# What happens....



## spitfire (Feb 10, 2007)

when a mortgage company or lender goes bust?


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## M4D YN (Nov 24, 2007)

you cross your fingers that your with them and they lose your paper work and details :thumb::thumb::thumb::thumb:


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## spitfire (Feb 10, 2007)

M4D YN said:


> you cross your fingers that your with them and they lose your paper work and details :thumb::thumb::thumb::thumb:


:lol:


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## The Cueball (Feb 8, 2007)

spitfire said:


> when a mortgage company or lender goes bust?


Another company would buy their debtors books probably, and you would still owe someone the money....

:thumb:


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## -ROM- (Feb 23, 2007)

The Cueball said:


> Another company would buy their debtors books probably, and you would still owe someone the money....
> 
> :thumb:


Exactly right, a bigger fish would buy the mortgage book.


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## spitfire (Feb 10, 2007)

MMMmmm, I heard a story which leads me to ask that question. I'm not sure of the facts yet and I may be being told porkie pies. So I'll follow that question with another. Under what circumstances would a lender offer to buy back a house?


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## The Cueball (Feb 8, 2007)

spitfire said:


> MMMmmm, I heard a story which leads me to ask that question. I'm not sure of the facts yet and I may be being told porkie pies. So I'll follow that question with another. Under what circumstances would a lender offer to buy back a house?


None that I can think of...remember the house is actually theirs already!

There are companies out there that will buy a house and rent it back to the people who 'own' it...but they only offer about 70-80% of the market value, and IIRC there are loads of small print etc etc....

:thumb:


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## spitfire (Feb 10, 2007)

The Cueball said:


> None that I can think of...remember the house is actually theirs already!
> 
> There are companies out there that will buy a house and rent it back to the people who 'own' it...but they only offer about 70-80% of the market value, and IIRC there are loads of small print etc etc....
> 
> :thumb:


Ok, what about then if you were to default on mortgage payments. Could they then offer to buy the property from you for a given price taking into account what you have paid towards the house. I know they technically own the house but what would happen to the contributions made, given that you've paid say 50% of the mortgage. You can tell mortgages aren't my strong point


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## Avanti (Jan 17, 2006)

spitfire said:


> Ok, what about then if you were to default on mortgage payments. Could they then offer to buy the property from you for a given price taking into account what you have paid towards the house. I know they technically own the house but what would happen to the contributions made, given that you've paid say 50% of the mortgage. You can tell mortgages aren't my strong point


After the last house boom, there was a spate of self repossetion going on, basically a person bought a house for say 100k, soon after it was worth 80k, so the mortgager simply give the keys back and bought a house on the same estate for less and left the lenders with the problem. Now it is not easy to do that. You have loaned the money and that is what you are responsible for, basically they are not really interested in repossesing property , say you had a 100k mort and the house was repo'd and sold for 90k , you would still owe the balance


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## richjohnhughes (Sep 24, 2007)

spitfire said:


> Ok, what about then if you were to default on mortgage payments. Could they then offer to buy the property from you for a given price taking into account what you have paid towards the house. I know they technically own the house but what would happen to the contributions made, given that you've paid say 50% of the mortgage. You can tell mortgages aren't my strong point


i guess they would look to repossess it from you - sell it - give you the difference, less fees.


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## spitfire (Feb 10, 2007)

richjohnhughes said:


> i guess they would look to repossess it from you - sell it - give you the difference, less fees.


All the answers you guys have given me are pretty much what I was thinking. The spanner in the works for me is that the people concerned have just bought a bigger house. I can't figure it out quite frankly.


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## Avanti (Jan 17, 2006)

spitfire said:


> All the answers you guys have given me are pretty much what I was thinking. The spanner in the works for me is that the people concerned have just bought a bigger house. I can't figure it out quite frankly.


Depends on their financial circumstance, I owe next to nothing on my house and could get a mortgage for something bigger without selling up, yes I could now default on the mortgage but it wouldn't make sense to do so.


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