Author Topic: Repossesion vs Private Sale  (Read 1594 times)

lulu

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Repossesion vs Private Sale
« on: Aug 13, 2008, 05:35:07 AM »
Hi there,

This is my first post and I'm hoping that someone might be able to give advice over my problem.

Quick story:

Have a few rental properties in Burnley, Lancs.

A few years ago emigrated and left the property in the care of lettings agent.
Lettings agent we used turned out to be a rogue. We thought the houses were tenanted (as they were when we left the UK)
but then the money stopped coming in, the agents were saying there were people still living there but their benefits had been stopped
and so we didn't get paid either.
Eventually found out that wasn't so, houses had been trashed and now uninhabitable.

Got a new agent, houses still trashed, bills coming at us from all directions, from council tax and others......Eventually our UK bank account
ran dry and now mortgages are in arrears. Banks are coming at us threatening to repossess.

So we decided to sell them. Found a company that was willing to buy from us at about 80% of their market value. We are prepared to take
a hit on them as we would rather sell them ourselves than have them repossessed.

The way I figure it is that it is better for us to sell for what we can and then owe the bank the difference. Once they are sold we won't be liable for C Tax, repairs, insurance and the like.

I know if they get repossessed then we will still have all the arrears added, c tax, insurance etc etc.... until the bank then sell them, which could be a long time coming.
I have heard that they just put them up for sale in the estate agents and it's anyone's guess how long they take to sell.

So last night my husband made the call to the bank.

Apparently we can't sell them for less than what we owe. Regardless of the fact that we have a buyer!

So it's OK for the bank to repossess and sell in their own sweet time maybe for £10K less than we might be able to get. Therefore making our debt to them much bigger than if they let us sell. I know it's all written down in the contract and all that but where is the logic in this.

We already can't pay the mortgage, c tax etc because we no longer have any money in our UK account.

We don't own a property in the country we now live in (we rent) and my husband is the only one working whilst I am a stay at home mum with young children. So we don't have money to send back to the UK as we are barely able to make ends meet here.

We don't want to run away from our responsibilities but I do have a problem with their policies and wonder what you guys think?

Many Thanks
Lulu