Since we started helping companies with their commercial mortgage debt,repossessions or liquidations we have been asked a lot of questions, so I thought we would clear up a few commonly asked ones here.
When clients who approach us to negotiate with banks to write down and refinance debt, the starting point for our team to get involved is when your bank demands the repayment of the loan. They may have tried to force you onto higher loan interest rates, bad hedge loans, or they may use the classic tactic of forcing a revaluation of your portfolio. (NRAM love that last trick. It normally leads to a much downgraded valuation and a demand for a lump sum payment to pay off the shortfall they just created for you!) They will even seek to charge you for the privilege of an enforced revaluation too.Many loan holders are amazed that banks can do this even when they may be running a profitable business.
It’s arriving at this point which gives us the required leverage to help with negotiating mortgage debt or repossession on your behalf. If they haven’t already, your bank will threaten you with one of their two favoured tactics to call in your mortgage debt loan; repossession of your properties or the appointment of an LPA Receiver for liquidation-which amount to the same thing.
How We Help With Mortgage Debt,Repossession Or Liquidation
The process for what we can do is this;
- A decision is given upfront as to if we can get a positive result with your case. All parties agree upon the strategy which will be used with the bank in question. Our negotiators only take cases they know they can win, which means they have a 100% success rate.
- Our banking specialist will take over all contact with the bank on your behalf, hence relieving immediate and future stress.
- Our specialist arranges meetings with your bank, with you in attendance, and lays out the cost, time delay, and likely net return of the banks’ existing proposed course of action.
- A different solution is offered which has a similar net return for them, but releases cash and gets the debt off their books sooner than a repossession and subsequent sale would.
- When they accept that our way makes better commercial sense, finance is arranged to pay them off- OR-
- You can decided whether you just want to sell off the properties or refinance them; we help you to arrange either option.
- Sometimes other solutions are sought, each case is dealt with individually, there is no one size fits all solution.
The main point to understand when the bank starts making threats about mortgage debt,repossessions or liquidation, is that they have already taken the decision that they don’t want you as a customer. Everything they do after that is with the sole aim of removing your debt from their books. They would have already made provision for the fact that they won’t be able to make a full recovery of the money you owe on the mortgage debt. On average they raise 40p in every mortgaged £1.
Really then, what we do is just leverage the desire banks have to remove your mortgage debt via repossession or liquidation to get the result that we want, and, to put you in a better position than before by keeping you in business with a better lender whilst getting shot of the bad one. Our system employs the most experienced bank negotiator in the UK plus some pretty creative commercial financing options. And, by creative, I mean fully legal entities, not fly by night schemes.
Last year the head of UKAR (UK Asset Resolution- which owns Mortgage Express, mortgages from B&B and £44bn of “bad” mortgages from Northern Rock) said that bank forbearance with those who can’t pay is coming to an end and they will be taking a ‘tough love’ approach. In other words, they are going to go after anyone who is currently struggling and force repossession or liquidation. Specialist bank cold-callers have already been contacting customers to “talk about interest rates and budgeting.”
If it’s happening to you, we can help with both larger personal mortgage debt,commercial / Buy To Let repossessions or liquidations on commercial property. Don’t wait till it’s too late, there are no upfront fees to find out if we can help or not. Fees are only charged if our specialist takes on your case. Watch our short video here on how we can help
**UPDATE NOVEMBER 25th 2013**
In the news today RBS has been referred to the financial regulator the FCA & PRA for seizing assets from businesses to benefit its own property empire. A report by Lawrence Tomlinson claims that RBS put viable businesses into default ( and subsequently repossession LPA receivers) in order to make more profit for themselves.
Don’t let the government con you into believing this is all in the past, it is not. It still goes on even with the new management at RBS and other banks.
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