Mortgage Express appoint LPA Recievers Walker Singleton to scare tenants off!

[chillinlong]

Hi again,

 

Thanks Meerkat for pointing this out.

 

Nightmare4banks, thanks again for your suggestions. I am all for working with as much people as possible to move forward on this. Have you already gathered a lot of people for this direction of the common grounds of lenders acting in this way?

 

Also, please everyone who is in smiliar situation drop me a PM if you want to come along to start making progress on your situation.

 

Thanks again.

[Meerkat One]

Hi Nightmare4banks

 

I haven't been through all the threads so apologise for my laziness! Can you just tell us who your lender is and which receivers your properties are with? What date were your properties put with receivers?

 

Sorry for the questions.

 

Regards

Meerkat One

[patrickq1]

hi all just reading last few posts as ive missed a lot this past week and a bit....welcome nightmare

patrickq1

[patrickq1]

• Mortgage pre-action protocol checklist - 6 April 2010
  PDF 66kb
  
• Pre-action Protocol for possession claims based on mortgage or home purchase plan arrears in respect of residential property
  PDF 41kb
  
• Guidance to judges
  PDF 61kb
  

[marley 1]

hello everyone just a quick update i now have three properties sitting empty and have been told to stay away even though i have tenants queing up to move in .two of my old tenants went to court i was not informed of dates or times these tenants were allowed to accumulate £17,000 arrears between them i do have a company helping me at the moment and they are conversing with WS but none of this is helping me at the moment i have no income bills are accumulating and im getting deeper in debt with the ME this has gone on far to long and so unfair with me bein told by law not to change the locks and to stay away how am i suppose to make good one house has steel panels on the windows looks abandoned when i ask about it they said they were selling it i told them i had tenants willing to take it on as it stood and that it would not sell the way it looked with the panels on the windows this is now making me feel ill they just want to run me in the ground and they block every avenue for me .Should i have been informed of the court hearings as i wasnt and what about all the rents iv lost and im still losing surely this cant be legal the company i have helping me are doing thier best but are also very busy they are only a two man team and at present are trying to decipher the subject access request which obviously paints me in the worst light even the tenants have milked the situation iv been honest from day one and all iv been met with are lies i realy want to fight these companies but with no money and no proper knowledge of the legal system i feel im fighting a losing battle i read your stories and it comforts me to know im not alone in this fight but they need sorting sooner rather then later before we all go under which i feel is their intention thanks everyone for your advice love to you all MARLEY 1

[patrickq1]

hi marley sorry ive not been on a lot lately,but you need to protect yourself ,you may try raising an injuction order against both WS AND MEX...PRACTICE DIRECTION 4 – FORMS - Ministry of Justice

Often a restraining order injunction is temporary at first. Many last for little more than a week. To continue the restraining order, those requesting the order must go to court and prove that the order should stand on a more permanent basis. If the person requesting the order cannot prove the need for its continuance, the injunction will last for only the short time specified by the judge. This is sadly often the case with an injunction restraining order issued against an abusive spouse. Abused spouses often rethink prosecuting their husband or wife and let the charges drop because they are afraid that even a restraining order will not keep them from harm.

[patrickq1]

A permanent injunction, also called a perpetual injunction, is a type of order issued by a court after a full trial on the merits of a case has been conducted. Alternatively, a permanent injunction may be handed down if a default judgment is entered in a case or if the opposing party agrees to the injunction. A permanent injunction order is typically issued for the purpose of requiring a person or entity to permanently stop acting in a certain manner. A court can also hand down a permanent injunction for the purpose of compelling a party to perform in a certain way.

[chillinlong]

Hi Marley 1 and Patrick,

 

I am sorry to hear about this, but really get the tenants in and then rent out. You have two choices what to do with rents. 1) Hand over to WS 2) Hand over to MX

 

As long as they are getting the money then they have no excuse to sell them. Trust me, they are looking for excuses to sell but if you prevent they cannot then.

 

Try not to worry and take them over and do what you can to get back on your feet. Conversing with WS is like talking to a brick wall, only the brick wall falls on you as they have many tricks up their sleeves for costs to spiral even higher.

[patrickq1]

EXCACTLY RIGHT GET YOUR TENNANTS IN ASAP...AND IF WS OR MEX WANT TO ARGUE THEN TELL THEM SEE YOU IN COURT i doubt wether either would want a judge to hear what you have to say...

i am looking at a file chilli about re claiming losses so i will post up when i finnish it,ime just making sure it is relevant ,

patrickq1

[patrickq1]

and if neccessary take out an injuction against WS...

[patrickq1]

Mortgage Market Review: Arrears and Approved Persons

[chillinlong]

Thanks for this Patrick. I will try and read this over the weekend.

[marley 1]

WS have excelled this time i went to my partime job last night and had to put up with one of my former tenants who had been evicted after accumulating £7000, in arrears telling me over the bar that i was bankrupt and he also new i had three properties empty that bit bein true he then proceeded to broadcast all my buisness for all to hear even though i had said i did not want to discuss my private buisness with him ever least of all in my work place he said he had found out all he knew from WS and a judge had told him i was bankrupt which is not true so they are not content with ruining my property buisness they are obviously discussing my private affairs with tenants as in the past the same tenant informed me of my mortgage details with ME when it was took out and for how much which i thought was suppose to be between me and the lender i live on a small island and now it seems everyone knows my buisness if i was upset before im fuming now as i enjoy my partime job ,WHATEVER HAPPENED TO THE DATA PROTECTION ACT it doesnt seem to exist with ME and WS how much more humilation does these companies want to put me through im realy at the end of my tether i was born on this island and now feel embarrased not knowing who knows what about me

[tarquin999]

Very interesting thread. I'm up to page 14 so far, but need to ask a question in order to plan my action tomorrow.

 

Does anyone know whether MX will automatically put *all* of the properties in a portfolio with an LPA receiver, or just the ones above 2 months in arrears?

 

I have 50+ BTL properties with MX. Due to some very bad tenants and escalating legal for evictions, I have accumulated some arrears, and am now on my second payment plan with MX. Just about to break the second of those, but if I can only get past this month, the eviction costs are now all paid for, so cash should start to flow again.

 

I can either pay rent receipts to each of the mortgages - in which case the entire portfolio will sit at around 2.5 months in arrears; or I can keep half the portfolio below 2 months arrears and the other half will sit just below 3 months arrears.

 

What would be best? I don't think MX will give me a third chance. I'm dreading the LPA Receiver, having read this thread.

Edited August 2, 2010 by alanfromderby

[patrickq1]

they will put just one or two at a time in with the receivers this way they can compound the debts and add to further mortgages eventually they will more than likely try to get a judgement in a personal bankrupcy this way they claim everything....nasty nasty people, twisted minds sole intentions is greed ,

i am beginning to wonder who is ultimitely profiting from this,reminds you of the old carpet baggers in the us 150 years ago this lot are acting same way...so its finding who is got most to gain..and is their any definitive familly ties

patrickq1

[patrickq1]

WS have excelled this time i went to my partime job last night and had to put up with one of my former tenants who had been evicted after accumulating £7000, in arrears telling me over the bar that i was bankrupt and he also new i had three properties empty that bit bein true he then proceeded to broadcast all my buisness for all to hear even though i had said i did not want to discuss my private buisness with him ever least of all in my work place he said he had found out all he knew from WS and a judge had told him i was bankrupt which is not true so they are not content with ruining my property buisness they are obviously discussing my private affairs with tenants as in the past the same tenant informed me of my mortgage details with ME when it was took out and for how much which i thought was suppose to be between me and the lender i live on a small island and now it seems everyone knows my buisness if i was upset before im fuming now as i enjoy my partime job ,WHATEVER HAPPENED TO THE DATA PROTECTION ACT it doesnt seem to exist with ME and WS how much more humilation does these companies want to put me through im realy at the end of my tether i was born on this island and now feel embarrased not knowing who knows what about me

 

i suspect MX and WS have intentionally been sending your mail to his flat address with intent to cause harm,, they will just address the letters to the occupier..this is deliberate,what you need to do is find out if their are any letters /mail from the empty properties if so and they are from WS and MEX then start an action with the INFORMATION COMMISSIONERS OFFICE and also with the FSA and FOS

you need to take control of these empty properties and get them upo scratch and rented out,ley them take you to court..use this guy as a witness if possible

patrickq1

[pigland]

Hi all,

 

Marley 1,

 

Sorry to hear this. I to have experience of WS as do many others.I hope Steve can sleep at night. There's a lot of people who have had their lives ruined by his actions.

 

When is someone going to take MEX and their principles to task before they retire with their multi-million pound pensions?

 

I hope it gets better for you!

 

Kind regards,

 

Pigland

[patrickq1]

4.The other very important point to remember is that the LPA is acting in the interests of the landlord/landlady and not the lender.So you could sue in negligence for the loss of any rents and any shortfalls in sales providing you have evidence of the contrary from a firm of chartered surveyors that can act as expert witnesses in legal proceedings.The surveyor would be appointed for the proceedings and not on behalf of the landlord/landlady or lender.

 

 

5.I think it is also worth considering suing the directors of these companies for obvious reasons which I have need to put in detail here.

this is something that should be considered sue the directors but also find a group of chartered surveyors who will go over facts and figures for you and everyone wants business at the moment so the CS would be more than happy to WORK FOR YOU UNDER WRITTEN CONTRACT ,whereas WS have no contract with you so you are certainly under no obligation to do anything to please them collect the rents yourselves bank in a different bank and pay MEX what you can afford ..until such times as you feel things arepicking up

patrickq1

ps really need to nail MEX on the securitisation and find out if your properties have been packaged into 100 parcels i suspect strongly this is the case

[patrickq1]

Securitization - Wikipedia, the free encyclopedia

[patrickq1]

^ a b c Asset Securitization: Comptroller's Handbook, Office of the Comptroller of the Currency, November 1997, http://www.occ.treas.gov/handbook/assetsec.pdf

[patrickq1]

Is Buy-to-Let a Pending European Crisis?

Asset Securitization Report--SourceMedia (December 10, 2007)

Nora Colomer

The U.K. has seen buy-to-let (BTL) loans flourish in recent years. This product has become a popular and profitable investment with the residential housing boom.

However, new entrants to the sector are caught in a confluence of rising interest rates, lower rents and waning capital gains that threaten to whittle away at their profits. This leaves market sources wondering whether landlords will continue to hold on to these investments or cash out.

Over the last two years, interest cover ratios have dropped and the number of self-certified borrowers has increased, raising questions about the quality of the loans being written.

"Up until now, buy-to-let mortgages have performed well, but we have seen some non-conforming lenders loosen criteria in a bid to attract both subprime and buy-to-let borrowers, so that means that the quality of the loans are not as good," said Greg Kohansky, an analyst on Fitch Ratings' European structured finance team. "The quality of the buy-to-let as well as owner-occupied mortgages has declined."

There is one other complication: The buy-to-let sector was virtually nonexistent in the last recession, making it difficult to gauge how these loans will perform in more stressful environments, say market sources.

In the wake of, and as an effect of, the U.S. subprime implosion, some U.K. mortgage lenders have suffered liquidity constraints. This lack of liquidity in the capital markets has not only led to an increase in market lending rates, but also a repricing of lenders' product offerings. Also, some products have already been scaled back in scope, according to Kohansky.

Marketwide Liquidity Problem

Paragon Mortgages, the third-largest buy-to-let lender in the U.K., is the latest victim of the lack of liquidity. At the end of November, the specialist lender announced record pretax profits on the back of increased lending, its loan book's good performance and improved cost-income ratios.

Paragon said it might have to arrange a GBP280 million ($570.6 million) standby rights issue instead of renewing its working capital facility, which is set to expire at the end of February 2008. Paragon's current facility is priced 90 basis points over Libor. Although a renewal has been negotiated in principle, the terms remain unattractive for a number of reasons, including the high cost and short-term nature of the proposals.

"Paragon is facing funding-related pressure, just as Northern Rock did, due to the turmoil in credit markets, [and] their usual sources of funding are not fully open to them," said Maddi Patel, RMBS analyst at Barclays Capital. Patel said that as a nonbank institution, Paragon does not have as many funding alternatives. An important source of funding for banks and bank societies is retail deposits, which Paragon clearly does not have, she said. Also, it cannot use the Bank of England facilities through which RMBS can be issued.

If the ABS market remains an unattractive funding alternative, then Paragon will have to look elsewhere. But it will not be alone. As Paragon's share price has tumbled by over 50%, other leading players in the sector, including Alliance & Leicester and Bradford & Bingley, have also seen their shares fall by more than 40% since the start of 2007.

However, Bradford & Bingley said last week that its annual underlying profits for 2007 are expected to be in line with analysts' expectations. The lender reported that its new business pipeline at the end of October 2007, though lower than in June 2007, was higher than it was a year ago.

According to B & B, higher funding costs and lower growth have led to a decline in its net interest margin. It said that credit quality remains strong, though arrears levels have increased somewhat. "The lender recently sold GBP4.2 billion of residential and commercial property loans in order to improve its cash position, with the residential (social- housing related) portfolio sold for GBP2.2 billion to Dexia SA, while the commercial property loan portfolio was sold to GE Real Estate for GBP2 billion," Deutsche Bank analysts reported. "Of the two, the former was reportedly sold at book value and the latter at a discount." Bradford & Bingley said that it "remained confident about the demand for its buy-to-let mortgages."

Meanwhile, Alliance & Leicester reported that its 2007 full-year core operating profits, excluding treasury investment impairment, are expected to beat analyst expectations of GBP598 million. The company, however, is becoming more dependent on customer deposits and committed wholesale funding, which includes a financing arrangement backed primarily by residential mortgage assets.

"It's a marketwide liquidity problem," one market source said. "Money is tight and if securitization remains closed to players heavily dependent on it, structured finance funding will remain under pressure going forward, but the greater risks are limited to the smaller, less capitalized players."

One Thing Leads to Another

The slowdown in house prices will certainly be a test for the buy-to-let market sector and might begin to challenge the notion that investors are in this product for the long term, say sources. "Everybody talks about the lack of supply in direct correlation with the rise in house prices," Fitch's Kohansky said. "If buy-to-let landlords, especially those who entered the market in the last couple of years, decide they have just hit the cycle at the wrong time and get out, it will alter the supply/demand balance."

In the U.S., rapid house price depreciation has caused borrowers to have no home equity on some loans originated in 2005 and 2006. Some argue that the U.K. housing market cycle looks to be at a different stage - with the housing sector having weathered the 2005 slowdown relatively well. However, Fitch analysts said it would be foolish to think that house price declines seen in the U.S. will not be seen in the U.K.

Nationwide's house price index reported its first monthly decline since February 2006. The index showed a 0.8% fall in house prices in November, the sharpest monthly fall since September 2003. "Looking at the several housing indicators available, it is clear that market sentiment on house price evolution has deteriorated," Societe Generale analysts said. "Perception of house price development is actually much worse than what the U.K. house price index suggests." They added that property derivatives suggest that house prices would fall 7.5% in the coming year. SocGen expects a slight deterioration in U.K. prime RMBS performance as house price growth moderates and lending appetite remains low.

Although the volume of buy-to-let loans makes up a smaller percentage of the overall U.K. mortgage market, the risk is more concentrated than it is in subprime loans.

Kohansky estimates subprime loans account for about 6% to 8% of overall mortgage origination in the U.K., but he acknowledged that no single county has more than 8% to 11% concentrated risk in this sector. By contrast, buy-to-let mortgages make up 10% to 12% of origination in certain counties and in some places, like London, concentration of buy-to-let loans can be upward of 30%. "In the U.S., there was also a heavy concentration risk of subprime borrowers in certain pockets of the country, like California for example," he said.

Even if buy-to-let investors were encouraged to sell off portfolio holdings, first-time buyers will presumably pick up the slack, say sources. It has been argued that house prices are being driven more by buy-to-let investments than by first-time buyers in some areas of the U.K., like London. Without the buy-to-let sector to compete with, first-time buyers would be better positioned to participate in the market, especially if prices continue to dip.

For several years, the performance of buy-to-let mortgages has been remarkably good, often outperforming owner-occupied homes, even after correcting for typically lower loan-to-value ratios and stricter affordability requirements, according to Fitch. "Some economic analysts point out that the rental return of buy-to-let assets is already much lower than alternative investments, meaning that such an investment can only be sustainable under expectations of strong house price growth, and that rental income streams are much more volatile and sensitive to general economic prospects," Fitch analysts said.

There has also been a trend toward lowering lending criteria within the buy-to-let sector, Barclays' Patel said. "Previously, it was uncommon to see the interest rate coverage below 125% of the stabilized margin monthly repayment of a capital repayment mortgage," she said. Recently, there have been instances where ratios are at 100% or less, and, in some instances, they were based off the teaser period rate and an interest-only monthly repayment. This has made the underwriting criteria for non-conforming buy-to-let mortgages significantly less stringent, she added.

Only a very small percentage of buy-to-let buyers fall into the subprime or non-conforming category, Patel said, and they tend to be a very different type of borrower. Generally, the sector tends to attract professional landlords with a number of years of experience, a long-term view and a desire to make capital gains over the long term. Many have entered the sector to take advantage of the relatively high leverage available to supplement their other underperforming investments.

However, beyond the riskier borrower profiles, the sector has also seen a continued "blurring" between buy-to-let and owner-occupied mortgages, Fitch said. Often, owner-occupied properties are rented by the owner without notifying the bank to avoid the extra charges and a potentially higher interest rate. This is often referred to as "disguised buy-to-let." Fitch said there are also borrowers who do not meet the affordability criteria for an owner-occupied mortgage, so they opt instead for a buy-to-let mortgage. This allows them to meet eligibility requirements on interest coverage without actually intending to let the property.

"The question that remains is whether landlords are in it for the long term - clearly the benefits of property investments have fallen off the radar," Kohansky said. "If capital appreciation was threatened, then there exists the possibility that some buy-to-let investors might start looking to liquidate properties and lock in' paper profits in cash.Were this to occur, then any house price declines could be exacerbated by any buy-to-let concentration in the region."

RMBS Performance

The strong growth of buy-to-let origination has not been reflected in buy-to-let RMBS issuance. The latter amounted to only 9.4 billion ($13.74 billion) in 2006 and has so far reached 7.5 billion in 2007, according to a Merrill Lynch report. "Given the small volumes securitized in times of a booming market, it is unlikely that we would see much issuance coming through in the next few months, given the expected slow-down of the buy-to-let market," Merrill Lynch analysts said. "The only exception could be constituted by pre-placed/retained issues."

It is likely, Merrill Lynch analysts said, that when issuance picks up in the buy-to-let sector, spreads will widen away from the earlier tight pricing that brought buy-to-let spreads closer to prime RMBS and away from non-conforming spreads. New deals from the Aire Valley master trust have been posting arrears that are higher than average. Paragon's deals show an increasing share of amateur landlords, which could potentially be the most negatively affected from a slow-down in the housing market.

Barclays' Patel said that prepayments have remained relatively stable over the past four years. By contrast, arrears have picked up as interest rates have started to increase, though they appear to be stabilizing and are now below that of prime RMBS for the first time in three years.

However, Fitch analyst Alison Ho said that though she has seen little in terms of rising arrears, there has been a noticeable pickup in prepayment rates to levels not seen before. "Why have CPRs risen?" she said. "It could be an indication that maybe those landlords with long-term intentions may not be in it for as long a term as before."

It was particularly interesting that the portfolios affected were from larger, more established originators who could be considered savvier market players, Ho said.

[Meerkat One]

Hi Tarquin999

Have MEX sent you a letter which in essence allows them to put all the properties together and to offset any outstanding arrears? If they have then they are linking your portfolio and can claim arrears over the whole. I am assuming you have not had any properties put with lpa receivers?

 

Regards

Meerkat One

[Meerkat One]

Hi Marley1

 

Can you get into your properties? Is there anything to stop you putting tenants in? I did pm you with another load of questions - sorry!

 

Have Nutrade been involved with your properties at all - they are usually the information gatherers for WS.

 

Regards

Meerkat One

[tarquin999]

Have MEX sent you a letter which in essence allows them to put all the properties together and to offset any outstanding arrears? If they have then they are linking your portfolio and can claim arrears over the whole. I am assuming you have not had any properties put with lpa receivers?

Hi Meerkat One.

 

Thanks. No, I don't recall anything from MX explicitly to this effect. Each property has its own account number and is paid individually.

 

Our Portfolio Manager always refers to "the portfolio", though.

 

Nope, never had a property with an LPA Receiver, and never want to! However, I have stepped over the 2 month arrears level for the second time this year. First time I managed to pull back the arrears quickly, and I should be able to again this time (hopefully once and for all). However, last time I was told I would not get a second chance.

 

Annoyingly, it was our Portfolio Manager who told us to evict the bad tenants. It's costing us a fortune in legal costs (and dog handlers), and then we've got to refurb the trashed properties. Personally, I feel we would have had better cashflow by accepting lower rents and not incurring huge eviction/refurb costs. We were on the recovery until they stick their oar in.

 

Frustrating, scary, annoying!

[marley 1]

hi meerkat one no i cant get it them they have changed all the locks im having trouble getting in to pm at the moment so missed your message sorry, i have been told if i go near them again i will be breaking the law since WS have took over my mortgage arrears have quadrupled and i have lost three tenants two houses have been sitting empty since march even though i have tenants waiting to go in the third has been empty since 17th july like i said before they are blocking all my attempts to sort out my houses, although i know have a company repersenting me and they are going through the SAR from WS as we speak im losing money and incurring more mortgage arrears as the houses are now empty WS are making no attempt to chase the tenants for the arrears that they allowed the tenants to build up which is now at least £25,000 the tenants have played the system telling me they were paying WS and telling WS they were paying me in truth they were paying no one just taking advantage of the situation even though i had told WS what they were up to they allowed the situation to continue i even ask WS if i should pursue the tenants for arrears they said they would deal with it two of the tenants had been taken to court to be evicted the arrears had been proven in court they still have done nothing they have just caused me more financial worries this company should no longer be trading i cant understand why ME are still using them surely they must notice they are not performing the job they have ask them to do they have only made matters worse i have had this stress since january 2008 i owed a couple of months arrears at the begining due to a bad tenant and my fixed rate ending i made several attempts to sort matters out with ME they chose to use WS and its been down hill since thank god for this forum but we all need to get control of our buisnesses sooner rather then later we need to bring them buggers down theirs enough of us see how they feel when there jobless and homeless might think twice playing with peoples lives in their next jobs if they ever get remployed after what they have done thanks again everyone for your help and support new week new beginings x