Had my flat repossessed today

Crown

Hi all, had a terrible day today.

Went to court over £3000 arrears on the mortgage of my flat and the lender (BM) wouldnt except my offer of monthly payments and a little bit on top ( a little bit meaning very little) and have been told that it an order is in place of the 27th Feb.

The thing is there is a tenant in the property as I do not live there and I now have the job of telling them that they are going to be made homeless.

I have been contacted by someone who is interested in buying the property for way under market value who can complete quickly. this would save the tenant having to move but will mean that I will loose about £15,000 in the sale price what I was hoping would clear the rest of my debts.


If I do not sell the property before the 27th would they be able to sell it at below the market value? I am worried if I do not except the offer I may not only loose the flat, make someone homeless but also be responsible for the shortfall.

Anyone been in this situation? I feel terrible about the whole thing and dont knowq where to turn next. Depression is setting in and thats the last thing I need

silvercar

If you are repossessed, the lender will look for a quick sale to recoup their losses. They have a duty to obtain the best price, but this is the best price for a quick sale rather than holding out for full market price. You will also have their repossession charges & legal work etc added to your debts.

The advantage of selling yourself is that you won't have a repossession on your credit record. It may be that you can delay things for a bit, if you can show the judge that you have a sale in place.

If you want to get vome views from the people that do these forced sales have a look at https://www.singingpig.co.uk you want the board titled BMV - below market value.

mountainofdebt

Sorry you've had such a !!!!!! day.

I guess the bottom line is will the price that the buyer is offering to pay clear the mortgage on the flat?

If the answer is yes then I think I would think long and hard about accepting the offer - you can then draw a line under the saga and concentrate on clearing the other debts by other means.

I think the mortgage lender are duty bound to get the best price for the flat should they repossess the flat .....although I (personally) would be worried that they would sell to the first person who showed an interest regardless of the price they offered and just to add to your woes I think you would be liable for any shortfall.

Try and sleep on it before making a decision....it might also be worth seeing if the CAB can confirm the position should you decide to sell/ not to sell.

Crown

thanks for the replies. I think I will sleep on it. Im knackered and just not in the mood for anything right now.

hopefully it will seem a little clearer in the morning.

roswell

I assum that you dont have a BTL mortgage ? Can I ask why you are renting it out and how you got to this situation?

Toto

I'm really sorry you have had such a crap day, I really know how it feels to try your hardest to sort out your mess but the other party just won't meet you half way. You tried, that's all you can do. If it were me I would sell the flat myself, if nothing else just to stay in control. And, a reposession on your file won't help at all if you try to get another mortgage somewhere down the line.

I think the mortgage company are likely to care only about their money out of the sale, so the chances are you won't see a penny and you could even end up owing the shortfall.

It can only get better from here, you will be free of the mortgage debt stress from now on. After going through this the rest will seem easier I'm sure.

ManAtHome

Perhaps you should change the title to "had my BTL repossesed today"... And you have BTL+debts and the rent didn't cover the mortgage? I'm sure there's more to it, but my sympathy at the moment is with the tenant.

lynzpower

hang on, no one has said he is BTL. Quite a few people round here rent thier houses out as they can no longer afford to live in them. I suggest all you HPCs go gloat somewhere else. :mad:

Are you able to market your place if you have a repo order on IF so, I cant recommend house network enough. they are chep under 500 quid, and take great pics.

You can sell your place as an investment property with tenant

I would take some legal advice on this pronto

whatatwit

When we bought our house, it was the subject of a re-possession order.

It was shown to us by the owner, who at the time was negotiating with the bank to stop it going to court.

If I recall correctly, we had to complete before the re-possession date, which with how long these things take was touch and go. (it went to court and had a date set during negotiations)

As Lynz has said, take legal advice ASAP, there may not be enough time for your buyer to complete, unless he has the cash in the bank.

sanfrancisco

Tell the tenents NOW! This is their life, they have to find somewhere else to live, and their whole lives are totally disrupted.

This should be a lesson to all tennants to check that Landlords have a BTL mortgage, as it means that this cannot happen (the house can be repossed, but it will take much longer).

woohoo_postingid

sanfrancisco wrote:

Tell the tenents NOW! This is their life, they have to find somewhere else to live, and their whole lives are totally disrupted.

Agreed, and my sympathy is with the tenant but you also have to look at your life. Given enough notice, a tenant can find somewhere else to live and, as nasty as it sounds, it is not your problem whether they do or not.

What I'm saying is, don't beat yourself up about the tenant, that is just another worry that you don't need. Focus on you and your issues.