Options available to Vulture on unoccupied house ?

[michaelg]

What options do a bank/vulture have in dealing with an unoccupied house on their books, where the owner went bankrupt and the other joint owner has emigrated and cannot be contacted ?

Can they still repossess if the ISI now owns half the house ? or can they rent it out ?

Its a big shame that the house in question is sitting empty when there is a shortage of housing available.

Many thanks

 

[Jim Stafford]

If the house was formally a Principal Private Residence then a bank would have to obtain a Repossession Order to take possession of it, as technically the house is still subject to MARP. If the joint owner emigrated on economic grounds to obtain a job, his house is still his PPR under MARP provided it is the only property he owns in the country.

The approach of the vulture fund will depend on which vulture fund it is. Some funds will just "bulldoze" ahead and appoint a Receiver and sell the house in the hope that they get away with it. Other funds will be more cautious and go down the proper Repossession route.

If the house is in significant negative equity then the owners should consider a PIA, under which the mortgage could be written down to market value.

Jim Stafford