Buy To Let...Repossession & Shortfall

[twodogs]

Hi,

I'm looking for a little advice regarding a BTL I get involved with in 2007.

 

 

A friend talked me into "buying" a BTL flat,

I never saw it and only ever paid £1000 to secure it,

 

 

I ended up with a flat and £165k interest-only mortgage.

But it was a bit strange as I ended up with £10k cash from the deal

as the flat was valued much higher than the mortgage,

as it was bundled up with several other flats.

 

 

it was the biggest mistake of my life,

the rent didn't cover the mortgage payments and the service fees etc.

 

 

I was taken in by the "on average property prices double every 10 years, it'll be a great investment, just sign here...."

 

times got a bit harder,

it was empty for a while and I just couldn't afford it and the flat was repossessed

and the bank sold it for less then half the outstanding mortgage

I now have a shortfall of £100 grand plus.

 

 

They took me to court and I've ended up with a charging order (restriction) on my interest in our family home, which is really worrying me.

The debt is in my name only but the house is in joint names and we have a young child.

I can raise £10k as a F&F offer to settle by borrowing from family

 

 

my main worry is them applying for a sale order of our family home,

it's probably worth about £180k with £135k outstanding mortgage

and I know these sale orders are rare but I tend to have that kind of bad luck.

 

 

They sent me a form to fill out for my income and expenditure and on paper

I've got about £200/month spare, but there's always something and I rarely have that left over.

I have no other debt fortunately.

 

It just seems so ridiculous that they sold it for such a huge loss and what's outstanding will take forever to pay off

plus the constant threat of them selling my home from under me, it is really worrying and putting a strain on family harmony,

I can't focus at work and losing sleep.

 

Any advice greatly appreciated.

[citizenB]

Well you can insist they provide information on the sale and how they have arrived at the figure they are demanding.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387500-Mortgage-shortfalls-Request-Breakdown-of-balance-owed-**Correct-as-at-October-2013*

 

What is the equity in your family home ? I rather suspect they might not attempt to force a sale if they are going to be left with a further huge shortfall ? If the property is in joint names and you have a small child I would think that will also cause a few problems for them.

 

I cant see them accepting £10,000 on a £100,000 debt.. however I guess there is no harm in trying.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387498-Mortgage-shortfalls-Full-and-final-settlement-letter-**Correct-as-at-October-2013*

 

Were there any default/penalty charges on the BTL mortgage that you might be able to reclaim. Were you asked to take out any Payment Protection Insurances that might have been mis sold and you could reclaim ?

 

I am sure others with more knowledge will look in as soon as they can, so please don't make any hasty decisions.