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Thread: Who signed for our mortgage?

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  1. #1
    SRo
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    Default Who signed for our mortgage?

    My family and I were 'assigned' a mortgage from a developer when we bought off plan near Estepona.

    Our original mortgage offer was for 129,000 euros which we increased to 138,000 euros to buy a furniture package for our apartment which we were told we had to buy as part of the deal. We have since noticed that our mortgage is actually for 180,000 euros. We DID NOT sign for this increased mortgage but think perhaps our solicitor who had power of attorney did. We have no paperwork pertaining to this bigger mortgage.

    We are struggling to keep afloat with our payments and are chasing down evidence of us agreeing to this mortgage. Can a power of attorney solicitor agree a figure if it has not been approved by the owners and the owners be liable for this loan?

    The owner of the mortgage company from where our original offer came is being investigated in the UK by the Financial Services Authority for the fraudulent sale of mortgages. If we have been mis sold a mortgage does this also give us any grounds to dispute the greater loan amount with which we seem saddled?

  2. #2
    Senior Member
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    Dear Sir/Madam,

    In short, yes, you will be held liable as he used a POA granted by yourselves.

    Another matter being if you have recourse against your lawyer for not following your specific mandate/instructions. You must gather evidence.

    Why do you mention 180,000€? Where do you get this figure from? Perhaps you are confusing it with the full mortgage responsibility.

    Yours faithfully,

  3. #3
    Unregistered
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    Default Who signed for our mortgage?

    Hi
    I'm sorry I don't quite understand...

    The mortgage offer paperwork shows we were offered a mortgage of €138,000 and this is the figure we understood to be paying off over 15 years, this is the figure we understood out POA to be signing off. As we look at our mortgage statement it is clear that a mortgage was arranged for €180,000 WITHOUT our knowledge or approval and it is this figure we are paying off over 20 years. Both figure and year terms are different to those we have agreed to. Surely we cannot be held responsible for a solicitor who has not made us aware of a higher mortgage being arranged without our sign off going ahead without letting us knowing of the increase from €138,000 to €180,000.

    We believe the developer/mortgage advisor (now being inspected for fraudulent mis-selling of mortgages) had the apartment revalued in order to remove the equity before we completed, which resulted in us BEING ALLOCATED (not offered and agreed to) a larger mortgage.

    What do you mean by full mortgage responsibility?

  4. #4
    Senior Member
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    Dear Sir/Madam,

    Quote Originally Posted by Unregistered View Post
    Surely we cannot be held responsible for a solicitor who has not made us aware of a higher mortgage being arranged without our sign off going ahead without letting us knowing of the increase from €138,000 to €180,000.
    Regrettably, as per my reply above, you will be held personally liable before your lender.

    Another matter being, again as per my reply above, any recourse you may have against your solicitor for not having followed your mandate. Which will require you gathering evidence, as you yourself write.


    Quote Originally Posted by Unregistered View Post
    What do you mean by full mortgage responsibility?
    Besides the principal you must tag on the additional fees and expenses (legal interest added on top, delay interests, court related expenses etc.). This is what's known as the full mortgage responsibility. It's a legal concept.

    The principal is what you actually borrowed from the bank. I was asking you if you were confusing perhaps the principal (138,000€) with your full mortgage responsibility.

  5. #5
    Unregistered
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    Default Who signed for our mortgage?

    Oh dear this is very disappointing and worrying to hear. So our POA could have signed for ANY mortgage amount and we would be liable?

    I have asked the bank to supply paperwork pertaining to this mortgage as we have never received any copies and we wondered against what authority they were operating this mortgage. If they are unable to uncover any paper work what would the outcome be? They hold our deeds presumably, so could they hold them to ransom for whatever they deem the mortgage value to be?

    I will try and check whether the total 180,000 incorporated the taxes, fees etc

  6. #6
    Senior Member
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    Quote Originally Posted by Unregistered View Post
    Oh dear this is very disappointing and worrying to hear. So our POA could have signed for ANY mortgage amount and we would be liable?
    Yes, that's exactly the purpose of a POA, unless you restrict it.

    But in practice a lender will only loan a given amount.

    Bottom line, they will be held personally liable, yes.

    Lenders always hold the original Mortgage deed, they will only handout a copy. You can always request a copy from the Notary where it was signed.

    I trust you do have their Binding Offer specifying the loan's terms...

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