Repossession order - Help!

TTMCMschine

No, I'm not being repossessed, sorry to disappoint

However, a friend of mine currently rents a house & she came home yesterday to find a letter addressed to "the occupier" & it was indeed a repossession order.

She spoke to her landlord who gave her some guff about the bank messing up his payments that month etc, etc & he'd now sorted it.

What I wanted to know, & I came here since you guys are the experts on this kind of stuff, is how many mortgage payments would you need to miss before the bank started repossession proceedings?

Surely it wouldn't be after the first payment?

This guy claims to be a "property millionaire," but until he'd been & talked to the bank yesterday he didn't realise that he's been charging my friend £400 per month when the mortgage is actually £565 :eek:


Many Thanks in advance

robwend

corrrrrr there in for a rent increase lol
just to add my freind hasnt been able to pay her mortgage for 9 months and still hasnt been reposessed

TTMCMschine

Well,
she's more worried that shes in for an eviction.

SquatNow

They need to contact the court and the bank ASAP and find out if the reposession is going ahead.

Banks can AND WILL AND MUST repossess when you are 2.5 month behind in your payments.

The OPs friend needs to be VERY carefull as if the landlord is in big financial trouble and having the properties repo'd they are likely to collect the rent anyway and leg it with it and the deposit, leaving the tennants to be evicted by the bank with no cash left to find somewhere else.

Scarlett.1974

SquatNow wrote: »

They need to contact the court and the bank ASAP and find out if the reposession is going ahead.

Banks can AND WILL AND MUST repossess when you are 2.5 month behind in your payments.

The OPs friend needs to be VERY carefull as if the landlord is in big financial trouble and having the properties repo'd they are likely to collect the rent anyway and leg it with it and the deposit, leaving the tennants to be evicted by the bank with no cash left to find somewhere else.

Er... that's not true actually

OP, it's complete nonsense to say the bank will start reposession proceedings after 1 missed mortgage payment. In my experience (and I AM talking from personal experience here) nothing happens until you've missed at least 6 payments. It's not in the banks' interests to reposess, they would much rather come to an arrangements re arrears.

HTH.

Bf109

robwend wrote: »

corrrrrr there in for a rent increase lol

I think you mean "their" not "there"

Kez100

No, he doesn't mean their, or there - he means they're (they are)

LOL

SquatNow

Scarlett.1974 wrote: »

In my experience (and I AM talking from personal experience here) nothing happens until you've missed at least 6 payments. It's not in the banks' interests to reposess, they would much rather come to an arrangements re arrears.

This is the case if the bank owns the mortgage and hasn't insured the debt.

If they've insured the loan or or sold it on they will reposess immediately on reaching 2.5 payments behind. They have no choice over this as if they don't then they will invalidate their insurance or be forced to buy back a defaultig loan from whoever they sold it to.

Also should point out it's not 2.5 late payments, it's a total of 2.5 months payment... so if your repayments are £1000pcm they will begin procedings when you are £2500 behind.

TTMCMschine

Well thanks guys,
that kind of makes sense.

The landlord said that he'd been & paid just over £3500 to the bank - at £565 per month that equals around 6 months mortgage payments.

I take it that he must have had lots of prior communication, so it can't have been something that he didn't know about.

I suspect that he may be in very big trouble & I am worried that he might still be facing a repossession, I'll pass that on thanks.

Not surprising really if this property "tycoon" is charging rents that are around 30%+ less than the mortgage payments.

Thanks again, I'm seeing her later I'll advise her to ring the bank & court.

SquatNow

If the LL bought with an OO mortgage the letters about money owed may be going to the tennants address... the property with the mortgage.

TTMCMschine... have you been receiving post addresses to the LL by name?

Edit to Add: Is worth noting that if bank have sold or insured the loan then as long as they follow the loan terms they are free and clear... zero liability!

If it's insured, as long as they follow the loan terms, the insurance company will pay up. If they break the terms in any way, like any insurance company, their insurers will point, laugh, and walk off.

If it's sold on, then as long as they follow the terms the person they sold the loan to takes the loss. If they do NOT follow the terms the person they sold the loan to will make them buy it back, and then the bank has to take on the loss/risk.

An additional risk is if they bank has neither sold it NOR insured it... if they don't follow ther terms... say they hold off on repo and sale, and the property drops in value, they will get less for it. The Debtor could then go to court and claim the bank, by delaying, failed to follow procedures, and as a result, the debtor is left with a larger debt than if the bank had reposessed immediately. In those circumstances, a judge may strike out a portion or all of the outstanding debt as the bank failed to get best value for the property.

No matter what happens, the banks will want to follow the terms.

I should add... when prices are rising, the terms are irrelevant... the bank can always get more from the sale at repo than is owed, so they will be happy to turn a blind eye to missed payments. When prices are dropping every missed day is a days price drop.

WTF?_2

TTMCMschine wrote: »

Well thanks guys,
that kind of makes sense.

The landlord said that he'd been & paid just over £3500 to the bank - at £565 per month that equals around 6 months mortgage payments.

I take it that he must have had lots of prior communication, so it can't have been something that he didn't know about.

I suspect that he may be in very big trouble & I am worried that he might still be facing a repossession, I'll pass that on thanks.

Not surprising really if this property "tycoon" is charging rents that are around 30%+ less than the mortgage payments.

Thanks again, I'm seeing her later I'll advise her to ring the bank & court.

She should start looking around for other rental houses. And check the status of the next prospective landlord - if it's someone who just jumped into BTL in the last few years then there's a fairly good chance that another repossession could be on the cards. New BTL is going to suffer a bloodbath, the sums haven't made sense for years and the clueless are about to get caught out with inconvenience for their tenants.


Plus, of course, DO NOT PAY ANY ADDITIONAL RENT IN ADVANCE 'to help the landlord out'.