) then read this!greenspun.com : LUSENET : Repossession : One Thread
Now as some of you know I have been investigating some companies in the way they conduct themselves in relation to Mortgage Shortfalls. I don't know if I have good news for you or not but listen to what I feel I have just found out from one of my current investigations.
Any of you had your Mortgage with a former Building Society turned Bank like: Halifax Bradford & Bingley Alliance & Leicester etc
Well under the original Building Societies Act 1997 you were a member to the Society if
(2) In this Act, in relation to a building society- "borrowing member" means, subject to sub-paragraphs (2A) and (2B) and paragraph 29(2) below, an individual who is indebted to the society- (a) in respect of a loan which is fully secured on land; or (b) if the rules of the society so provide, in respect of a loan which is (within the meaning of the rules) substantially secured on land; "shareholding member" means a person who holds a share in the society. (2A) If the rules of a building society so provide, an individual shall cease to be a borrowing member at any time if at that time the society- (a) takes possession of, or exercises its power of sale in relation to, the whole or any part of the land on which the loan is secured; or (b) obtains an order for foreclosure absolute or, in Scotland, foreclosure in respect of the whole or any part of that land. (2B) Unless the rules of a building society so provide, an individual shall not be a borrowing member at any time if at that time the loan is owed to the society in equity rather than at law."
So if between your default and repossession, you Building Society converted to a bank then you should have been entitled to shares. However if the Society also had an AGM during the period then you should be entitled to voters rights, or were these taken away as well. Check out newspapar archive to see when the spefic dates your Building Society converted and at least it gives you a little more ammo to fire at them.
Also please note that Building Societies have a to try to obtain the best value reasonable for the property.
-- Geoff Winters (Geoffemail@example.com), October 18, 2002