Voluntary Repossession - complicated

vickyh_2

Hello
I'm not sure if this is the right place to ask my question, but please feel free to direct me somewhere else if you think it's more appropriate.
A few years back I ill-advisedly bought two holiday homes on a poorly run site. When the site owners got into difficulties they defaulted on guaranteed rents to the owners and subsequently I was unable to pay my mortgages. The lenders then asked thier borrowers that were struggling to agree to voluntary repossessions which many agreed to. The lenders stated (informally) that they couldn't afford to lose money on these properties, which are now worth less than 50% of the original value, but that they would not pursue any borrowers into bankrupcy. The lenders rent out the properties that they've 'taken in' and the rent goes against the mortgage as income. I never receive statements of income, but recently have been sent copies of every item of expenditure asking if I would like to pay the bill myself and if they don't hear from me within a certain time frame they will pay the bills out of my mortgage account and interest will be charged on the amount. My question is, well, what's going on? How do I account for this? Do I just ignore the two properties for accounting purposes or do I try to include them in my annual accounting? I have had a policy of keeping my head well below the parapet up till now, but I am now getting very frequent corespondence from them. On top of that I have recently finished treatment for throat cancer and can't really be bothered with it all. Any advice would be greatly appreciated.
Many thanks
Vickyh

maninthestreet

So what is stated in the WRITTEN terms and conditions of this 'voluntary repossession' agreement about charges such as these?

silvercar

Its not clear if you have agreed to voluntary repossession or not.

If the homes have been repossessed then the lender can and will manage them as they see fit, keeping records and when they eventually decide to sell, you get a bill for the shortfall or a cheque for the remains of the proceeds.

If you haven't voluntary repossessed then the lender can decide to pay some bills if they feel their security is in jeopardy by not paying, as your mortgage will have terms requiring you to protect the asset. In this case it could be that the lender asks you to pay and if you can't or won't can add the bill to the mortgage and settle the bill on your behalf.