Positive Equity!

[cricketboy]

My house stands to be repossessed very soon. I am resigned to this, but the fact is that there is a quite significant amount of positive equity on the property. If the house is resold for a 'fair price' as I believe it has to be, what happens to the money which is over and above the cost of the original mortgage? Do I get it? Or the mortgage company?

[dzug]

You will get whatever is left after the mortgage company has been paid less any fees, etc

It will be sold to the highest bidder either is a real auction or an informal one. It is the fact that it is competitive that makes it fair, not the actual amount it is sold for. You may well consider it a miserly price.

[themas]

If you have time, you would very likely get a better price (and pay less in legal and agent fees etc.) if you can sell the house yourself. If you put the house on the market now you may be able to persuade the mortgage lender to defer Court action for a short period to see if you can get a sale. If they won't, you may persuade a judge to defer if you give evidence of active marketing and - preferably - an offer ready to proceed.

Of course, this won't work if the Court order for possession has already been granted but you could still try to agree something with the lender.

[Hgrove]

I agree with above replies. The problem with repossession from your point of view is that they will sell your house as cheaply and quickly as possible - they only want to get enough to pay themselves. They will not try to get the best price for you. As long as there is enough for them, they will not care. So if you can still sell it yourself, it is best.