Help needed regarding reposession

user1977

housebuyer143 said:

silvercar said:

It seems unnaturally quick for a bank to start repossession proceedings after only 2 months of arrears? I very much doubt a court would accept this. Do you have a mortgage statement (maybe access your mortgage account online) to check that all payments have been made.

Even though your tenant hasn't paid you 2 months rent, there is nothing to stop you making the mortgage payments from your own funds if you have them. Evicting the tenant and selling the property empty would get a far better price than trying to sell with a tenant in the property without a proper written agreement and not paying rent.

I would want a rent statement from the letting agent, a mortgage statement from your lender. Make any mortgage payment you can and talk to the mortgage lender. Find out why they are thinking of repossessing while you are only 2 months behind. Something here is odd.

Sounds like not only are they not paying the mortgage but they are also in breach of the mortgage deed by renting it out on a residential mortgage... 

And presumably didn't even try seeking consent to let?

sheramber

So the estate agent hasn't been paid if his payment was to come out of the rent received.

Maybe they waiting for payment to do any more work.

jj_43

You can sell the property in Auction without all those certificates etc your selling the problem on to others. Do you know what the shortfall will be between your mortgage and the expected sales prices, and how will you cover that? 

panda4556

jj_43 said:

You can sell the property in Auction without all those certificates etc your selling the problem on to others. Do you know what the shortfall will be between your mortgage and the expected sales prices, and how will you cover that? 

The property is valued at 300k the mortgage is £86k I've been making over payments all my life I've never been on holiday I have no jewelry I've put my every penny into paying off the house I cane into unfortunate circumstances & had to go abroad I've worked very very hard for my house

panda4556

sheramber said:

So the estate agent hasn't been paid if his payment was to come out of the rent received.

Maybe they waiting for payment to do any more work.

To be fair the estate agent has been very good he responds to my text on his days off 

panda4556

user1977 said:

housebuyer143 said:

silvercar said:

It seems unnaturally quick for a bank to start repossession proceedings after only 2 months of arrears? I very much doubt a court would accept this. Do you have a mortgage statement (maybe access your mortgage account online) to check that all payments have been made.

Even though your tenant hasn't paid you 2 months rent, there is nothing to stop you making the mortgage payments from your own funds if you have them. Evicting the tenant and selling the property empty would get a far better price than trying to sell with a tenant in the property without a proper written agreement and not paying rent.

I would want a rent statement from the letting agent, a mortgage statement from your lender. Make any mortgage payment you can and talk to the mortgage lender. Find out why they are thinking of repossessing while you are only 2 months behind. Something here is odd.

Sounds like not only are they not paying the mortgage but they are also in breach of the mortgage deed by renting it out on a residential mortgage... 

And presumably didn't even try seeking consent to let?

No I didn't I was more concerned about my grandfather the tenant failed the risk test credit score I took no deposit as I felt sorry for him & wanted to give him a chance I took reduced rent I thought atleast the property won't be empty my intention was to seek btl consent whilst I was abroad but I never got round to doing it I've only been abroad since march 

housebuyer143

panda4556 said:

user1977 said:

housebuyer143 said:

silvercar said:

It seems unnaturally quick for a bank to start repossession proceedings after only 2 months of arrears? I very much doubt a court would accept this. Do you have a mortgage statement (maybe access your mortgage account online) to check that all payments have been made.

Even though your tenant hasn't paid you 2 months rent, there is nothing to stop you making the mortgage payments from your own funds if you have them. Evicting the tenant and selling the property empty would get a far better price than trying to sell with a tenant in the property without a proper written agreement and not paying rent.

I would want a rent statement from the letting agent, a mortgage statement from your lender. Make any mortgage payment you can and talk to the mortgage lender. Find out why they are thinking of repossessing while you are only 2 months behind. Something here is odd.

Sounds like not only are they not paying the mortgage but they are also in breach of the mortgage deed by renting it out on a residential mortgage... 

And presumably didn't even try seeking consent to let?

No I didn't I was more concerned about my grandfather the tenant failed the risk test credit score I took no deposit as I felt sorry for him & wanted to give him a chance I took reduced rent I thought atleast the property won't be empty my intention was to seek btl consent whilst I was abroad but I never got round to doing it I've only been abroad since march 

You took no deposit, low rent and he failed the references.. did the agent advise you not to take them? As you really needed the money to make ends meet did you not think it wise to go for a good tenant who had means to pay? 

It's been 8 months. It would not have taken any time to inform your lender you were letting the property. I get initially you had urgent buisness but at some point you must have known that you should tell your lender. 

I would honestly just take it to auction and be done with it, that's probably all the lender will do. If you get repossessed you can kiss buying another property goodbye for a good many years.

user1977

housebuyer143 said:

panda4556 said:

user1977 said:

housebuyer143 said:

silvercar said:

It seems unnaturally quick for a bank to start repossession proceedings after only 2 months of arrears? I very much doubt a court would accept this. Do you have a mortgage statement (maybe access your mortgage account online) to check that all payments have been made.

Even though your tenant hasn't paid you 2 months rent, there is nothing to stop you making the mortgage payments from your own funds if you have them. Evicting the tenant and selling the property empty would get a far better price than trying to sell with a tenant in the property without a proper written agreement and not paying rent.

I would want a rent statement from the letting agent, a mortgage statement from your lender. Make any mortgage payment you can and talk to the mortgage lender. Find out why they are thinking of repossessing while you are only 2 months behind. Something here is odd.

Sounds like not only are they not paying the mortgage but they are also in breach of the mortgage deed by renting it out on a residential mortgage... 

And presumably didn't even try seeking consent to let?

No I didn't I was more concerned about my grandfather the tenant failed the risk test credit score I took no deposit as I felt sorry for him & wanted to give him a chance I took reduced rent I thought atleast the property won't be empty my intention was to seek btl consent whilst I was abroad but I never got round to doing it I've only been abroad since march 

I would honestly just take it to auction and be done with it, that's probably all the lender will do.

I would think it more likely that the lender would first evict the tenant, and sell via a conventional agent. Then they will get a better price than anybody would putting it into auction with no tenancy agreement and a tenant who's in arrears.

housebuyer143

user1977 said:

housebuyer143 said:

panda4556 said:

user1977 said:

housebuyer143 said:

silvercar said:

It seems unnaturally quick for a bank to start repossession proceedings after only 2 months of arrears? I very much doubt a court would accept this. Do you have a mortgage statement (maybe access your mortgage account online) to check that all payments have been made.

Even though your tenant hasn't paid you 2 months rent, there is nothing to stop you making the mortgage payments from your own funds if you have them. Evicting the tenant and selling the property empty would get a far better price than trying to sell with a tenant in the property without a proper written agreement and not paying rent.

I would want a rent statement from the letting agent, a mortgage statement from your lender. Make any mortgage payment you can and talk to the mortgage lender. Find out why they are thinking of repossessing while you are only 2 months behind. Something here is odd.

Sounds like not only are they not paying the mortgage but they are also in breach of the mortgage deed by renting it out on a residential mortgage... 

And presumably didn't even try seeking consent to let?

No I didn't I was more concerned about my grandfather the tenant failed the risk test credit score I took no deposit as I felt sorry for him & wanted to give him a chance I took reduced rent I thought atleast the property won't be empty my intention was to seek btl consent whilst I was abroad but I never got round to doing it I've only been abroad since march 

I would honestly just take it to auction and be done with it, that's probably all the lender will do.

I would think it more likely that the lender would first evict the tenant, and sell via a conventional agent. Then they will get a better price than anybody would putting it into auction with no tenancy agreement and a tenant who's in arrears.

Maybe, but surely evicting a tenant with no agreement etc will be just as time consuming and expensive? Could go either way I suppose.

Although, do the lenders have more rights to evict tenants on a residential mortgage? As in they don't need to, they just reposess it and change the locks?

user1977

housebuyer143 said:

user1977 said:

housebuyer143 said:

panda4556 said:

user1977 said:

housebuyer143 said:

silvercar said:

It seems unnaturally quick for a bank to start repossession proceedings after only 2 months of arrears? I very much doubt a court would accept this. Do you have a mortgage statement (maybe access your mortgage account online) to check that all payments have been made.

Even though your tenant hasn't paid you 2 months rent, there is nothing to stop you making the mortgage payments from your own funds if you have them. Evicting the tenant and selling the property empty would get a far better price than trying to sell with a tenant in the property without a proper written agreement and not paying rent.

I would want a rent statement from the letting agent, a mortgage statement from your lender. Make any mortgage payment you can and talk to the mortgage lender. Find out why they are thinking of repossessing while you are only 2 months behind. Something here is odd.

Sounds like not only are they not paying the mortgage but they are also in breach of the mortgage deed by renting it out on a residential mortgage... 

And presumably didn't even try seeking consent to let?

No I didn't I was more concerned about my grandfather the tenant failed the risk test credit score I took no deposit as I felt sorry for him & wanted to give him a chance I took reduced rent I thought atleast the property won't be empty my intention was to seek btl consent whilst I was abroad but I never got round to doing it I've only been abroad since march 

I would honestly just take it to auction and be done with it, that's probably all the lender will do.

I would think it more likely that the lender would first evict the tenant, and sell via a conventional agent. Then they will get a better price than anybody would putting it into auction with no tenancy agreement and a tenant who's in arrears.

Although, do the lenders have more rights to evict tenants on a residential mortgage? As in they don't need to, they just reposess it and change the locks?

No, anybody wanting to evict a tenant needs to go via court, and even if the property is empty a reposessing lender needs to go to court to evict if the owner hasn't voluntarily given up possession.

We don't have any of the numbers though to figure out whether there's likely to be a shortfall or how the legal etc costs would compare with the value of the property.