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repossession

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  • July 28, 2006 at 2:51 pm #22523
    krissyf
    Participant

    Hi

    I’m hoping someone can give some advice on this one.

    We have a claimant who has an interest in a property (former home), but we’re not sure how to treat it. The property is in the process of being repossessed (date set for September) and is not at present up for sale.

    The background is that the claimant tried to sell the property but the bank wouldn’t let it go through at the last minute because there would be negative equity at the sale price and they didn’t have the means to repay the remaining amount.

    We’re not sure whether to go down the route of getting a valuation etc which would presumably lead to a nil capital value due to the negative equity, or is there any other way to deal with the situation. Obviously if the property had been up for sale then we would be disregarding, but I can’t find anything that refers to whether we can do this in the case of a repossession.

    Thanks

    July 28, 2006 at 3:20 pm #8435
    Kevin D
    Participant

    If the “incumbrance” (i.e. outstanding liabillities) on that property is equal to, or is more than, the value of the property, then the value is nil.

    Regards

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