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LPA reciever 'given' possession to my lender!


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Hi All,

 

My property has been handed to an LPA reciever and I am a bit confused as I keep getting conflicting information from the lender and the reciever.

 

They 'took it' last Wed. I still haven't had a written notice from either receiver or lender. The first I knew, I was contacted by my tenant who said someone had been round.

 

The lender said that I had to pay all arears (£725) and 3 months in advance (£645) and fees (£1200) and ALL the charges ever placed on the mortgage (£3k+). They also kindly gave me 5 days to do so or the fees were going up another £800.

 

They originally said that if I paid that, they would take it back. They have since said that if I pay that amount they will 'consider' taking it back. On Friday they said that I didn't need to pay it all in one go but the fees would go up. Today they have said it needs to be a lump sum. I can't pay it. They want 5K by tomorrow or goes up to 6K. They wont accept installments, just a lump sum.

 

I have tried Stepchange, CAB, CLA and one more I can't remeber the name of! None of them have been able to help. I had to explain what an LPA reciever was to Stepchange. I am at a bit of a loss.

 

Any help would be appreciated.

 

Thanks

 

K

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Hi, who is the lender and is the mortgage a buy to let one ?

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Hi, I think you need a bit more specialised help. I will try and contact someone for you.

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hello, I am not sure if this will help you...

 

A few years ago, LPA receivers took a buy to let house from me, - I thought the tenants were paying the mortgage and they weren't. Stupid of me to trust the tenants and i should have been checking the mortgage myself.

 

Like you, the mortgage company wanted an extreme amount of money to get rid of the LPA receivers. I couldn't find this money so quickly and the fees were building up at a considerable rate.

 

The way out of this for me? I informed the mortgage company and the LPA receivers that I was living in the property myself. The mortgage company / receivers then took me to Court for trespass!

 

Within court, - the trespass case, the Judge would not allow the trespass charge against me. Also, the judge let me use 'norgan' criteria in order to keep the house being repossessed. Basically the norgan criteria allows you to pay any arrears on the mortgage over the remaining length of the mortgage.

 

That was the only way I could get rid of LPA receivers - by informing them that I was now living in the property myself.

 

I am not sure if this is the correct advice though it worked for me and allowed me to get rid of LPA receivers quite quickly without having to pay their high demand of money.

If I've given you advice, then it is just my thoughts / opinions - doesn't mean I am right!

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Thanks for your reply. I have tenants in the property at the moment so wouldn't get away with that. That was quick thinking on your part, I am glad it worked for you. K

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hello,

 

I did type out a rather long message to you and lost it. Not even my keylogger saved it for some reason... So, i start again...

 

i've given you one idea / scenario for you above but you feel you can't use it as there are tenants in your BTL property. this scenario i guess is dependant upon what relationship you have with your tenants also.

 

i guess that to pay the sum demanded by your mortgage company is also impossible, especially as they are increasing their demands!!!

 

Property law recognises 2 types of possession of land, = physical possession and the right to receive rent money. Mortgage lenders could simply seek possession and write to your tenants instructing them to pay their rent direct to them. Mortgage lenders do not do this since that would mean they would in law become landlord and have the duties and responsibilities of being a landlord. The mortgage lender does not want this liability, so, they instruct an LPA receiver to do this for them.

 

An LPA REceiver who is an agent for the borrower can accept rents without having the added liability of being a landlord.

An LPA Receiver who is an agent for the mortgage company accepting rent is the same as the mortgage company accepting rent - with the added liability of a landlord.W

Leading on from this, I assume that the LPA Receiver who has taken your property is infact YOUR agent... Your agent HAS to act for you! Whilst you have the LPA receiver in control of your property, I think you need to make them aware of this fact. (they wont like it!)

 

If there are any terms concerning the LPA receivers which you feel are wrong, or, if there is any fault in the wau your mortgage company has used its powers to appoint a receiver which has caused the relationship between the lender and borrower to be unfair to the borrower, then the borrower can apply to the court to have the unfairness rectified under section 140B.

 

So, what I am saying is this: Contact your bank and make arrangements to pay the arrears. If you google "Norgan VS Cheltenham & Gloucester" you will see that you are able to pay your arrears split over the entire remaining term of your mortgage. If you have already done this, then in my opinion the appointment of the LPA receivers is unfair to yourself and you should apply using section 140B

 

Also, I would say that there is an unfairness already since the money they are demanding from you is far higher than the arrears. The action of your bank in appointing LPA receivers has in my opinion created an unfair relationship between yourself and your mortgage company since that action has added on a lot of unnecessary expense which you are liable for. If it were a case of you having say £10,000 of arrears, then the LPA receivers could be justified in an additional expense in respect of their costs / fees etc. But this is not so in your case. You have very little arrears and the action of your mortgage company has in my opinion resulted in an unfairness to yourself - something which you can rectify yourself through the court using section 140B.

 

Sections 140A and 140B of the Consumer Credit Act do apply to Buy To Let mortgages.

 

I am kind of clutching at straws for you above.... To get rid of LPA receivers can be quite complex. Even if the total arrears were paid to your mortgage company plus other money they demand, they do not necessarily have to terminate the LPA receivers control.

 

Though, if you fight back using 140a and 140b with as many reasons why you think the receivers appointment is unfair then you should have a much better chance in getting rid of the receivers.

 

I am no expert in this which is why I took control back by living in the BTL property myself since I realised that if I did this, then there was no need for LPA receivers. Though, the unfair relationship was my fallback.

 

Hopefully someone may be able to provide you with better advice.

If I've given you advice, then it is just my thoughts / opinions - doesn't mean I am right!

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The advice I have been given to pass to you is that you would be best to see a solicitor as these LPA cases can be complicates.

 

How did the arrears arise? does the rent not cover the mortgage payments ?

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My advice is based on my opinion and experience only. It is not to be taken as legal advice - if you are unsure you should seek professional help.

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Thanks so much!!! I will look at that. I rang the FCA yesterday and they told me that the BTL market was completely unregulated and there is nothing they can do. I suppose its worth a try though. The reciever has done an inspection and is coming up with their exit strategy by Friday. If they serve notice on my current tenant, my partner might move in until they are off our backs.

 

I do have a poor payment history but it has never gone to court because I have always paid the arrears. My circumstances have completely changed now and I am in a much better position. They haven't considered this and refused my offer of £70 per month on top of the £215 monthly payment. I even told them that figure was a starting point and if they wouldn't accept it to I could look at more. I do feel I have been unfairly treated.

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Hi Ell-enn, yes the mortgage is more than covered by the rent. My partner and I were unemployed and the property was empty. It needed work and I was still covering the council tax. They knew all of this. I have a job, a tenant and have organised myself now.

Edited by karennol
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  • 2 months later...
  • 1 month later...

Hi All,

 

I am in a bit of a desperate situation!

 

 

LPA recievers were appointed by my lender, Oakwood,

 

 

I had £700 arrears at the time

 

 

paid it all off within 2 weeks of the appointment

 

 

they refused to give back control.

 

 

The reciever has got rid of my tenant and handed the properrty back to the mortgage company.

They are planning to sell it.

 

 

The 'valuation' is about 20k less than the outstanding amount plus charges etc

I am looking at at least a 30K shortfall if I am lucky. I don't have it.

 

Needless to say, I am feeling very upset by this.

What can I do?

The mortgage company has possession.

 

 

The LPA receiver has added 2.5K to the debt (inc £156 for a SMOKE ALARM!!!!!!).

 

 

The tenant never paid them any rent whilst they were managing the property so they never paid the mortage.

 

Can I apply to the court to sell the house myself? I don't trust them to maximise the sale.

 

Any help would be truely appreciated!

 

Thanks

K

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Thread moved to the appropriate forum.

 

Andy

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Hi,

 

 

it was less than 3 months arrears.

 

 

They said make a proposal to pay

 

 

I offered £100 plus the normal payment.

 

 

They didn't respond and gave it to the reveiver without further discussion.

 

 

Its a buy to let and its in my terms and conditions

 

 

they were within their rights to appoint.

 

 

I tried to get the lender to give me back control but they wouldn't budge.

 

 

They will try to sell the house now

 

 

I don't want them to stick it in an auction and leave me a massive shortfall.

 

 

I am just trying to limit the damage now but don't know what to do for the best.

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have indicate you have had arrears fees and p'haps other 'fees' like debt advisors?

 

 

these are unlawful and can be reclaimed.

 

 

get an sar off to both the LPA receiver and the mortgage company

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?419833-LPA-Receiver-Advice&p=4642900&highlight=LPA+receivers#post4642900

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?417416-LPA-receiver-help-required-please&highlight=LPA+receivers

 

 

also give gemma a shout too.

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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old and new threads merged

 

 

please keep to one thread

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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give ell-enn a shout too.

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Hiyas,

 

I wanted to comment on a few bits of your posts.

 

The reciever has got rid of my tenant and handed the properrty back to the mortgagelink3.gif company.

They are planning to sell it.

That sounds a bit strange as it means that when the LPA receiver were in control they have mismanaged the property, or failed in their duty of care by not taking rent and so on, but it would be difficult to prove without evidence and doesn't really help except in the bigger picture.

 

If the lender is planning to sell it and the LPA receiver has handed it back and had their appointment terminated then surely the lender is now mortgagee in possession? That is a whole different kettle of fish/worms/etc! That places a duty of care firmly back with the lender. They are effectively responsible for the whole situation from now on including getting the best market price, which usually includes ensuring the property is marketed accurately and fairly with adequate time and exposure (my words - not legal definition).

So you should remind them of that and write to them saying that they will be responsible for any shortfall.

 

The 'valuation' is about 20k less than the outstanding amount plus charges etc

I am looking at at least a 30K shortfall if I am lucky. I don't have it.

We all know that as soon as a lender or receiver is selling a property the price drops and a fire-sale scenario can happen. Perhaps you may be able to persuade the lender that they are more likely to get more of their debt paid back it they allow you to actively market the property with a local estate agent?

 

Have a look at these articles, they have some useful advice and info.

 

Lenders' liability for their receivers in buy-to-let cases

 

LPA receiver guidance FINAL from the CML Council of Mortgage Lenders

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Hi Guys,

 

Thanks for merging the threads. I couldn't find the original!

 

Thanks as well for your suggestions.

 

I have written to them to ask them to allow me to sell the property and for a full breakdown of the charges. The charges are for about £5000 on the mortgage through fees etc. I have asked for that information 3 times but not via SAR.

 

I will have a look at the articles after my son is in bed. I am in a bit of a blind panic to be honest. I was surprised that they gave possession to the lender, I didn't fully understand that that was what they were saying when I spoke to them. I have had nothing in writing from the reciever or the lender and this happened on Friday last week.

 

Thanks

 

Karen

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I have just read one of the articles and it looks like the reciever may have ended their appointement because they were acting too much on the lender's instruction. \the article says that the the lender loses the protection conferred by the appointment of a receiver when...."Where the mortgage lender directs the receiver in the conduct of the receivership, for example by issuing instructions as to how the receiver should act, a court will readily find that the receiver has become the agent of the mortgage lender".

 

I had an email which said, "

We await a response from the lender to our recommendation, upon receipt that when notice will be served [to the tenant] if recommendation agreed

 

Does this make any difference to my current situation?

 

Thanks

 

Karen

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any charge for a PENALTY is unlawful

no matter what the account type

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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