Help needed regarding reposession

panda4556

Guys thanks so much for your valuable time & advice so my best option would be to tell the solicitors seen as I can't be at the hearing that I'm  giving voluntary reposession as I can't afford to pay the loan back 

panda4556

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.

Property value £300k mortgage £86k 

panda4556

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 

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.

Yes your absolutely right it was a very stupid decision I was in a rush to go & see my grandfather I thought I would give this poor man a chance the classic narcissist & empath scenario he told me he needed a property to rent & promised he would pay I'm very very lucky the estate agents got involved in June when he missed a rent payment 

housebuyer143

panda4556 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 

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.

Yes your absolutely right it was a very stupid decision I was in a rush to go & see my grandfather I thought I would give this poor man a chance the classic narcissist & empath scenario he told me he needed a property to rent & promised he would pay I'm very very lucky the estate agents got involved in June when he missed a rent payment 

Unfortunately good deeds tend to be punished in this life

panda4556

housebuyer143 said:

panda4556 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 

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.

Yes your absolutely right it was a very stupid decision I was in a rush to go & see my grandfather I thought I would give this poor man a chance the classic narcissist & empath scenario he told me he needed a property to rent & promised he would pay I'm very very lucky the estate agents got involved in June when he missed a rent payment 

Unfortunately good deeds tend to be punished in this life

Yes your right hopefully they won't be punished but rewarded in the after life

london21

If you are renting, you will want your tenant to pay each and every month but have to have some funds in case they fall behind that one does not fall behind with the mortgage.

If you were to sell with auction with tenants in, might not get the best return. 

You mentioned tenant behind 2 months' rent, but you had fallen behind payments even before the property was rented.

Repossession might not get the best return also as the bank will focus on getting their funds and paying costs then you get the remaining. 

All the best. 

panda4556

london21 said:

If you are renting, you will want your tenant to pay each and every month but have to have some funds in case they fall behind that one does not fall behind with the mortgage.

If you were to sell with auction with tenants in, might not get the best return. 

You mentioned tenant behind 2 months' rent, but you had fallen behind payments even before the property was rented.

Repossession might not get the best return also as the bank will focus on getting their funds and paying costs then you get the remaining. 

All the best. 

Don't the bank have a legal duty to sell for the best price?

theartfullodger

panda4556 said:

london21 said:

If you are renting, you will want your tenant to pay each and every month but have to have some funds in case they fall behind that one does not fall behind with the mortgage.

If you were to sell with auction with tenants in, might not get the best return. 

You mentioned tenant behind 2 months' rent, but you had fallen behind payments even before the property was rented.

Repossession might not get the best return also as the bank will focus on getting their funds and paying costs then you get the remaining. 

All the best. 

Don't the bank have a legal duty to sell for the best price?

To be able to demonstrate that they took actions to get best result.  (Not always just price .  might be timing also, especially in current market).

steampowered

Sorry Op, but you are not being truthful or are at least hiding pertinent information. 

There's absolutely no way that a bank would start repossession proceedings after only 2 months of arrears on the mortgage.

There's also no way that the hearing would be coming around so quickly. The courts have a big backlog and it takes months to get a hearing.

If the tenant hasn't been paying the rent for 2 months, you must have been failing to pay the mortgage long before the tenant stopped paying the rent.

panda4556

steampowered said:

Sorry Op, but you are not being truthful or are at least hiding pertinent information. 

There's absolutely no way that a bank would start repossession proceedings after only 2 months of arrears on the mortgage.

There's also no way that the hearing would be coming around so quickly. The courts have a big backlog and it takes months to get a hearing.

If the tenant hasn't been paying the rent for 2 months, you must have been failing to pay the mortgage long before the tenant stopped paying the rent.

 I am being very truthful I have no reason to lie I'm about to make a big loss with all my life time work. The solicitors said the threshold for court is 3 missed mortgage payments, 2 non payment of rent & 1 payment I missed, the reason for rental was because I had to go abroad. The bank said on the 22 October the letter dated we are issuing proceedings etc, then a letter from the solicitor saying the same a few days later a court date 22nd November with court letters 1 staring hearing & the other forms to fill expenditure etc. The hearing was given by the court in 4 weeks