Deeds with the law society

tigershould

Strange one here...

Friend of mine's solicitor has been struck off by the law society. The law society have contacted him to advise that they have all the paperwork from their house transaction incl deeds. His solicitor didn't do the necessary when he purchased his house. The law society asked my friend to find another solicitor to collect the paperwork and register the property and pass the deeds etc to the bank. The bank have said they won't accept the deeds directly from my friend it has to be thru a solicitor.

So my friend went to the CAB who said (either off the record or tongue in cheek) that because the bank doesn't hold the deeds (and therefore cannot repossess the house) that my friend is under no obligation to pay their mortgage!!

My friend suddenly has a mad idea to stop paying their mortgage and to walk from their negative equity. He thinks he can tell the bank to stick their mortgage and that he can start saving to move into another house with another mortgage!

I've told him he's mad and it will end in tears because his credit rating will be ruined if he tried to refuse paying his mortgage based on the fact that his deeds are in limbo! I told him to just pay for a new solicitor and get the necessary done.

What do you guys think? Anyone have any similar experiences?

Chris_5339762

Its dishonest, no matter what way you look at it.

Marcusm

I'd be surprised if he got that advice from any reputable advisory agency. If the mortgage (which is the bank's hold over the property not the loan) has never been registered then the bank does not have an easy route through to take possession of the house. Assuming the funds were advanced and there is written evidence of that and your friend has acknowledged the debt by continuing to make payments in accordance with the relevant schedule, I doubt that he can dodge the debt aspect. It is true that the bank's position is far from ideal but equally your friend is not registered as the owner of the property, i.e. he cannot sell it other than to an idiot at this stage.

Based on posts here over the past couple of years there are a fair few instances of incomplete conveyances and abandoned practices. The Law Society's compo fund has a set price to pay for this work but, IIRC, the client has to find a new solicitor willing to do the work on this basis.

tigershould

@chris yeah, I know - he's just got this crazy idea in his head.

@marcusm - as far as I know he says it was from 'free legal aid' and that rather than actual advice to do this, the advisor was just commenting that technically the bank was powerless. He's not interested in selling, he just wants out and thinks this is his chance.

jimmycrackcorm

Your friend still signed the mortgage loan which obliges him to pay. The only point of the deeds is that it gives the bank some security but has no other relevance. However with negative equity, this has no advantage and your friend still can be chased for the amount he borrowed.

He's a bit silly to think he can sign a contract and walk away.

valleyoftheunos

If he were to walk away proceedings and judgment would no doubt swiftly follow, along with an order for costs.

Your friend needs to get a Solicitor straight away, he is in dire need of actual legal advice.

gaius c

Ah yes, yet another "friend" looking to dump their debts on the taxpayer.

Grolschevik

tigershould wrote: »

So my friend went to the CAB who said

I initially read that as "Criminal Assets Bureau" and was very confused...

tigershould

gaius c wrote: »

Ah yes, yet another "friend" looking to dump their debts on the taxpayer.

I'm taking it youre suggesting I'm using my 'friend' to disguise my own intentions. You don't have to believe me but it seriously is a friend who has this notion in his head. I also carry the burden of this country's debts thru my taxes which isn't easy to swallow when I borrowed within my means. I'm fortunate enough not to be in negative equity, have been over paying my tracker and am prowling the market looking for my dream home. No dumping of my debts on the tacpayer thank you very much. My friend isn't so lucky, and while I don't condone his attempts to try and walk away, I thought it was an interesting, albeit flawed, angle he was coming from.

Seems to be fairly common situ too (that solicitors haven't completed their duties.)

Kosseegan

The bank can sue for the price of the house for one. They can apply for an order of specific performance against the solicitor on his undertaking for another. The chances of the CAB saying something like that are nil. Someone is dreaming.