Buy to let property reposession

[springwater]

hi all,

i have an issue!

my wife owns a property (mortgaged with mortgage express) and due to the fact we could not afford to renovate the place when my business collapsed, we fell into arrears.

m.x started repossession proceedings so I requested an emergency hearing at court and offered to pay the mortgage plus £100 per month until arrears were cleared.

this went fine for around 3 months, we then got a letter in july stating the arrangement had been broken and they were applying to court to get possession proceedings started again. I called them, and they informed me it was because a payment in june was 20p (yes 20p!) short.

since then, we have had a little girl who arrived early and we have not paid the mortgage since.

we received a letter last week saying repossession/eviction would take place on 11th dec. The arrears stand at around £1200, we were expecting my wife to get paid today and clear them in full, she hasnt been paid and isnt until wednesday, the day after the eviction!

is there anything we can do? we've just been accepted on a council grant to get the property fully renovated so we dont wish to lose it, and can clear the arrears in full next week, which is quicker than m.x were originally going to get them cleared.

I have a few questions:

1. can i apply for an extension in order to clear the arrears? if so, how do i do this?
2. if the posession takes place on the 11th, do i get a period where i can get property back if arrears cleared?
3. do i stand a chance with the court of getting an extension and paying 50% of the arrears? we can clear in full, but ti will clear us out for xmas!

any help massively appreciated!

[IanM]

Re: Buy to let property reposession

Do they have a suspended possession order?

Have they been to court to obtain an eviction order?

If so, did you receive notification they were applying for an eviction order?

Did you attend court and defend the eviction order?

hi all,

i have an issue!

my wife owns a property (mortgaged with mortgage express) and due to the fact we could not afford to renovate the place when my business collapsed, we fell into arrears.

m.x started repossession proceedings so I requested an emergency hearing at court and offered to pay the mortgage plus £100 per month until arrears were cleared.

this went fine for around 3 months, we then got a letter in july stating the arrangement had been broken and they were applying to court to get possession proceedings started again. I called them, and they informed me it was because a payment in june was 20p (yes 20p!) short.

since then, we have had a little girl who arrived early and we have not paid the mortgage since.

we received a letter last week saying repossession/eviction would take place on 11th dec. The arrears stand at around £1200, we were expecting my wife to get paid today and clear them in full, she hasnt been paid and isnt until wednesday, the day after the eviction!

is there anything we can do? we've just been accepted on a council grant to get the property fully renovated so we dont wish to lose it, and can clear the arrears in full next week, which is quicker than m.x were originally going to get them cleared.

I have a few questions:

1. can i apply for an extension in order to clear the arrears? if so, how do i do this?
2. if the posession takes place on the 11th, do i get a period where i can get property back if arrears cleared?
3. do i stand a chance with the court of getting an extension and paying 50% of the arrears? we can clear in full, but ti will clear us out for xmas!

any help massively appreciated!

[Nikolai]

Re: Buy to let property reposession

You should apply immediately to the court on form N244 (available at the court office or online) to suspend the warrant of eviction, if that is indeed what is to happen next week. You should have received documents from the court saying something like "the eviction will take place on (date)..."
That is a bailiff's warrant of eviction, which is different to an order for possession, and means you're running short of time to act. If your property is repossessed it's game over, you can't get it back, so get in first with an application to suspend. You must tell the court on the N244 how you propose to clear the arrears and be prepared to attend the hearing to explain to the district judge. The DJ is likely to be sympathetic, especially as it's near Xmas.
Be aware that Mortgage Express have a reputation for repossessing property for the slightest excuse, so if you do succeed in your application to suspend be sure to stick to any terms imposed by the court.

[springwater]

Re: Buy to let property reposession

You should apply immediately to the court on form N244 (available at the court office or online) to suspend the warrant of eviction, if that is indeed what is to happen next week. You should have received documents from the court saying something like "the eviction will take place on (date)..."
That is a bailiff's warrant of eviction, which is different to an order for possession, and means you're running short of time to act. If your property is repossessed it's game over, you can't get it back, so get in first with an application to suspend. You must tell the court on the N244 how you propose to clear the arrears and be prepared to attend the hearing to explain to the district judge. The DJ is likely to be sympathetic, especially as it's near Xmas.
Be aware that Mortgage Express have a reputation for repossessing property for the slightest excuse, so if you do succeed in your application to suspend be sure to stick to any terms imposed by the court.

Thanks for your response!

Few questions.

I have recieved a letter saying eviction will take place on the 11th, im guessing once this is done the house is already repo'd, is that right? Or do they evict and then go through a process to repo?
I'll download the n244 form tomorrow and take it to court monday. Is there enough time given the fact that eviction is due tuesday?
Due to short time frame, will there definitely be a hearing? If so, can i do this by phone?
I think i will offer to pay 50% of the arrears next week rather than 100% which would leave us with nothing, do you think they will accept this given the fact we failed on last payment plan which he suspended posession for? Or should we offer to clear in full? (i know you cant say either way for def but any advice gratefully recieved!)

Thanks again!

[wales01man]

Re: Buy to let property reposession

From experience after eviction thats it its the last in the line of processes its probably final but if so good luck fot the future.

[enquirer]

Re: Buy to let property reposession

I think i will offer to pay 50% of the arrears next week rather than 100% which would leave us with nothing.

Although paying in full will leave you with nothing, offering 50% makes it look as if you are playing games. If you can, it's better to offer 100%. That way, you pull the carpet from under their feet and leave them with little to complain about. That will look very bad in court if they still move to reposess. Offer to pay the money into court on the spot.

[springwater]

Re: Buy to let property reposession

Hi all,

an update on this!

I filed an n244 and went to court on the 11th December to suspend the eviction/posession warrant. Mortgage Express argued that due to the property being uninhabitable, their security was at risk, I explained I had been accepted onto a goverment scheme where they renovate my property for me and put tenants in it, and I pay renovation cost back out of rent over next 5 years, after a long debate, the judge ordered that I was to pay the mortgage payment, plus £200 per month off the arrears, as well as have the property renovated, and we would revisit in 3 months (march 12th).

My payment in January was late due to the nature of my job and the weather, so MX went for a posession order again! I had planned to file another n244, but instead I recieved a letter in the post last thursday saying a hearing had been set for today at 10am, I called MX to ask what this was for (i hadn't filed another n244, although had planned to do so), they said they thought it was a mistake. I called the court this morning who confirmed hearing was to take place at the judges request, I then called MX, who said they wouldnt be sending anyone to the hearing.

I attended, they did not, and, due to the fact that the property is now fully renovated, and I have paid the mortgage plus £200 in dec and jan, that the hearing would be fairly straightforward, I was wrong.

The judge asked my why MX were not there, I said I didnt know, he explained they had asked for another possession to take place, and he had set this hearing prior to one being granted. He seemed to frown massively on the fact I have paid late (i wasn't expecting him to be happy, but I did think the fact I had paid would superseed the timing).The judge said that since M.X had failed to show, he would have to set another hearing! I said I found that difficult to accept, I had to take time of work (and carry the cost of the hearing) and had managed to get myself there, surely if they cant do the same that is there issue and the ruling should go in my favour (I was only after an 'as you were', carry on paying and you're ok). He disagreed, and said since M.X were not there to back up or argue against anything I was saying that he would have to set another hearing.

I find this massively unfair, I am paying these court costs (or they're being added to mortgage) and I have to take more time off work, I'm sure if I had failed to attend today then the judge would have ruled in mx's favour and I would have lost the property!

what should/can I do here? It seems rather unfair to me!

[Guest]

Re: Buy to let property reposession

I have no legal experience or qualifications.
However, I am also experiencing the cost of possession proceedings.
I have been thinking your question over.
If it was me, I would write to mx, explain there'll be another hearing, and ask if they'll attend.
I would explain your desire to earn money to pay mortgage rather than waste it on proceedings.
Then communicate with the court.

[enquirer]

Re: Buy to let property reposession

I am currently assisting in an eviction case.

At the latest hearing, the claimant (a local authority ALMO), offered no evidence, even though at the previous hearing, a judge had given them list of the documents he expected to see (all listed on the original application, but never produced). The claim should have been struck out there and then, but it wasn't.

The whole thing has descended into farce, with it becoming abundantly clear that the housing association concerned (large, wealthy, and very influential locally), is being allowed a degree of latitude that would never be accorded an ordinary person.

No, it isn't right or fair.

[Nikolai]

Re: Buy to let property reposession

I hate to say it but I'm not surprised MX went for another order. You can't get away with paying late or less than you should with these people. Since they were nationalised they have been winding down their mortgage book and some of their methods are, shall we say, questionable. Do a search against them and see what I mean. The fact that the judge ordered another hearing is entirely a matter for the court and you can't influence it at all. I agree it's tough and as someone who has lost a property to a lender myself I have nothing but empathy with you. You have to fight this to the end but never underestimate MX as an opponent and don't ever give them the slightest excuse to refer you back to court.

[wales01man]

Re: Buy to let property reposession

Can i ask if the local authority has paid for renovations to the property does the money have to be paid back if the house changes ownership?
IMHO as someone who has been repossed i think in some cases its time to sit down and weigh up the situation and decide whether the fight is worth it the next round might go with you then something else prevents a payment being made it starts again you may get stressed but guaranteed the mortgage people are not,i know this is blunt but sometimes admitting defeat is the best

[PlanB]

Re: Buy to let property reposession

Can you clarify how long it would take to clear the arrears on your mortgage at the rate of £200 per month? If you have a suspended possession order you may be able to apply to the court to have that order cancelled once those arrears have been paid. This means the Mortgage Express would be back to square one if you ever fell into arrears again and would have to issue a whole new sumons for possession and they won't be able to go straight to the eviction stage.

If you are struggling to keep up with those payments in the meantime then you should be able to apply to the court to vary the order to something more affordable which may also prevent these repeat eviction warrants which must be very stressful. The CAB should be able to help you do this but here's some basic info:

http://www.adviceguide.org.uk/wales/...er_the_hearing

The only complication I see is that you are now renting out the property which effectively changes it from a residential mortgage into a Buy-to-Let product where different rules and standards apply. Judges loathe to make people homeless but care less about rental investments. This may matter because if the court thinks you have got somewhere else to live (have you?) when the tenants move in (have they?) then you'll lose the sympathy vote.

If this loan began as a residential mortgage there would have been a condition in the Ts & Cs preventing you from renting out the property without the lender's permission and they would have the right to increase your loan interest rate to cover the perceived risk. If you haven't got their permission in writing to let it out they could try to argue that you've breached your mortgage conditions and use that as a negative in court.

Finally it's normal for a lender to take a Buy-to-Let investment into receivership without the need for a possession order and then they collect the rent direct from the tenant to cover the mortgage payments and charge fees for "management" on top unless they decide to sell it at auction or on the open market. You would lose all control if this happened.

Can you let me have a bit more information so I can see if I can add anything more useful. On face value the arrangement you've got with the Local Authority seems to be a win-win situation all round but you may need to convince the Mortgage Express of the logic asap so that they withdraw the next hearing.

[springwater]

Re: Buy to let property reposession

Can i ask if the local authority has paid for renovations to the property does the money have to be paid back if the house changes ownership?
IMHO as someone who has been repossed i think in some cases its time to sit down and weigh up the situation and decide whether the fight is worth it the next round might go with you then something else prevents a payment being made it starts again you may get stressed but guaranteed the mortgage people are not,i know this is blunt but sometimes admitting defeat is the best

hi, thanks for replying!

I'm not sure on the repayment if house changes hands to be honest, whats you thinking here?

i'm almost certain its worth keeping, we've had it 5 years and its now, for the first time, a viable entity. I'd liek to keep it for my daughter (she's 6 months old). Once its rented, it washes its own face and I have guaranteed tenants for next 5 years.

[springwater]

Re: Buy to let property reposession

Can you clarify how long it would take to clear the arrears on your mortgage at the rate of £200 per month? If you have a suspended possession order you may be able to apply to the court to have that order cancelled once those arrears have been paid. This means the Mortgage Express would be back to square one if you ever fell into arrears again and would have to issue a whole new sumons for possession and they won't be able to go straight to the eviction stage.

If you are struggling to keep up with those payments in the meantime then you should be able to apply to the court to vary the order to something more affordable which may also prevent these repeat eviction warrants which must be very stressful. The CAB should be able to help you do this but here's some basic info:

http://www.adviceguide.org.uk/wales/...er_the_hearing

The only complication I see is that you are now renting out the property which effectively changes it from a residential mortgage into a Buy-to-Let product where different rules and standards apply. Judges loathe to make people homeless but care less about rental investments. This may matter because if the court thinks you have got somewhere else to live (have you?) when the tenants move in (have they?) then you'll lose the sympathy vote.

If this loan began as a residential mortgage there would have been a condition in the Ts & Cs preventing you from renting out the property without the lender's permission and they would have the right to increase your loan interest rate to cover the perceived risk. If you haven't got their permission in writing to let it out they could try to argue that you've breached your mortgage conditions and use that as a negative in court.

Finally it's normal for a lender to take a Buy-to-Let investment into receivership without the need for a possession order and then they collect the rent direct from the tenant to cover the mortgage payments and charge fees for "management" on top unless they decide to sell it at auction or on the open market. You would lose all control if this happened.

Can you let me have a bit more information so I can see if I can add anything more useful. On face value the arrangement you've got with the Local Authority seems to be a win-win situation all round but you may need to convince the Mortgage Express of the logic asap so that they withdraw the next hearing.

Hi!

the arrears, at £200 a moth, will be cleared in 6 months.

this house was a btl mortgage from the start, and still remains so.

I've also been told that m.x will not, under any circumstance (unless arrears are cleared), withdraw the hearing.

[PlanB]

Re: Buy to let property reposession

Okay. All looking good and I'll be back tomorrow with some positive suggestions on how you can progress this

I've had two complaints against Mortgage Express upheld by the FOS and have received compensation in both cases.

One important question is whether your mortgage was originally taken out with Mortgage Express or did you take it out with another lender such as GMAC who sold it on? This could be vital to your case :wink: Are you currently on Mortgage Express' SVR or PVR ?