Defaulting on two mortgages and going abroad

tigeon

well it happened !!
four years ago i owned 5 properties, 3 houses of which one as the main residence and the other two were flats, which i use to rent for tenants. It all went well until the crash came, and i could not sell any of the flats, but i manage to sell the main residence, the other two houses for little money, after taking off all expenses.
On the main residence I had a second charge of 90,000, which i managed to move on one of the flat, to get the chance to sell the house.
the Mortgage was paid off and i cashed the difference, of 42,000 gbp, which i used for repaying few credit cards debts, some other debts.

Having been left with little money, and with high mortgage fees on the two flats, i decided to go live abroad.
Before taking the big decision, i have tried to call my lenders and talk to them quite few time. It all went wrong.

At the moment i cannot imagine what happened, and if the lender managed to recover all its expenses.
I reckon i got more than 100,000 pounds defaulted between credit cards and mortgage payments.
What will happen when i get back into the uk? I dont own anything on my name, and am seriously in trouble with money.
I am thinking that i have seriously been scammed by a couple of guys that, at that time were offering to buy flat, only by putting down 5,000 gbp.
The tecnique they have used was obviously possible with the help of a corrupted surveyour, and the developer, who overvalued the flats, in order to use the extra equity insted of cash towards the deposit. Its called ability to use equity to finance down deposit.

When i go back to england, will i be prosecuted? Obviously i did not do anything with the intent of fraud or anything like that.
I recognize that i did not manage well the money i had in my hands at that time, and went on spending money for refurbishing the houses, repaying high interests rates, repaying credit cards and so on.
Will i ever again be able to open a simple bank account ? HOw long do negative credit record stay on my report ?
Thanks a lot

mrs_mum_3

Just go abroad for about 3 months, enjoy yourself, maybe get a job over the summer selling timeshare. As long as you keep your nose clean and then come back as if nothing had happened everything will be fine and no one will come looking for you

maninthestreet

mrs_mum wrote: »

Just go abroad for about 3 months, enjoy yourself, maybe get a job over the summer selling timeshare. As long as you keep your nose clean and then come back as if nothing had happened everything will be fine and no one will come looking for you

Really? Somehow, I don't think so..

SouthCoast

Some information on mortgage shortfalls:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

Thrugelmir

Running away from your problems hasn't helped. You'd been better off being made bankrupt and then starting afresh.

tigeon

I thought bankrupt was an exclusive "privilege" of public companies and not of individuals, or private investors.
Wonder how long my negative records wil be kept on the equifax or experian.
I am also surprised why all major lenders use to easily give big chunk of money, to private investors and kept on over-valuing property prices, at that time.
I started off only with 5,000 pounds, and used none of little money to buy 5 properties, dreaming to get out of the rat race. Now am back into it with a lower salary.
I have heard, that now times have changed and nowadays recovery agencies, are harder than before, bullying defaulters and so on. Is that for real ?

getmore4less

Go bankrupt if you can find the fees and realy are in a mess.


Why did you need to sell the rental should have covered the dets if the business plan was correct.

Who were these two guys were they part of a property is easy company.

tigeon

i called them "two guys" as they were not operating under any association or under any company name, that am aware of. They were quite professional often changing office, and dealt with many investors.
I dont know if you remember but about 4 years ago in uk you could properties at BMV (below market value) from the developer. The reason for the developer to get you such a huge discount of over 15% was because some guys were purchasing more than than flats.

Then they would use one of the suveyors they know, and value the flat at higher price: The result was that, they would get actually paid by the mortgage company for buying a flat. They would re-sell it to investors offering massive discount, by putting down only 5,000 pounds.
It sounded good, that just by paying 5,000 you get a flat worth 320,000.
Trying to resell the flat at Mv or even BMV was impossible. Its like having negative equity, and the rent from the tenants, would not cover the mortgage. Mortgage 1,390pcm / Tenants 950pcm.

For abvious reasons i cannot mention teh name of teh two guys, but i did mention them to the lenders, but they just would not listen. I mean i was not talking really to the lender, but to a representative, who gets the monthly salary, to say no, no no ... "Mr x its a must your full repayment... mr x you must ensure that full payment is made and so on...

Can i still file for Bankrupt after 3 years? am aware that it costs 600 gbp.
Thnaks to you guys who redirected me to get some info to the national debt helpline, i have become aware that there is a form calleld M2, which enables (with a bit of luck though) the individual to pay 50 pound pcm. Will enquiry today.

getmore4less

I dont know if you remember but about 4 years ago in uk you could properties at BMV (below market value) from the developer. The reason for the developer to get you such a huge discount of over 15% was because some guys were purchasing more than than flats

I bet they told you the rents were high as well.

Did you go to a workshop/seminar?

Minimal research on values and rentals would have shown it was clearly a scam.

One of the biggest players in this market is getting sued, was it them?

If you still owe the money and can't pay it back then you can look at bankrupcy.

WellKnownSid

tigeon wrote: »

i called them "two guys" as they were not operating under any association or under any company name, that am aware of. They were quite professional often changing office, and dealt with many investors.

Umm... were these the same two guys that taught you all about "BMV" and "using equity to finance down deposit"?

tigeon wrote: »

I dont know if you remember but about 4 years ago in uk you could properties at BMV (below market value) from the developer. The reason for the developer to get you such a huge discount of over 15% was because some guys were purchasing more than than flats.

Don't worry. Today you can buy property at NNMV - Nowhere Near Market Value!

tigeon wrote: »

Then they would use one of the suveyors they know, and value the flat at higher price: The result was that, they would get actually paid by the mortgage company for buying a flat. They would re-sell it to investors offering massive discount, by putting down only 5,000 pounds.
It sounded good, that just by paying 5,000 you get a flat worth 320,000.
Trying to resell the flat at Mv or even BMV was impossible. Its like having negative equity, and the rent from the tenants, would not cover the mortgage. Mortgage 1,390pcm / Tenants 950pcm.

Point of order... it IS having negative equity.

Did you not realise that the second you pay "BMV" for something, then the "MV" becomes the "BMV"? Or did the two guys not tell you this?

If a property is valued at 320,000 - and you pay, say, 20% less and get it for 256,000 - then the "MV" is now 256,000. If the market then falls by 25% because it's just one of a gazillion flats, then the "MV" could now be 192,000.

tigeon wrote: »

For abvious reasons i cannot mention teh name of teh two guys, but i did mention them to the lenders, but they just would not listen. I mean i was not talking really to the lender, but to a representative, who gets the monthly salary, to say no, no no ... "Mr x its a must your full repayment... mr x you must ensure that full payment is made and so on...

Did the two guys sign the mortgage paperwork, or was it you? If it was you, then you're the one that needs to make the payments.

tigeon wrote: »

Can i still file for Bankrupt after 3 years? am aware that it costs 600 gbp.
Thnaks to you guys who redirected me to get some info to the national debt helpline, i have become aware that there is a form calleld M2, which enables (with a bit of luck though) the individual to pay 50 pound pcm. Will enquiry today.

Once you've filed for bankruptcy, you are aware that you may not get a mortgage again with a prime lender?

silvercar

So who owns the flats now?

You can download the deeds from the land registry website and see the name of the owner and the price they paid.