Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

I am waiting for the outcome of Financial Ombudsman Service investigation. . . . .

I have considered cutting my losses but I have a family that I have to consider so I have to keep on fighting as I don't want to be homeless.

You should write to the lender and ask them to consent to an adjournment of the hearing listed for December while you both await the outcome of the FOS investigation. Tell the lender that if they don't agree you will be making an application to the court for an adjournment and will also be seeking a costs order against them. If they do agree then formalise that with the court. If they don't agree then make an application to the court for an adjournment.

Tell the FOS there is a hearing date and ask for your complaint to be fast-tracked. They can do this if they want. They can also ask a lender to hold off proceedings while they investigate although the lender is not obliged to consent to this.

You won't be homeless because you have children and your local authority has a statutory obligation to re-house you in the event of repossession and eviction.

If your mortgage payments are up to date and the lender is repossessing you on the grounds of breach of contract for living in a BLT then have you not considered the option to move out? If the property is no longer with the LPA Receiver then how could the lender possibly evict any tenants who move in now. It was different when the property was in receivership when they did have the right to get rid of the tenants to sell the property. That was a different legal situation wasn't it?

[Psg2008]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

I will do that today. I will let you know how I get on.

I heard from my final solicitor today that lead me down the garden path thinking I had a chance on human right bases. To find out that they want another £3k and they are advising me to sell

In the event that I don't get a favourable outcome from the FOS

I think that I may need to prepare for the worst by trying to sell. I am in negative equity of approx £12k

Almost £30k has been applied to my account in the last 2 years. The lender has only been able to account for 40% as I been quoted for repairs that have be conducted or never existed

Can someone tell me how I can go about challenging this debt. As I have been trying to get this information from my lender and receiver for over a year. I have also been told that I can address this point within possession hearing

I need to mitigate these charges by bringing a claim against my lender. Also I need delay court proceedings in order to find a buyer.

I the meantime I need to find £3k in order for solicitor to comply with the order from the directions hearing. Whereby I need to complete a witness statement and comply with full disclosure

Is there anyone out there that can help?

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Can someone tell me how I can go about challenging this debt. As I have been trying to get this information from my lender and receiver for over a year. I have also been told that I can address this point within possession hearing

I need to mitigate these charges by bringing a claim against my lender. Also I need delay court proceedings in order to find a buyer.

I the meantime I need to find £3k in order for solicitor to comply with the order from the directions hearing. Whereby I need to complete a witness statement and comply with full disclosure

I've already suggested that you may be able to file a counter-claim for your losses. Your solicitor's quote of £3k legal fees to comply with disclosure and complete a witness statement is an obscene amount of money. Try sending a PM to ATW to see what he has to say.

If you want the court to postpone possession/eviction while you find a buyer you will need to demonstrate that the property is currently on the market and preferably a ready, willing and able buyer has already made an offer.

[Psg2008]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

Can I ask a question. If my lender seeks possession of my home and there is a second charge on my home for another creditor. Will my lender experience problems when he tries to sell it on the open market as my property is in negative equity

I know that are probably not concerned about the second charge lender.

But won't they need to seek consent of the 2nd charge creditor in order to sell the property at an amount that the 1st and 2nd Charge lender will not be able to recoup the outstanding debt?


Please advise

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

If my lender seeks possession of my home and there is a second charge on my home for another creditor. Will my lender experience problems when he tries to sell it on the open market as my property is in negative equity

But won't they need to seek consent of the 2nd charge creditor in order to sell the property at an amount that the 1st and 2nd Charge lender will not be able to recoup the outstanding debt?

As far as I am aware the owner of the second charge can effectively block the sale (not the repossession) on the basis that if they don't receive the monies due under their charge they will not provide the charge release form. This would mean that the second charge would remain on the title deeds at Land Registry making it almost impossible to sell to a third party (unless the buyer is willing to clear the loan as part of any purchase price deal).

A lot will depend on whether the property is in negative equity based on a quick sale at auction following repossession or would it be in positive equity if sold at the full market value. If there is enough equity to satisfy the first charge with a quick sale but not enough to satisfy the second charge then the second charge holder may dig in their heels and insist on a sale on the open market so that they can recover some if not all of their debt.

In some circumstances the lender can make a deal with the second charge holder to pay them off from the proceeds of the sale and then the mortgage lender will chase you for any shortfall of the combined debt.

If there isn't enough equity to clear the second charge loan then even if the sale does go through (and they remove the charge) they will still chase you for the debt.

The mortgage lender has to give consent to a second charge being applied but they have no control over it being removed.

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

If there isn't enough equity to clear the second charge loan then even if the sale does go through (and they remove the charge) they will still chase you for the debt.

I've just remembered you were bankrupt so maybe any shortfall will go into your BR even though you've been discharged (have you?) because these loans existed at the time you went BR. Sorry, BR is not my area of knowledge Out of curiosity why wasn't the property sold as part of your BR since it wasn't your home at the time?

[Psg2008]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

None of my properties were sold and my trustee didn't even try to recoup the rent income from the tenants or managing agents. So my tenants just lived rent free.

Some of them were just in arrears with pending legal action. So I was able to catch back up the mortgage arrears and continue as per normal

The lenders stated that they were not concerned as the said their liability was secured. They would only deal with my trustee if their was a shortfall of the sale

As I applied for a vesting order for my rights to be reinstalled in the property the shortfall will not go in my estate. As this is something the judge warned me of when I applied for the order

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

I can see you're being given conflicting information on another forum so maybe I should step aside so as not to cause you even more confusion. Sadly the poster on that forum has not grasped the facts

http://forums.moneysavingexpert.com/...2#post63647342

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

As I applied for a vesting order for my rights to be reinstalled in the property the shortfall will not go in my estate. As this is something the judge warned me of when I applied for the order

I fear the judge was right to warn you of this potential pitfall. How refreshing to see a judge giving proactive advice. Did you have a solicitor advising you at the time because if so you maybe looking at a case of professional negligence?

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

None of my properties were sold and my trustee didn't even try to recoup the rent income from the tenants or managing agents. So my tenants just lived rent free.

^^^^ This looks all wrong to me. I'll see if someone with BR knowledge can comment on this thread because common sense says the OR must act in the best interests of the creditors (and you too?). Surely not collecting (rental) income due to you is bang out of order.

Why don't you start a separate thread in our bankruptcy section to see if that may shed some light on this complicated stuation. I think the two subjects of your imminent repossession (and eviction) and any questionable BR procedures could be related.

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

I couldn't agree more with the last line in this post on another forum (the red highlighting was done by me)

Thread: Help!BTL lender trying to sell my home and I am not in arrears View Single Post

# 13 antrobus Today, 2:45 PM
Fantastically Fervent MoneySaving Super Fan Join Date: Oct 2010 Posts: 6,246 Thanked 9,137 Times in 3,581 Posts	Quote: Originally Posted by Psg2008 ... My mortgage lender appointed LPA receivers a few months prior to my bankrupty.... Are you 100% certain they are LPA receivers? The powers of a LPA receiver are actually quite limited; it does not include a power of sale for example. However the mortgage deed itself may well confer additional powers to the receiver - but then you'd have to read that document to find out what they were. Quote: Originally Posted by Psg2008 ... 2 years later my lender evicts my tenants in order to obtain vacant possession. As they want to sell my property .... If the receivers have been validly appointed and have the power of sale, then they are entitled to do that. Quote: Originally Posted by Psg2008 ... I have moved into the property in order to have the LPA receiver deinstructed and stop the last trespassers legal poceedings. Plus I need somewhere to live with my family (2nd breech of contract) .... By moving into the property I don't think that puts you in any different a position than anyone who gains access to an empty property and occupies it. You're squatting. Quote: Originally Posted by Psg2008 ... each time I put tenants in the property they evict my tenant. This has occurred twice .... Why are you trying to put tenants into the property? The receiver appears to have legal possession of the property; i.e. it's not yours any more. All you're doing is bumping up the costs as it obliges the receivers to evict said tenants. Quote: Originally Posted by Psg2008 ... Can someone help me with some advice to try and resolve this problems and explore the options stated above... Get a solicitor. Don't take that much notice of what you're told on an internet forum.

antrobus

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[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

^^^^ My Copy & Paste skills aren't brilliant but I think you get my drift.

[SXGuy]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

^^^^ This looks all wrong to me. I'll see if someone with BR knowledge can comment on this thread because common sense says the OR must act in the best interests of the creditors (and you too?). Surely not collecting (rental) income due to you is bang out of order.

Why don't you start a separate thread in our bankruptcy section to see if that may shed some light on this complicated stuation. I think the two subjects of your imminent repossession (and eviction) and any questionable BR procedures could be related.

Only knowledge of BR is being an Ex one myself, and i can tell you, the OR can not be bothered to do anything, so it wouldnt suprise me if they didnt bother because trying to collect the rent would have cost more to them than what they would receive, i dont know im just assuming but i can tell you, they did F all for me and couldnt be bothered to sort out any one chasing me for money, so i wouldnt be suprised if they acted the same the other way around.

[PlanB]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

the OR can not be bothered to do anything, so it wouldnt suprise me if they didnt bother because trying to collect the rent would have cost more to them than what they would receive, i dont know im just assuming but i can tell you, they did F all for me and couldnt be bothered to sort out any one chasing me for money, so i wouldnt be suprised if they acted the same the other way around.

I hear this a lot. In this case if the OR's *laziness* has placed the OP in an avoidable negative financial situation then I'd like to think there is some way for him to get redress. If the OR had collected the rent then the debt the OP now faces (shortfall from mortgage repossession) would be less.

Not good

[SXGuy]

Re: Please help mortgage lender is trying to repossess my BTL and I am not in arrears!

From my expierence, i ended up paying non domestic rates on a unit that the contract should have been nulled the moment i was made BR. All the OR would do was respond to any letters directed their way by the council. The council decided to hound me instead insisting i owed it. The landlord refused to end my tenancy for a further 3 months after the date of my BR, so all the council cared about was that i still have a duty under the tenancy to pay rates.

Needless to say, because of the landlords failure to act promptly, and the failure on the part of the OR to deal with the matter, i was given an order by the court to pay the arrears, over 2k.

I had no choice but to pay it with money my mother lent me. At the time, i knew little about procedures and thought a letter to the court would fix things, but it later appeared the court ignore the letter, or rather i failed to follow correct procedure, and saw favour in the councils claim.

The insolvency service, gave me a number to contact my trustee to discuss the matter, and all he was prepared to do, when i eventually got hold of him, was tell me how the council staff are just civil servants and are talking rubbish, ensured me i was right but did nothing to help solve the matter.