house repossion

yourdeadwright

Just a quick question, iv always wondered about,

If your house gets repossed cause lets say you owe 30 grand at the end of your morgage and you cant pay it maybe your old or sick or something ?
If the sell it for like 300 grand what happens with the 270 grand that would have already have paied off over the years ?

December2012

The debt, interest, legal fees and sale fees are paid. Any other loans or judgments registered as security on the property with the Land Registry are paid. The owners or their estate if they're dead get the balance.

The_Conductor

yourdeadwright wrote: »

Just a quick question, iv always wondered about,

If your house gets repossed cause lets say you owe 30 grand at the end of your morgage and you cant pay it maybe your old or sick or something ?
If the sell it for like 300 grand what happens with the 270 grand that would have already have paied off over the years ?

What happens to the 270k you've paid off over the years?

Until you pay all your debts secured on an asset- the asset may be sold in satisfaction of those debts. The fact that you have paid 270k- is irrelevant- it is money that you borrowed- and are unable to repay. The 270k- is a sunk cost- you can negotiate with the lender over the remaining 30k- perhaps they may be inclined to write it off, given its barely 10% of the outstanding debt- however the 270k is well and truly gone.

If you can negotiate on the remaining 30k- you may manage to walk free without any debts- however, normally the 30k would be converted into a personal loan.

Forget the 270k- its gone- its a repayment on principle and interest to the lender- its their money, not yours- had you managed to repay all the mortgage to term- you'd have the house at the end of it- however, if you can't- you have nothing, nada.

Eldarion

The_Conductor wrote: »

What happens to the 270k you've paid off over the years?

Until you pay all your debts secured on an asset- the asset may be sold in satisfaction of those debts. The fact that you have paid 270k- is irrelevant- it is money that you borrowed- and are unable to repay. The 270k- is a sunk cost- you can negotiate with the lender over the remaining 30k- perhaps they may be inclined to write it off, given its barely 10% of the outstanding debt- however the 270k is well and truly gone.

If you can negotiate on the remaining 30k- you may manage to walk free without any debts- however, normally the 30k would be converted into a personal loan.

Forget the 270k- its gone- its a repayment on principle and interest to the lender- its their money, not yours- had you managed to repay all the mortgage to term- you'd have the house at the end of it- however, if you can't- you have nothing, nada.

Except in OP's case he's hypothesised that the bank has taken and sold the house for a sale of 300k. He did not specify what the original mortgage was or anything to do with repayments. In his scenario it is equally as likely the whole mortgage was 30k and the downpayment on the house was 270k, and he just never paid a dime.

In this case the 270k is well and truly his, not well and truly gone.

yourdeadwright

Thanks for the answers , i myself dont own a house ( i rent) but i just wondered what would happen in such a case,