FOS has published its approach setting out what FOS will take into account when considering a dispute over a mortgagee sale and in particular when a member Financial Services Provider (FSP) takes possession of a borrower’s home for sale.

If there is a dispute over a mortgagee sale, FOS will look at how the FSP:

• worked out the property’s value
• marketed the property, including advertising and inspections
• repaired, maintained or improved its condition
• sold the property and set the sale price
• used the proceeds of the sale
• communicated with the borrowers.

If FOS believes the FSP did not take reasonable care, it may award the borrower compensation for any difference between the sale price and the market value of the property sold.

The guide contains 4 case studies focussing on advertising and valuations.