Mortgage express have put me in debt hell

sneakysam

I have four houses with mortgage express. After Jan 2008 my fix rate finished and covering the mortgage for bad tenants my mortgage have more or less doubled and was £250 more than the rents. So I fell behind and requested from mortgage express a reduce payment plan which they refused they then wrote to all my tenants that they were no longer aloud to pay me any rent they were to pay a company called walker singleton, Why?
Consequently have found out instead of being in two months arrears I am now in approximately nine months arrears, cannot get any answers as to why this would be.
Walker singleton has not been collecting any rents or top-ups from my tenants, but has been accepting housing benefit cheques paid directly to them. Obviously I have no income, now I find myself in spiralling web of debt which of coarse has giving me a bad credit rating so I am unable to get a loan I naturally assumed they took over my account to stop this happening. I assumed that they would have been taking the rents to clear outstanding arrears and current mortgage payments, and of coarse the mortgage rate has massively dropped, my prayers would have been answered and all this would have been over.

Any advice would be greatly appreciated.

maninthestreet

Sell the houses.

astreix

They have appointed a "Receiver of Rent" on all your mortgages and as per your mortgages terms they are well within their right to do that. Maybe have a look at mortgage terms and conditions for more clarity

Most probably you will find that the conditions state that even if the rent collected clear all the arrears at some point of time - they could still choose to keep the receivership in place and use any excess rent collected to overpay your loan. The only option might be to sell the house or remortgage elsewhere (difficult given your arrears record now). However once arrears are cleared ask them nicely and convince them that your problems were temporary, they might choose to release the receivership.

jamesd

Appointing a receiver of rent is normal practice for BTL property as a step before or in conjunction with repossession. You should be prepared for the possibility that they will seek to repossess the properties. You can assume that your tenants are aware of the possibility of this.

You can contact Mortgage Express and tell them that their agent Walker Singleton is failing to collect the rents and seek their assistance in getting that taken care of.

If you have equity in one property that's sufficient to clear the arrears, selling that property is your most likely route out of the mess. Alternatively, use your other income or reserves to take care of it.

If you have no other income or reserves and also no equity, seek professional debt advice and be prepared for the possibility that they will sell all of the properties and start to chase you for any shortfall plus selling and legal costs.

As a property business owner you don't get the protections that come with residential mortgages.

sparkhouse

I think Walker Singletion is given a free ride.
They did manage one of my house for Mortgage express and they did not even go around the property or collect rent properly.
I will advice you to ask them for a statement of all the rent they collect for you and what they have paid to the bank.
I am still waiting on this from them myself and seeking legal advice on either to take them to court for negligence and to report the bank to Ombudsman for not monitoring the activities of Wallker Singleton.

_Andy_

sneakysam wrote: »

Any advice would be greatly appreciated.

Clearly it wasn't 'greatly appreciated' given you never responded or thanked anyone.

sneakysam

Forgive me for not responding i have been so caught up in what is going on i forgot that i had an account on this site i am incredibly greatful for anyone who has taken the time to respond to my post. thank you

980233

I would suggest you having 4 houses put you in debt hell. No wonder the BTL market is in such a mess, no contingency plan either it looks like. This problem is all your own doing.

_Andy_

sneakysam wrote: »

Forgive me for not responding i have been so caught up in what is going on i forgot that i had an account on this site i am incredibly greatful for anyone who has taken the time to respond to my post. thank you

What happened in the end?

Trollfever

_Andy_ wrote: »

What happened in the end?

Did the OP find the Bankruptcy Board?

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