Tilly V mortgage express repo

[kennythecelt]

Hi Tilly, with you all the way my friend.

 

Will do what I can as you have always been supportive to everyone on this forum and we owe you a lot. ((((hugs))))

 

Just thinking aloud, so bear with me....

 

Similar to Ellen's question, any other type of insurance- endowment (surrender value), etc? Is it possible to claim anything for loss of O/H earnings through the car insurance, for injury, perhaps, maybe even insurance on a credit card?

 

This is probably a very long shot, but when you took out this mortgage, was it well within your means when you were both working, were your outgoings accurately reflected? Did the valuation of the house accurately reflect selling prices in the area when you took the mortgage out? (Those types of issue however are not going to be of help in the short term, but might be something that you can pick up on.)

 

Re sale prices of homes in your area. Do a google, as there are several web sites offering recent house sale price information, although this can be 4- 6 weeks out of date. This might give you a better idea of what your house might sell for in your post code area.

 

Re another house, don't just concentrate on Local Authority, try local housing associations. Where do you live and I will get a list of them and contact details. A letter of support from councillor and MP might help here as might a letter from GP- consultant? Any dependent children or people that you have a reponsibility towards ie caring for?

[kennythecelt]

Ellens right. Here's a link to their web site to save you time.

 

Shelter England: the housing and homelessness charity

[kennythecelt]

Tilly, this is stating the obvious but it has not been referred to yet on this thread.

 

What charges have been made by ME for late payments, letter charges, returned DD charges etc?? That can soon add up, with interest etc.

[kennythecelt]

Hi Tilly

 

here is a link for contact details of all Housing Associations within Northampton District.

 

http://www.northampton.gov.uk/downloads/HousingAssociationNewContactList.pdf

 

Generally, unless the council has introduced a single tiered waiting list agreement with the Associations, it means a separate application to each. Shelter or CAB might help here, but the homeless officer also has a responsibility as they must give you housing advice.

 

Most of them will have a web site and you never know, you might also find that they have some available properties currently listed- just a possibility.

[kennythecelt]

No problems Tilly, you are amongst friends here!

 

Remember, you will get through this, although it seems very difficult at this time!

 

Speak later. Kenny. x

[kennythecelt]

Let us know what help is needed and we will get it for you!

[kennythecelt]

Well, tilly, after all the help you have given. Wish there was more we could do apart from advice, sharing, support and friendship.

 

Let us know how you get on please. Take care of yourselves.

[kennythecelt]

Thanks saint that means a lot to me xx

 

You mean a lot to us Tilly!

[kennythecelt]

calmer and a lot less worried than i have been im not saying im not still worried

but a tiny bit of that black cloud has lifted,so posative thoughts from now on.

 

Positive thoughts, focus and assistance from CAG!!

[kennythecelt]

Nightmare4banks- some excellent advice there and very helpful!

[kennythecelt]

Add me to that as well!

[kennythecelt]

For info

 

http://www.consumeractiongroup.co.uk/forum/bank-charges-consumer-issues/144063-help-pledged-over-repossessions.html#post1514942

 

We are gathering further info to assess its implications.

[kennythecelt]

Tilly, you have a pm.

[kennythecelt]

Sell to Rent/ Rent Back

 

Unlike equity release, sell-and-rent-back is not at present regulated by the FSA although this situation may change in the future. A result of this is that unlicensed people can offer these schemes and they have not been through the rigorous checks and regulation that FSA-authorised practitioners have to comply with. Anyone should bear this warning in mind.

 

 

The folowing links give mainly negative feedback on rent back. I could find nothing positive on the searches I made. I will add these links however if anyone can find one.

 

1) Link to This is Money- general information 20/06/07

(note links at bottom of page)

Should you sell then rent back your home? | This is Money

 

Mortgages and homes guide: Sale-and-rent back schemes | This is Money

 

 

2) "Sell to rent boom as buyers back off": The Guardian 17/2/08

Sell-to-rent boom as buyers back off | Money | The Observer

 

 

3) BBC Money Box audio

BBC News Player - Sale and rent back

 

"Controversial "Sale and Rent Back" schemes are under pressure to sign up to a voluntary code of practice.

 

Homeowners who are failing to meet their mortgage payments are offered the chance to sell and rent back their property.

Some companies have been accused of charging inflated rents and not offering a secure tenancy. The National Association of Sale and Rent Back (NASARB) and The Property Buyers Association (PROBAS) are both devising codes of practice which they hope will protect consumers from rogue providers."

 

 

4) Ellesmere Post and Neston Burgh Council

Beware of ‘sell and rent back’ arrangements 11/12/07

 

Caution urged. Housing Benefit difficulties.

 

 

5) BBC Watchdog (slightly older 10/10/06)

 

BBC - Consumer - TV and radio - Sell-to-rent-back companies

 

 

6) Daily Mail 3/9/07

 

Struggling homeowners warned to beware 'rent-back' deals | the Daily Mail

 

7) BBC 9/05/08: Repossession figures ignore many in trouble

 

 

"A growing number of people facing repossession are selling their homes to buy-to-let investors through so-called "sale and rent back" schemes, also known as "mortgage rescue". As prices have risen, it has become harder for buy-to-let investors to obtain properties at the right price."

 

 

8) BBC Radio 4 Money Box 16/2/08: Sale and rent back rip-off claim

 

BBC NEWS | Programmes | Moneybox | Sale and rent back rip-off claim

 

 

"These people otherwise would be repossessed and in turn would be homeless and need re-housing. [instead] they can sell and rent back. They can release equity. And often the rental payments they pay are far less than their previous mortgage payments."

Adam Sampson agreed that the principle of sale and rent back was sound. But he said Shelter came across many problems with it.

Undervalued "People are being ripped off. We are seeing people who are getting only 50% or 60% of the value of their homes instead of the 70% to 90% they should be getting. Many of the promises that are made that people can stay in their homes for the rest of their lives are not being honoured."

 

 

9) The Telegraph: 14/04/08 Watchdog to regulate "sale and rent-back"

 

Watchdog to regulate 'sale and rent back' - Telegraph

 

"Nearly all the firms claim that they are the answer to people's financial problems but the Office of Fair Trading, the Government watchdog, which has been investigating the unregulated market since last month, is becoming increasingly concerned with some of the companies promoting the schemes.

A spokesman for Citizens Advice said: "We are seeing increasing problems with sale and rent back.

"Our concern is that people are in a vulnerable position when they have been invited to take these decisions.

"We know of examples of homes being bought for 40 per cent less than the market value. And claims that people can stay in their property for life are just not true. Most short-hold tenancy agreements run for just six months."

 

 

10) BBC Inside Out West Midlands 25/04/08: Repossession Misery

 

BBC - Inside Out - West Midlands - Repossession misery

 

"But what happens when the sale-and-rent-back companies can’t pay their own mortgages and their houses are repossessed by the bank?"

 

 

11) BBC 4/07/07: Stretched homeowners eye rental option

 

BBC NEWS | Business | Stretched homeowners eye rental option

 

 

"From a seller's perspective, there are plus points as well as drawbacks to sale and rent back. The seller gets urgently-needed cash to pay off debt and does not have the financial black mark of repossession on their credit file."

 

 

12) http://news.bbc.co.uk/1/hi/business/7400304.stm

 

"The Office of Fair Trading (OFT) is to study whether people facing repossession are adequately protected in so-called "mortgage rescue" schemes.

 

Householders in difficulty are offered a quick sale of their home at a discount by buy-to-let investors and in return become a tenant in the house.

Consumer groups have called for regulation of these schemes, also called "sale and rent back". "

 

 

13) http://www.oft.gov.uk/news/press/2008/62-08

 

The OFT has launched a market study into the sale and rent back sector.

Sale and rent back (also known as 'sale and lease back') arrangements involve individual homeowners selling their property at a discount in return for the option to remain in the house as a tenant. These arrangements may be taken up by consumers in financial difficulty facing possible repossession of their homes.

 

 

14) BBC Politics Show 18/04/08: Help for Homeowners

(This relates to Wales but hopefully something similar in England)

 

BBC NEWS | Programmes | Politics Show | Help for homeowners?

 

"The Government will cut red tape to enable housing authorities to operate "sale and rent back schemes".

 

 

15) Daily Mirror: Robbed of My Home: 21/05/08

 

Robbed of my home - Mirror.co.uk

 

"Among the victims is Debra Ford, 48, who is disabled with low blood pressure.

She sold her four-bedroom house in Swansea for £145,000 in June last year to "sale and rent back" firm Home Assured.

She hasn't received a single penny for it yet and has since discovered it was worth at least £170,000 at the time.

Debra says: "They paid off the £84,000 I owed on the house.

"They then deducted all sorts of charges including six months' rent and haven't given me anything for it."

Home Assured remortgaged the house, defaulted on the payments and it has now been repossessed."

 

 

16) Daily Telegraph 24/05/08: Buy-to-let landlords profiting from misfortune

 

Buy-to-let landlords profiting from misfortune - Telegraph

 

 

17) Previous thread(s) on CAG

 

http://www.consumeractiongroup.co.uk/forum/residential-commercial-lettings/118503-anyone-heard-repossession-angels.html?highlight=rent-back

 

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/122796-sell-rent-back-schemes.html?highlight=rent-back

 

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/120295-home-buying-companys.html?highlight=rent-back

 

http://www.consumeractiongroup.co.uk/forum/mortgages-secured-loans/98734-firmsthat-buy-your-house.html?highlight=rent-back

 

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/87468-can-anyone-advise-housing.html?highlight=rent-back

 

http://www.consumeractiongroup.co.uk/forum/residential-commercial-lettings/64319-buy-rent-back-companies.html?highlight=rent-back

 

 

Issues with Sell to Buy/ Rent back:

 

 

• It may seem attractive as a last option to people in a desperate situation, but the purchaser also knows this is a last option and that stacks the cards heavily in their favour. The purchaser is really a property speculator, interested in profit.
  
• Contract needs to be very closely scrutinised, by an expert as it will be designed to protect the interests of the purchasing company, not the seller. This needs to include the tenancy and rental side, repair responsibilities etc. These transactions are not regulated the FSA and the OFT is currently mounting an investigation. There are instances of people being evicted when rental agreement is due for renewal. There may well e very hefty rebnt increases.
  
• Sale price is generally only a maximum of 70% of valuation, sometimes much less. If there is little equity in the property, then debt can still be outstanding, after the sale, which remains the responsibility of the seller to repay in addition to any other debts secured on the property. There are instances where negotiations being deliberately protracted with the purchaser trying to reduce the price as contract nears completion. If you have rent and are paying back what is left of the equity, can it be afforded?
  
• If there is little equity, priority should be to maximise the sale price, to pay the mortgage company as much as possible otherwise debt problem may carry forward.
  
• Tenancy is initially for maximum of 6 or 12 months on Assured Tenancy basis. Rents can rise considerably thereafter. There are reports of houses being bought and subsequently flipped over. A major plus is that there may be no legal fees (check), no estate agent fees and no removal costs at this point in time. Likewise, it enables you time to stay in the same home.
  
• Property speculators like this as an investment because it is unregulated and because they are in control and can make more money than buying a normal market property. There is potentially more profit here for them than buying property at auction.
  

Edited May 30, 2008 by kennythecelt
update info and links etc

[kennythecelt]

Tilly, I have just started the post and I will provide further info on the above post. It will just take a bit of time.

 

This could still be a serious option. If you are forewarned, some pit falls can be avoided.

 

I will also be looking at the possibility of a housing association buying the property, but don't get your hopes up on that one as my knowledge of public sector housing is Scottish, not English and there are differences.

[kennythecelt]

Another question for the Council list:

 

"Would a local housing association be interested in buying my house and renting it back to me?".

 

I will check this angle out today.

 

Keep going Tilly, we will all get you there!!

[kennythecelt]

Shelter seem to have quite a bit of advice that might prove useful to you Tilly.

 

Shelter: Emergency help and advice

 

Shelter: Evicted or asked to leave

 

I think this suggestion is very sound and would endorse it. They will act in your interests and on your behalf in your dealings with the Council and potential homelessness situation.

 

They are recognised experts,.............. more so than a lot of local authority homelessness staff.

 

Tilly, post on sell to rent is now ready for you to have a look at.

[kennythecelt]

I'll bet your glad that is over, Tilly!:o

 

I was just providing the information available and it was not a problem. It might also be useful for others at some point.

 

It is for you to decide if it is for you as an option. There will be good points remember, its just that that side does not get reported. If you knew the person who was buying then it would be completely different.

 

I have outlined some of the issues to consider in the rent- back post above, so won't repeat them here.

 

Catch up later, Kenny.

[kennythecelt]

Hi Tilly,

 

My wife used to work in a homelessness unit. I will get her to check this thread over for advice for you. That means you should get pretty good advice on that side of things as well.

 

Her name is Mrs Kennythecelt, BTW. :o

[kennythecelt]

Hello again

 

Mrs KTC will check things over tonight Tilly.

 

I have just phoned the Housing Corporation who regulate and sort out funding for housing associations in England. Home : Housing Corporation and spoke to their Enquiries Team. I was told that Housing Associations have the power to buy a home such as yours where the owner has mortgage difficulties and is facing repossession. It means that the family does not have to present to the local authority as homeless, which costs an awful lot and the association increases its housing stock. That seems initially like good news, but......

 

Each housing association is different as they are in different areas with different housing needs. But, if they have a need for a house like yours in an area where they need to buy homes for their long term plans, then they might be interested. They are not for profit organisations and have a social consience, meaning a fairer price is more likely and you are more likely to pay off most of the outstanding mortgage.

 

Tilly, this would need to be done very quickly and means that the list of Housing Associations I posted earlier need to be contacted and asked if they would be interested in buying your house in view of your circumstances. Have you got someone you can trust to do that for you?? I am aware that this is happening late in the day and you have so much else on.

 

Please don't get your hopes up on this as I don't want to do that to you. Its just that I have found the information out and it might be something that perhaps, could work. If you know what I mean??!

[kennythecelt]

You need to speak to someone in their development teams. They will have staff who acquire property, develop their stock.

 

Some of the specialist housing associations ie for special needs might not be interested as they need houses for the particular needs of specific tenants so concentrate on the bigger associations first, they have more budgets.

 

Here's the link again for easiness.

 

http://www.northampton.gov.uk/downloads/HousingAssociationNewContactList.pdf

[kennythecelt]

Forget that idea then, so very sorry Tilly.

 

It looks like there are no alternatives, I'm afraid.

 

We need to concentrate on the court issue and making sure the Council rehouse you in the area you want.

 

Again, apologies.

[kennythecelt]

Right, do the obvious things- as in those property selling programmes.

 

No dogs, kids, husbands, etc and all the usual advice.

 

Fingers and toes crossed.

[kennythecelt]

Right Tilly

 

Backside kicking time:o

 

Get off line if you need to concentrate on the house for the viewing.

[kennythecelt]

Who he? :-?

 

I thought it was Mr Tilly- thanks for explaining!