Stop Reposessions > After A Repossession > Costs Involved

Costs after Possession

Evictees are responsible for the mortgage until the house is sold on and are also liable for all costs associated with selling the house including real estate agent fees, surveyors’ fees, legal fees utility bills, etc.

Shortfall Debt

After a lender has taken a property into possession, interest will generally continue to be charged on the mortgage loan until the property is sold. If the money generated from the sale of the house results is more than the total amount of cash owed to the lender and any other secured lender, then this surplus is returned to the former borrower.

However, if the sale proceeds are not enough to pay off the money owing to the lender after possession, the borrower will be forced to make up the shortfall. Failure to pay the shortfall debt will result in the lender chasing up the shortfall for up to 12 years (five years in Scotland) after the re-sale of the property. The lender will also place the borrower’s name on the Council of Mortgage Lenders Possessions Register, making it difficult for them to obtain a mortgage in the future.