House repossession and negative equity

[DENZIL88]

A relative has had a repossession order served due to non payment of mortgage over a 9 month period, due to illness and not getting sick pay at work. They have been given a date to move out (within the month). They are about £10k in negative equity, with the current climate. They are living with their Dad at the moment. What happens next? When do they need to repay negative equity, can the building society add any extra fees on to that? Are they entitled to Council accommodation?

[ummmm]

The bank will take possession of the house and sell it. Probably for less than the market value for a quick sale. They will then owe the bank the outstanding balance. The bank would have been putting on a charge for every letter they've sent regarding the arrears. So they'll owe 9 months + charges + the difference between mortgage and sale amount.

They will need to put their name on the council waiting list. Depending on their circumstances it is likely to be a long wait.

[DENZIL88]

"They will owe the bank the outstanding balance" thats my point - how can the bank ask for £10k plus, when they couldn't even afford to pay the mortgage?

[daffy654]

Why should the bank have to be 'out of pocket' because your relative is not able to pay them back? They took out the loan (mortgage), signed an agreement and must pay it back.

[DENZIL88]

Calm down Daffy I know that I am not stupid ! Just wondering HOW and WHEN the bank can expect them to pay it back, it stands to reason if they couldnt pay the mortgage they sure as hell cant pay 10k plus ........?