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  • Landlords in Distress

    PLEASE HELP - desperate situation

    Hello.  I am so worried and i am so stressed that I am almost too ashamed to write but as i feel i have reached the end point i feel i have lost everything ;so i dont know if anyone can offer me any way out of this.  I am truly sorry to go on but i will try and be as accurate and to the point but this is an open forum but i respect PT and hope and here goes.

    Firstly i am sorry if there are mistakes in my typing.  I am sight impaired (blind).

    Last year (may) i took out a BRIDGING LOAN from a company whereby they asked  minimal questions and did no valuation on my 3 properties (2 of which are rented out and 1 is my main home). 

    The lender borrowed us £220k for 6months at 2%pm. AND SECURED by way of a SECOND CHARGE over all 3 properties.  Values are £485k / £595k / £660k.  with a combined 1st charge balance owed of £770k. 

    The original bridge loan was taken out to repay another secured loan from a private individual we knew but this loan as it was secured against 1 of the properties and the individual was repossessing the property by court / bailiffs - we had to act fast to secure his money to pay him off and because our (me and my wife) credit profile was poor due to missed payments defaults etc we could not remortgage so took out this bridge loan as it was fast and no valuations or legals upfront costs and we were very very desperate to repay the other loan. 

    This new loan was so easy as they came to our house with the loan documents and literally told us to sign and then he went taking the docs we signed with him. 

    No explanation was given to what we were signing, I would not be able to see what i was signing and my wife felt very intimidated at the whole process and she could never read and understand legal documents as her reading of english is not good.  We just signed. 

    The loan funds came and the bridge co repaid the other loan directly off. 

    Our exit was to refinance as we were advised that if we went to a big mortgage broker they could arrange a BTL on our 2 rental properties and raise enough to repay the BRIDGE which was to be £278k in November 2018. 

    We attempted the remortgage in my WIFE'S NAME ALONE as her experian credit report was better then mine.  surveys were done and then last minute - the lender (Kent reliance) declined. 

    This was even though we had been very upfront with the broker of our credit issues and was assured it would be fine and lender accepted. 

    This decline left us shocked as we were now nearing the month to repay the bridge and was getting calls letters, people ringing up and saying things like - WE NEED TO SEE YOU TO PAY US OFF!.  Very intimidating - scared my wife very much. 

    We explained remortgage situation and then we also started Re bridge process with another P2P Lender who said they would accept the valuations that were previously done on the BTL and take a 2nd charge on all 3 properties again. 

    Then so much happened whereby i was having extreme bouts of depression worry as this lender kept asking for this document that document and it just all got too much for me as my family were all worried we going to lose everything and my wife fell ill my mother elderly fell ill. 

    I just felt it all getting to me as it is even as i write this. 

    This lender then changed the goal post saying they needed to revalue all  3 properties again after saying they accepted previous vals.  All came to a head when the existing Bridge lender said that now i am paying 5% a month interest as i had not settled by the date agreed. 

    But i had corresponded with them to request extension at 2% but they kept charging 5%. 

    All this time i did what i could to arrange another bridge to repay but i can only say that i must be a mentally ill person as i just could not grasp that £16-17k was being added every month to my debt.  This ballooned to currently £398k as it still remains unpaid as i have attempted to sell these at below market values as all this time i was getting this advice that advice family worried turning on me for now having to lose everything. 

    Now also lender Appointed LPA who called me and literally acting like a gangster is what i can say - saying to me he can now do whatever he wants to these properties as they are his. 

    I did arrange solicitor who had been liaising with the lender but they still appointed LPA and the 2 properties are to be Auctioned end of the month even though i have a buyer who agreed to buy 1 of the properties and complete before months end BUT MY SOLICITOR said they did not accept this offer of part payment as they wanted full amount inc now the LPA fees. 

    I am so so sorry for such a long note i guess I've made mistake after mistake and allowed this to get to the point whereby I've now lost everything as even after they sell these at auction they wont clear their amount and will take action to repo out home 

    Also sorry last attempt I again went to another big broker firm last week who arranged an amAIP with another Bridge to repay this off. 

    Again new vals done BUT THIS TIME in another hammer blow - all vals came in well below previously and the lender said they cant work with those figures. 

    Ive been haemorraging money and really feel that I've just reached a point of NO RETURN as i just cannot see how this van be stopped even though my solicitor has said we go to court to stop the sale by auction. 

    My vision so.poor that my hand needs to be placed where to sign - so why did i sign all these docs giving this lender the authority to sell my properties at auction my solicitor asks me - I didn't. 

    Its all my fault i know but i guess i am asking can anyone advise if anything i can do i expect its way to late.  My marriage my family life all at risk.  The stress is brought me to my knees. 

    If nothing else i hope and pray no one else goes through all this.  But then no1 will be that much of a - I REALLY REALLY FEEL LIKE CALLING MYSELF THE WORST THING POSSIBLE FOR RISKING EVERYTHING AND ALLOWING MYSELF TO.PUT MY KIDS MY WIFE MY MUM TO BE THROWN OUT OF OUR HOME BY MY NON ACTION FRLAYING AND JUST NOT GTADPING THAT £16K A MONTH IS BEING ADDED TO MY LOAN.  I MUST HAVE BEEN ON A DIFFERENT WAVE LENGTH OR MENTALLY WRONG AS TO WHY I ALLOWED THIS.

    PLEASE FORGIVE ME.

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    Ayaan

    FIrst don't feel ashamed people make these mistakes all the time you are not alone there will be many others in a similar situation. I don't know for definite but I imagine if you are registered partially sighted and they came to your house and you signed documents that they failed to provide in large text or other ways that you could read then there maybe a way out of this for you as you have been failed as a consumer.

    I would suggest first you contact the citizens advice bureau

    https://www.citizensadvice.org.uk/

    and also a debt charity

    https://www.stepchange.org/

    for free advice.

    Also try the royal national society for the blind as they will be able to provide further information to you

    https://www.rnib.org.uk/services-we-offe...ts-service

    Remember however bad it seems it will get better eventually. Tell your wife admit your mistakes you have made the firsts steps to sorting it by asking for help.

    All the best

    Marcus

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    I WILL WRITE IN CAPITALS TO NAKE IT EASIER FOR YOU TO READ

    FIRSTLY I AM SORRY TO HEAR YOU PLIGHT. I CAN SEE WHY ITS DISTRESSING.

    YOU HAVE THREE ISSUES

    1) WERE YOU TAKEN ADVANTAGE OF IN TAKING OUT THESE LOANS. IF SO I THINK YOU MAY BE ABLE TO CLAIM THEY BE UNENFORCEABLE. HOWEVER THIS IS USUALLY FOR FIRST CHARGE LOANS SO IT WILL BE HARDED TO RELY ON LEGISLATION OTHER THAN THE CONSUMER CREDIT ACT. THIS REQUIRES A LAWYER WILL EXPERIENCE IN FINANCIAL SERVICES. (NOT PROPERTY)

    2) CAN YOU RAISE FUNDS ON A NORMAL BASIS AVOIDING THESE HIGH RATES. WITHOUT KNOWING MORE IT IS HARD TO BE DEFINITIVE. HOWEVER YOU HAD BTL ALMOST APPROVED WERE IT NIT FOR YOUR CREDIT HISTORY. I THINK THAT CANBE REPEATED WITH SOME TWEAKING OF YOUR ARRANGEMENTS. OBVIOUSLY ONE NEEDS MORE INFORMATION BJG IT SEEMS YOU STILL HAVE A LOT OF EQUITY IN YOUR PROPERTY. YOU MAY ALSO HAVE OTHER ASSETS YOU CAN USE.

    3) CAN YOU BUY YOURSELF ENOUGH TIME TO ALLOW YOU TO IMPLEMENT A SOLUTION? THIS IS MORE A LEGAL QUESTION I SUSPECT SLIGHTLY LINKED TO POINT 1.

    I HOPE THIS HELPS AND YOU MANAGE TO MOVE FORWARD AND PUT AN END TO THE STRESS AND WORRY.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022


    Dear Ayaan,

    I am so sorry to hear of your plight and I can imagine the tremendous stress you are enduring.

    First of all, this saying has comforted me - "Real problems can always be solved.  It is only imagined ones that seem insurmountable".

    Whilst I understand your feelings, you should not be too harsh on yourself at this challenging time.  We all make mistakes, and you have taken responsibility for yours and asked for help, and that is the first step to making a situation better, so well done for that.

    It sounds like you may have been a victim of a loan shark, and even if that is not the case, you have a number of routes of support and redress.

    There is a great deal of consumer protection around financial matters, so your first port of call is to ring the Financial Ombudsman first thing this morning.  Their "Consumer Helpline" is 0800 023 4 567Log a case with them and ask them to intervene with your lender to stop the action and give you time to sort things out.  They may want to launch an investigation into your documents and how you were pressurised into signing documents in your own home.

    The second call you make this morning is to Landlord Debt Advisory.  This is a special company who are experts in landlord debt and solving problems in this area.  Give them a call on  0161 222 4311 .  They will be able to appraise your position and hopefully find a solution to help you get out of it with minimal stress and losses.

    Finally, please stay strong and know that there is a lot of support for you and you can come onto Property Tribes and talk if that would help you manage your stress.

    If you think it would help to speak to me in person, you can find my number in the "contact us" section of this website.

    I wish you every luck in sorting out this distressing situation and please let us know how you get on.


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    Hi

    I hope everyone is well.

    Just wanted to update everyone   I am sorry to be quite depressing but I will be as brief as to the point aswell.

    1.  We failed the injunction to stop the properties going to Auction by the LPA and went to Auction 30th May and 1 Sold - after all fees deductions which came to £42k with solicitors acting for the lender charging £24k alone.  Lpa fees £11k ettc etc.

    2   The other flat did not sell and remains unsold available on auction website.  What happens now ?

    3.  The flats tenants are paying i think (as they are not answering my calls) paying rent direct to LPA.  - DO I STILL PAY THE MORTGAGE ? as everyone including the LPA RECIEVER says i dont own the property anymore ?

    4.  Do i really legally Have no say in the property - is the AST I SIGNED via the agent who let the propertt NOT VALID NOW?.

    6.  Is it worth me fighting this further in court as we hadca buyer whereby if we had sold the first oroperty which sold at auction would have meantcwe recieved an extra £25k towards the ocerall debt ?.

    7   What happens in relation to the 5% rate of interest PM even though properties are not mine ?

    8.  Anyone offer any advice and how i can move and resolve this.

    How can a solicitor charge £24k for selling a house for £432k.

    They will come for our main home now to recover shortfall.

    Any advice would be appreciated thabmnk you so much.

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    Hi Ayaan, to echo the sentiments above, I am very sorry to hear of your situation.

    All the suggestions above are great and should offer a steer on where to go from here.

    My only addition is in regards to a point that Vanessa touched upon around the signing of the documents.

    Speaking from my experience working in financial services, we would always allow (at least) 24 hours for you to be left with any legal documents in order that you can read them and take any necessary legal advice.

    The fact that you were given no time at all, that you are partially blind and also that you say your wife is not so proficient in English would absolutely present a case that you could not have fully understood what you were signing up to.

    I would echo too that no problem is too big to be dealt with if you tackle it head on. You have done the hard part, which is acknowledging it, and so now you can look at some of the options available to you as suggested above.
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    As the loan was (partly) secured on your main home I believe the loan comes under regulation by the FCA. 

    This gives you lots of protection - which I would have thought your solicitor would be aware of.  Under the regulation they have an obligation to "Treat Customers Fairly" so you need to ask the lender for a copy of their TCF policy and you could likely show that they did not treat you fairly giving you grounds to complain to the FCA. 

    Also the onus is on the lender to prove affordability - so they must satisfy themselves that you can afford to repay the loan. 

    You could ask for a full copy of your file including all documents you have signed under the Data Protection Act.  This should show you what checks they made to show you could afford the loan.

    So you should be able to come up with grounds for complaint by showing they have breached their TCF policy or not done adequate affordability checks (or not taken into account your special needs or not given you a cooling off period). 

    Once you are clear about your grounds of complaint, make a formal complaint.  Under the FCA regulation, the lender should also have a "Complaints Procedure" which will give you the steps on how to make and escalate a complaint. 

    A copy of this procedure should have been given to you when you took out the loan.  If you don't have this - ask for it now and follow it diligently and don't give up. 

    I think the Financial Ombudsman will only follow up your complaint once you have taken all steps in the lenders Complaints Procedure and failed to get a satisfactory solution.  Make sure you have a solicitor who is experienced in financial regulation. 

    Good luck.

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    Dear Aayan

    I am so sorry to hear of your situation.  It looks like you are already receiving a lot of good advice and support from other Property Tribes people but just to add, that if your case goes before a judge, they will be empathetic to your position, particularly in respect of keeping you in your own home, paying due attention to your disability and your wife's language barrier.

    We wish you luck.

    Jeni Browne

    Mortgages for Business

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    Hi Aayan,

    Well done for reaching out, it looks as though people here have been genuinely very caring and helpful. Don't give up hope. Yes, you've made mistakes that you realise only too well now, but with the right advice there must be a way out. Take care

    Babooshka

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    GOOD AFTERNOON AYAAN

    I'M SORRY TO HEAR YOUR STORY AND HOPE YOU ARE ABLE TO TAKE THE ADVICE OF THE MORE EXPERIENCED PEOPLE ON THIS FORUM.

    I JUST WANTED TO WISH YOU WELL AND SAY THAT TIMES WILL FEEL VERY TOUGH FOR YOU AT THE MOMENT, BUT PLEASE UNDERSTAND THINGS WILL GET BETTER FOR YOU AND YOUR FAMILY.  WE ALL MISTAKES AND CAN FEEL THAT WE HAVE LET PEOPLE DOWN, HOWEVER, THERE ARE A LOT OF KNOWLEDGEABLE AND CARING PEOPLE WHO HAVE ALSO MADE MISTAKES AND THEY ARE THERE TO HELP YOU.

    TAKE CARE, YOU'RE NOT ON YOUR OWN AND GOOD LUCK

    COLIN

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    Hello All &  Vanessa

    I hope you are well.

    Firstly thank you all so much for your advice kind thoughts.

    Quick update - the hearing is today as last week it never happened.

    To say these last few days have been stressful and often shocking is really an understatement.

    We had people turning up at our Tenanted house saying to tenants they bought the house and for them to leave in 1week!!!.

    Then people turning up at our house saying We know your house is being repossessed - we want to do a deal before you lose everything. 

    That was so strange and very unnerving.  My children were shocked.  I have the court hearing today.  As expected the other side pulling out all stops to Sell at auction - at very low guide so heaven knows what they put as reserve - Even though i have cash buyer at a decent price. 

    I really don't know where this will all end up but i have done my best and even on the last few hours trying my best to get this resolved by refinancing with another Bridge loan to pay them.off and sell at close to a market value price so they don't come after our house.

    I would like to thank you all so much for your advice kind words.

    Thank you Everyone
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