Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
I am having difficulties to find information online about how a repossession rescue company operates. Could anyone please point me in the right direction? Informed views would be greatly appreciated. Thank you in advance. Yannick
Hi, do you mean a 'buy your property quick' type Company?
Are you researching from a sellers perspective, or are you looking to set up a 'rescue' company yourself?
One of the big misnomers nowadays is that you can buy a property (at a BMV (!) price) and then offer the seller a continued tenancy ... this is known as 'sale and rentback' and is hugely frowned upon by the FCA and the lenders. This practice may have some merits, but is deemed to have placed vulnerable homeowners in an unassured long term residency and houses have been sold ... and therefore the security of long term tenure (whatever the 'rescue' company promised) was removed too.
Whoever enters in to this market needs to take care and comprehensive legal advice.
FOR INDEPENDENT MORTGAGE AND INSURANCE ADVICE
PROPERTY TRIBES FINANCIAL SERVICES
CONTACT US FOR LIFE INSURANCE QUOTES AND STRATEGIES. PORTFOLIO MORTGAGES (VARYING TERMS) COVERED
MULTI CREDIT REFERENCE AGENCY REPORT, IN ONE DOCUMENT HERE.
Thank you for the helpfull pointers,
I am just doing some basic research. I am not in debt nor about to be repossessed. I had never heard of the 'sale and rentback' schemes and not interested in this. Just looking at understanding what a repossesion rescue involves and try to undersand WHY would a borrower at risk of being repossessed would sell BMV to a repossession rescue company ? It does not make any sens to me (with the little information I have gathered so far).
Are you a moderator here? It says Property Tribes FS on your post?
Oh and I forgot to reply to your first question, I am not sure if by "repossession rescue company" I mean a "buy a property fast" company. Probably I suppose? But mostly I am trying to understand why would one wish or be forced to sell BMV. Thank you.
"Are you a moderator here? It says Property Tribes FS on your post?"
Not a moderator, nor an owner of Property Tribes in any way. However, for a number of years we have worked very closely with Vanessa and Nick, and our Firm (H D Consultants, est. 1993) has provided a joint-branded proposition of our huge range of financial services and products to the PT community.
More about us here;
and of course
Hope that helps to clarify
Thank you for the information.
Hi Yannick and welcome.There are many reasons why people have to sell quickly and below market value such as debt, death, divorce, redundancy, illness, accident etc.When property owners are at threat of repossession i.e. in severe mortgage arrears, one way out of that is to sell the property to a cash buyer - often the "quick house buyer" type companies.If they have sufficient equity, they can sell at a discount, pay off their loan and arrears, and move on.The quick house buyer company can complete in a very short time frame, which is what makes them attractive to distressed sellers.Sometimes the company will advance the mortgage arrears to the seller, allowing them to stop the repossession, and then the sale can be completed without any stress to the seller.The issue with many of these companies is that they take advantage of vulnerable people, often agreeing a price, and then dropping it on the day of exchange/completion. By this stage, the seller is so desperate that they have no other option other than to accept. They are effectively "cheated" out of their equity. I personally know of one individual that this happened to, and he tried to take his own life as a result of these dirty tactics when the company buying the house dropped the amount they would pay to the exact amount of his outstanding mortgage and arrears. They effectively cheated him out of £50K which he was going to use to start a new life.These companies are completely unregulated, and it therefore attracts rogues. Sometimes, they do not even have the cash to buy and are merely introducers of leads to other people who do have cash and claiming a commission for the introduction. It is generally a very murky world, although I know of two ethical companies that offer this service.With regards to moderation, my husband Nick is the sole moderator of Property Tribes.Hope that helps?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Thank you Vanessa, yes your information helps a lot ! Seems like a lovely site and I see you have David Smith on board, a big plus. He drafted our contracts a few years ago.
The story of the man who attempted to take his life is horrendous ! Sounds like the murky world of rent2rent and HMOs in general in East London... Why on earth is the industy so badly regulated?! It was so hard to start our house share company in such grey and complex legal enviroment... And unfair for those trying to operate by the book. Not good for anyone especialy tenants...
After doing some basic research, I understand a little better what Repossession Rescue is. It would appear this worked well when tons of repossessions were taking place after the 2008 crash. But some say it is not the case anymore because the regulations and economics have changed and one can no longer get properties below market value in this way. Does the tribe aggree?
Yes this is classic Kevin Green territory. Clearly deeply unethical way of going about things