Landlord defaulting on mortgage

Cheeky_Monkey

It seems to me that you are completely over-reacting :eek:

One late payment will not result in the lender repossessing.

I'm curious to know where you are getting this information about your LL's personal financial affairs from?

You say that you 'suspect' that they have not declared your presence to their lender - suspecting is not the same as knowing.

Unless you know different from your seemingly unreliable source, it could simply be a matter of one missed payment due to an error by the LL's bank.

G_M

Read

* Repossession: what if a LL's mortgage lender repossesses the property?

We have recently found out that they have been defaulting on their mortgage
How?
and we also suspect that they haven't informed their lender that they rent the property out.
What makes you think this?
Despite several reminders, our tenancy agreement expired and they have never renewed it so we now know that should their home get repossessed, we are screwed!
Why? Makes no difference. You now have a perfetly normal Statutory Periodic tenancy (see link below)
We have previously offered to try and buy the house from them, but they refuse to sell it, however if the house is repossessed and we are evicted, the lenders will then simply put the property on the market for us to buy (which defeats the object of saving the roof above our head!)

Not necessarily.

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

whether there would be a chance that we could purchase the house from the lender?

Unlikely. If the lender DOES repossess, they hae a legal duty to get the best price possible, and to show they attempted to do this they'll need to advertise. Or send to auction.

sprat141

Ironic that you have the "nick-name" that you do - I cannot see how I'm over reacting when all I am doing is protecting myself as a very good and reliable tenant with excellent repayment history. All I asked for is some advice, which I have now got. I don't have to divulge anything to anyone about how and where I got my information from, what's important to ME is that MY family are protected. What I don't want is an unsuspecting letter from somewhere telling me we are going to be evicted completely out of the blue or even bailiffs knocking at the door or lenders changing the locks with all our possessions inside. I count it as a blessing that I have found out a potential serious issue ahead of the game. Rental properties are like gold dust as it is, but thank you for taking the time to reply!!

Guest101

sprat141 wrote: »

Ironic that you have the "nick-name" that you do - I cannot see how I'm over reacting when all I am doing is protecting myself as a very good and reliable tenant with excellent repayment history. All I asked for is some advice, which I have now got. I don't have to divulge anything to anyone about how and where I got my information from, what's important to ME is that MY family are protected. What I don't want is an unsuspecting letter from somewhere telling me we are going to be evicted completely out of the blue or even bailiffs knocking at the door or lenders changing the locks with all our possessions inside. I count it as a blessing that I have found out a potential serious issue ahead of the game. Rental properties are like gold dust as it is, but thank you for taking the time to reply!!

Can I ask, if you're in a position to buy, have you started looking?

The main reason i ask is if the LL hasnt told the lender and this goes abit wrong, you could be reeiving a s.21 notice anyway. Which means that you'll likely end up renting for atleast 6 months. are you in a position to start looking to buy?

laidbackgjr

sprat141 wrote: »

Ironic that you have the "nick-name" that you do - I cannot see how I'm over reacting when all I am doing is protecting myself as a very good and reliable tenant with excellent repayment history. All I asked for is some advice, which I have now got. I don't have to divulge anything to anyone about how and where I got my information from, what's important to ME is that MY family are protected. What I don't want is an unsuspecting letter from somewhere telling me we are going to be evicted completely out of the blue or even bailiffs knocking at the door or lenders changing the locks with all our possessions inside. I count it as a blessing that I have found out a potential serious issue ahead of the game. Rental properties are like gold dust as it is, but thank you for taking the time to reply!!

I can understand that - but depending upon your source and the quality of the information - you could be putting your family at more risk of being evicted if you do the wrong thing.

One missed payment is a warning sign, not a sign to start doing anything, e.g. if you alert the lender to your presence and the LL hasn't got consent to let, you are probably increasing the risk of the property being repossessed and you being evicted.

But if the information you have that it's one missed payment and it's likely to be followed by many more, then start to plan your strategy for either ensuring you purchase this property or moving out.

AdrianC

If you want to buy the place, and are in a realistic position to do so, then maybe start getting ducks in a row for a mortgage decision-in-principle, so that if/when the lender do start to rumble seriously, you can say "look, maybe we can make life very easy for you" to your landlord, and present the lender with a fait accompli, which'll be an easy route out for everybody.

Guest101

Quizzical_Squirrel wrote: »

Well I think we can all guess that your landlord is still having his mortgage mail delivered to your address and you've started opening it to read because you've assumed it's your business now.

That being said, from what I've learned on this board, I don't think you're any worse off, regarding occupancy, than any other tenant on a periodic tenancy.

If the house gets repossessed, the bank will be your landlord for a while instead. You'll get plenty of notice if you have to leave - the regular section 21. If anything, you may get even more notice than other tenants. You won't just get chucked to on the street with no notice. You are protected.

I would also be upset about losing my home but you were only 2 months away from it anyway. Just like everyone else on a periodic tenancy.

This.... If the lender / court knows theres a tenancy....

teeni

Quizzical_Squirrel wrote: »

Well I think we can all guess that your landlord is still having his mortgage mail delivered to your address and you've started opening it to read because you've assumed it's your business now.

That being said, from what I've learned on this board, I don't think you're any worse off, regarding occupancy, than any other tenant on a periodic tenancy.

If the house gets repossessed, the bank will be your landlord for a while instead. You'll get plenty of notice if you have to leave - the regular section 21. If anything, you may get even more notice than other tenants. You won't just get chucked to on the street with no notice. You are protected.

I would also be upset about losing my home but you were only 2 months away from it anyway. Just like everyone else on a periodic tenancy.

If the lender issues possession proceedings they legally have to write tot he local authority and tell them. this results in a letter being sent to the occupier from the local authority telling the tenant that there is going to be a hearing.

IN addition a letter will be sent by the solicitors for the mortgage company to the landlord and to the property again addressed to the occupier advising that possession proceedings have been issued,

finally the court will send out a copy of the claim form to the named mortgage holder and one to the occupier with the dateof the hearing.So to this point 3 letters will have been sent to the occupier.
The tenant then sends the mortgage company a copy of the tenancy agreement and requests 2 months delay under the Mortgage Repossessions (Protection of Tenants etc) Act 2010. If they refuse then the tenant applies to be joined tot he proceedings as an interested party and asks the court to grant the necessary 2 months notice.

The mortgage company will not become the landlord unless the property was let under a buy to let mortgage and the mortgage company were aware of the tenants occupation.