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Debbie Baker
Posts:109

28-09-2007 1:47 AM	Alert
Advice needed please! I have a client who owns 2 properties. She rents a flat out which she is in negative equity in through a Northern Rock mortgage and a secured loan from Endeavour. She is unable to pay the increase in mortgage payments. She has given the tenant notice on the flat and he will move out in the next 2 months. At what stage should she 'hand the keys' back to the first charge? She doesnot wish herself or the tenant to have increased pressure from the secured creditors. However, the tenant is quite willing to stay there until he's thrown out! She is also due to come out of a fixed rate on her residential property at christmas and could well be in the same situation there, however she has £40k equity. Will any lender be able to help her re-mortgage the residential property into a lower rate as she has had to give vacant possession on the flat and her credit file will be poor? Any advice would be appreciated.

Kind Regards Debbie Baker Tip Consultancy - Financial Recovery Specialists 07790 533884

Thierry Lemaire
Posts:7

12-10-2007 11:39 AM	Alert
Hi Debbie, There is possibility to save her by negociating the debts with the lender(s). I can take you through this. Best, Thierry ~~~~~~~~~~~~~~ 07903 017 126 Repossesion Angels - South East Region Manager www.repossessionAngels.com we are looking for investors all over UK

Thierry Lemaire ~~~~~~~~~~~~~~ 07903 017 126 Repossession Angels - South East Region Manager www.repossessionAngels.com we are looking for investors all over UK

Debbie Baker
Posts:109

13-10-2007 9:48 AM	Alert
Thanks Thierry, Will give you a call next week for your advice.

Kind Regards Debbie Baker Tip Consultancy - Financial Recovery Specialists 07790 533884

Johnny Debt
Posts:209

14-10-2007 1:01 AM	Alert
Thierry is right, other charges can be negotiated down. Richard from O2 properties mangaged to reduce a second charge by 60%. It doesn't work all the time, but it is always worth having a go!

Johnny Debt 07870 492521

Suzy Evans
Posts:51

15-10-2007 7:12 AM	Alert
Dont forget, if things go horribly wrong and someone in this kind of situation does get repossessed, we can always negotiate with the lenders after the repossession to try and purchase the property and then rent it back to the original owner or the original tenant. We can even help them find temporary accomodation while the sale goes through and arrange a buy back for the owner after a period of time when they can get a decent mortgage and back on the road to wealth! Again this doesnt work all the time as the competion is high after the repossession, but with a bit of determination it can work wonders.

Suzy Evans

Debbie Baker
Posts:109

16-10-2007 3:02 AM	Alert
At the moment the client has missed only 2 months mortgage payments on the flat. There is no possible way that she can afford to pay any firther funds to the lender. Where do you start with the negotiations? Is it the first charge you need to worry about or the second? This would be a great solution for the client and her tenant. At what point would you need to step in and start negotiating?

Kind Regards Debbie Baker Tip Consultancy - Financial Recovery Specialists 07790 533884

Thierry Lemaire
Posts:7

19-10-2007 7:52 AM	Alert
The challenge is to start negociating before you get any letter from the lender's solicitor about repossession: in general, no repossession ahead = no "good reason" to negociate reduction of debts. [quote]Is it the first charge you need to worry about or the second?[/quote] obviously the charge(s) where she has defaulted are the one you can negociate, for the other one(s) (without arrears) you have no "proof" she is defaulting until you get that repo. letter !

Thierry Lemaire ~~~~~~~~~~~~~~ 07903 017 126 Repossession Angels - South East Region Manager www.repossessionAngels.com we are looking for investors all over UK

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