My property (which i had ceased to occupy) has been repossessed and the lender has told me to make an arrangement to pay an expected #11,000 shortfall. How can they do this when the house has not been sold? It also seems as though they are planning to sell very cheaply, what are my options.

-- john smith (johnsmith@hotmail.com), May 04, 2000

Answers

Don't make any arrangement to pay anything. The Halifax tried this with me when my home was repossessed. They did this on the pretence that if I made an arrangement to pay on an estimated shortfall of 17,000, if it was any more, then I wouldn't have to pay that extra. I told them basically to get lost, because there wouldn't be a shortfall if the lender sold it at the market price rather than auctioning it off.

Whatever happens, they are going to be after you for money. I would suggest that you write back and state that the house is worth xx amount and there is no reason why it shouldn't sell for that (hoping your house isn't in negative equity!). And that you will negotiate with them, when and if there is any shortfall AFTER the sale.

Asking you to make arrangements now, is getting you to admit that you owe them before anything happens, and could weaken your case afterwards. Let them approaach you once the house is sold and then get them to justify their figures.

Best of luck

-- denise (denise@amun-ra.demon.co.uk), May 04, 2000.

*Please* contact me - there is a Guardian journalist interested in tales of underselling/undervaluing, with a view to publishing an article shortly. You could give info confidentially. all best. Eleanor.

-- Eleanor Scott (eleanor.scott@btinternet.com), July 30, 2000.

PS Quote: Skipton v Stott (Court of Appeal 2000) - lenders not allowed to flog of repossessed properties on the cheap simply because they're repossessed. Good luck, E.

-- Eleanor Scott (eleanor.scott@btinternet.com), July 30, 2000.