Mortgage question

[Booldawg]

If I bought a house and had a 50% deposit from a sale of another house and got a mortgage for the other 50&, what would happen if if defaulted on the mortgage and the house got re-possessed - the mortgage company only get back what they lent me or would I lose all?

[Loosehead]

They would recover what you owe them plus costs and you would get the change. They may not try very hard to get a decent price though, they only care about what they are owed.

[WoWo]

There are laws to protect you on this, they are obliged to get the best price possible. But all that really does is to stop them giving it away, as long as they have made reasonable attempts to sell at a reasonable price thats OK.

The problem with property is that it's difficult to say what the "value" is, it's essentially the price somebody is willing to pay, most houses in the situation you mention are sold by auction so what somebody pays can vary a fair bit.

[WoWo]

I should add the repossessions are not undertaken lightly, if you were getting in to difficulty then you could attempt to sell the property yourself for a value you feel is fair (of course the wolk would be at the door in that circumstance).

[Booldawg]

thanks all! its ok, i'm not about to be repo'ed, i just wanted to know the score to protect my equity.