Mortgage question

Helli2020

I have several other properties other than my main family home and in the past some unsavpoiury tennants......anyway long story short, there has been shortfalls in the past and one of the properties has gone into receivership.

Now as it was explained to me this just means they collect the money direct from the tennant and either keep it going or sell. The money then goes directley to the lender.

However the lender is still taking the money from my business account which ofcourse is bouncing back because there is no rent in there. They have been doing this for the last 3 months.

My question is can they do this and what do i do about the charges each time as they are stacking up rapidly?

If they know its in receviership as they appointed them, why keep trying to collect the nmotegage?

anselld

I imagine, unless you have somehow ring-fenced this property via limited company etc, they will eventually try to recover any outstanding costs from you and/or your other assets.

Helli2020

how do you mean ring fenced via a ltd company?

Thrugelmir

Helli2020 wrote: »

I have several other properties other than my main family home and in the past some unsavpoiury tennants......anyway long story short, there has been shortfalls in the past and one of the properties has gone into receivership.

Now as it was explained to me this just means they collect the money direct from the tennant and either keep it going or sell. The money then goes directley to the lender.

However the lender is still taking the money from my business account which ofcourse is bouncing back because there is no rent in there. They have been doing this for the last 3 months.

My question is can they do this and what do i do about the charges each time as they are stacking up rapidly?

If they know its in receviership as they appointed them, why keep trying to collect the nmotegage?

You have other properties so one would assume other income with which to repay the debt owed.

Helli2020

You know what they say about assumption! All three properties have been affected by a down turn in rental which in turn has resluted in me having to top them up, so no spare cash. If there was i wouldn't be in this situation.

anselld

I mean, unless you owned the property within a limited company any cost remains your personal liability. That means you will be liable for the mortgage fees, the receiver fees, etc. If these cannot ultimately be recovered by sale of the property the mortgage company will probably come after you for your other assets possibly including your own home.

I do know what they say about assumption, yes, and no, I cannot say for sure what will happen, but in my opinion it sounds like you are heading for trouble.

Thrugelmir

anselld wrote: »

I mean, unless you owned the property within a limited company any cost remains your personal liability.

Limited liability only extends to the Company. Not to any other undertaking or warranty given to secure the funding given in a personal context.

Banks rarely lend (even commercially) without adequate security (ie trade debtors).

Brock_and_Roll

Reading through all the OP's posts its seems that the property portfolio is either not held in a Ltd company or if it is, there will be personal guarantees etc.

The OP should be aware therefore that the bank is managing this situation entirely for their own benefit. Collecting rents to pay down their loan whilst at the same time racking up fees which ultimately you will have to pay. These fees will come ultimately from the sale of the properties and if there is a shortfall eg property sells for 100k but loan = 110k and fees 10k, they will come after the OP for the 20k and the family home is at risk if there is any equity in it.