Amanda,(posted 7341 days ago)I deal with many peoples mortgage shortfalls and have no experience of anyone approaching the Financial Ombudsman. However I have seen their involvement in endowment cases and am not impressed by their far right conservative reviews.
However, If the lender is unwilling to supply evidence then why should you pay the debt?
Look up the info on this site and do it yourself or contact one of the who helps section of this site. ALso check out the do's and dont's section.
One final point - The undersold argument is often used but doesnt hold up in court or in complaints unless you have PROOF! To obtain proof you would need to employ the services of a valuation company willing to provide a retrospective assessment of the property. The valuer would charge a fee however if their conclusion is that the property was worth more than than the lender sold it for then you could win - See Stott v Skipton Building Society - Court of appeal as an example. It would not be worth doing this unless you believe the property value was in your opinion signifcantly lower.
Another consideration is that as a claim for underselling is not upon a speciality and therefore the limitation period of 6 years applies - i.e. from been advised of the sale price of the repossesed house you only have 6 years to challenge this - thats why so many shortfalls are pursued to court only after 7 years have elapsed! - see Raja v Lloyds TSB Bank for further clarification.