Repossession - mortgage lender valuation

mightymouse

It might be but op joined in October 2006 same time as property repossessed...........

MarkyMarkD

It makes me very sad that so many people seem to just wallow in their mortgage arrears and do nothing to seek to address it.

At least if someone is living in the house, you can sort of understand why they don't want to sell up as they'd have to find somewhere else to live and renting might cost even more than the mortgage.

But if it's a "buy to let", there's absolutely no reason not to sell up! Presumably the property was vacant and that's why the mortgage went into arrears? In which case, WHY DID THE OP NOT SIMPLY SELL UP!

CYBERCIDERSAVER

Surely to have a buy to let must mean you have

A. some money behind you to enable you to get a BTL mortgage in the first place

B. Some kind of financial understanding to embark on becoming a landlord.

What are the repercussions for them? How long will their credit rating be affected. Or is it an easy way out? (like IVA's where you don't pay what you
owe??)

beingjdc

CYBERCIDERSAVER wrote: »

Surely to have a buy to let must mean you have

A. some money behind you to enable you to get a BTL mortgage in the first place

B. Some kind of financial understanding to embark on becoming a landlord.

Not these days! You just need a shirt and tie and a DVD of the latest series of Property Ladder, and the banks will chuck money at you.

Nick.._5

Your poor tenants

Merton

What looks like being the biggest house price crash in history is just getting underway. Yes, prices fall as well as rise! Obviously prices have been falling in that area and not rising. As those who thought they could make money for nothing out of being buy to let landlords have done so much to push prices out of reach of many people it's really hard to have any sympathy at all, or to understand why you want some form of redress. Your story is happening all over the country as wannabe landlords discover how hard it is to make any money at all from property in a stable or falling market. You took a massive risk and it didn't pay off. Now leave property for those who want a home.

epz_2

if you borrowed money from a bank to put on a horse race and it lost would expect the bank to forget about the debt.

the house might have been overpriced and you were stupid enough to pay for it or as new builds get worn out and because the area has been filled by btl tennants wrecking the place it might not be worth as much now.

you took on the debt and wouldnt be giving the bank a share of any profits, dont expect relief on the debt cause your gamble didnt pay off.

MarkyMarkD

beingjdc wrote: »

Not these days! You just need a shirt and tie and a DVD of the latest series of Property Ladder, and the banks will chuck money at you.

BTL mortgages require at least a 15% deposit, so it's not true that you can go into BTL without any money behind you, UNLESS the new build property sellers artificially inflate the price of the property and do some dubious deposit gifting.

MarkyMarkD

Merton wrote: »

What looks like being the biggest house price crash in history is just getting underway. Yes, prices fall as well as rise! Obviously prices have been falling in that area and not rising. As those who thought they could make money for nothing out of being buy to let landlords have done so much to push prices out of reach of many people it's really hard to have any sympathy at all, or to understand why you want some form of redress. Your story is happening all over the country as wannabe landlords discover how hard it is to make any money at all from property in a stable or falling market. You took a massive risk and it didn't pay off. Now leave property for those who want a home.

I don't agree that this particular situation is a sign of a house price crash.

This is a sign of individuals over-paying for new build properties because of the incentives which make it look like a good deal, coupled with over-supply of rented properties in a small area leading to reduced rental yields and hence no secondhand market for the properties.

It doesn't mean that a general price crash is likely at all.

silvercar

You say that, at the time of sale, estate agents were valuing at 265-285. We know EAs exagerate to get business etc so combining that with the stamp duty hike at 250k. no-one would seriously expect the property to get more than 250k.

Add to that the fact that this was an empty property in a forced, quick sale situation rather than one done up for sale and 225 doesn't look unreasonable.