Complex one this... I am helping a relative in mortgages arrears, in fact I am paying all the mortgage and arrears payments, (after pledging so at an earlier and suspended repossession order hearing). There is also a finance company chasing, and they have obtained a variation order and subsequently, a charging order over the property. The finance company are fifth in-line, behind the four other legal mortgagees (of which I am the last and UCB the first). My relative has now found alternative accomodation, and I am obviously keen to bring things to a close, whilst protecting my position. So far the mortgage company, UCB, has proved to be extremely non-communacative; the property value easily covers their position. Mortgage is interest only and due for repayment within 3 years. Negative equity would cut-out the finance company totally, with myself also losing out somewhat. Q. My question is, if I stop paying and presumambly UCB seek to enact the suspended order and repossess, HOW CAN I ENSURE THE PROPERTY IS SOLD AT A 'FAIR' MARKET VALUE???

As a foot note, a independant valuation and offer has been made on the property but so far the finance company has refused to allow the sale by waiving its charging order / caution.

I have been fighting this for years, am tired of it now and need a way out

-- Chris Gill (cjrgill@talk21.com), September 29, 2002

Answers

1. Deduct primary Mortgagee's share of selling proceeds. 2. From remainder deduct selling costs. 3. Take overall selling proceeds and work out what percentage is owed to the other mortgagee's. Apply this to the amount remaining after(1) and (2) satisfied. 4. Make this an offer to the remaining mortgagee's. 5. Without actual figures it is difficult to be more precise.

-- G. Menzies (georgeseventh@aol.com), February 19, 2004.