rent receiver

Discussion in 'Mortgage arrears & negative equity case studies' started by pato1011, 25 Feb 2019.

  1. pato1011

    pato1011 New Member

    Posts:
    2
    hi am looking for advice. btl taken over by rent receiver and house put up for sale but no one bought it so the took it off the market.
    today i receive mortgage statement house in receivership 10 months
    the have block fees of almost 10 thousand and also charging me interest on mortgage of about 230 euro per month fair enough rent just covers this
    o no mortgage went up by over 12,500 thousand from 285 thousand to 295, 500 thousand roughly.
    so the keeping the rent payments and also charging me 230 pm interest plus 10 thousand block fees for 10 months
    so thats vulture funds way of doing it keeping rent payments for themselves and adding receivers costs plus mortgage interest added to mortgage
    is this right.
    mortgage was first active then ulster bank then sold to prometeria crowd who would not intertain any kind of agreement as was getting rent up so it meet mortgage payment but to late.
    also kick back from rent caps and being decent landlord not putting up rents feeling sorry for tenants etc.
    just looking for advice can vulture fund keep rent for themselves and charge me interest and fees .
    many thanks for advice
     
  2. Palerider

    Palerider Frequent Poster

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    1,212
    Yes they can, you could try and challenge the fees but realistically only if you were doing a deal to clear your debts.

    The property is theirs now, once a Rent Receiver is appointed, how come it did not sell, were there any bidders.
     
  3. pato1011

    pato1011 New Member

    Posts:
    2
    hi palerider
    thanks for reply reason for it not selling is rent way below market value.
    so the keep the rent each month 1250 for themselves and add 1230 pm onto original loan each month
    so the make 14,400 a year roughly from rent and nothing goes of principal of mortgage the then charge me interest payments on mortgage of 2760 a year which added to principal of mortgage and then fees of 12 thousand a year added to principal of mortgage based on 12 months
    so total charged is 14,400 plus 12 thousand fees plus interest 2760.based on 12 months when mortgage payment was about 1500 pm
    sure this cant be why the allowed to put the rent in there pocket.
    surely rent should go firstly to pay interest and pay receiver .
    instead the adding 230 pm then block fees thousand month .

    so i can basicaly do nothing to get out of this situation i dont have finances to soart this mess.

    thanks palerider
     
  4. Palerider

    Palerider Frequent Poster

    Posts:
    1,212
    Not to seem harsh however the rental income did not stop the house from selling, the property must not have had enough interest to make the reserve price or the reserve was too high which seems unlikely.

    It will come back to market and sell.

    I think your concept of how this is working is mistaken.

    You need professional guidance from Mabs or similar as I suggest this is outside your area of expertise.