Father faces debt for a property that does not exist
Gary Childs has found himself £23,000 in debt for a mortgage on a property which was demolished by the council in 1996.
The distraught father of four says that his terraced home was demolished along with many others to allow for redevelopment in East Manchester.
He says that the house was valued in 1996 and he was told that it was worth at least £26,000. However, he was unable to sale the property as the council told him that it was going to be demolished and that they would make him a payment for the condemned home
Mr Childs arranged with Halifax for his mortgage payments to be frozen until he received his cheque from the council, which he believed would cover the full cost of the house. However, he was shocked to discover that the council would only pay him £7,000 for the demolished building.
As the nil-payment agreement on his mortgage reached its expiration date, Halifax building society started requesting the £23,000 outstanding on the mortgage. The building society accepted £7000 from the council but Mr Childs is still left with a debt of £16,000 for a mortgage on a house that no longer exists.
A spokesman for the council claims that all home owners were offered the best market deals available for their condemned houses. She further added that the council would take no responsibility for residents suspending mortgage payments and that the matter was completely out of their hands.
Savings News posted on 19/11/2007 18:02:19
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