Singing Pig

""Some folk just don't have a clue how to help themselves, it is depressing"

its depressing because the odds are that the vendor is severely depressed, and has now gone into "denial mode". You will need to be very supportive and careful in your conversations with him/her  - as often as not, most of what you will tell him/her will go straight out of their minds immediately.  Depression is often the minds way of coping with the impossible  -  ie  "i wont face this repossession, and then it won't happen". It is a very understandable reaction to  severe stress.  Have a little more compassion and you will get there.

Did I sound incompassionate?

Maybe I'm just letting my true feelings out on here, but I assure you I am nothing but charming and helpful to the vendor. I have done all I can to stop their eviction, and to keep them fully informed of what I am doing and why I am doing it. They understand that I am taking a chance paying for surveys when they may still get evicted, yet they cannot keep an appointment nor post a form or two when they have days til eviction.

As it happens, I think he is fully prepared for the eviction and is facing it as he has packed and found lodgings, he understands the choices he has, but there is a block on action.

I understand depression, but I think it is a poor excuse in this instance.

BTW, I meant to post.earlier. I say I am from a property company, but I dont think it really matters

I am desperately trying to help a client get his loans reduced, but it is not going too well.

He has a mortgage of £62200, a secured loan with Hurstanger for £9000 (second charge) and another secured loan for £15000 with Welcome Finance (third charge). This totals £86,200 and the property on the open market is only worth about that.

Have been on the phone to Welcome as they are the 3rd charge so have most to lose if he is repossessed, but so far they will only drop by 10% (£1,500). 

We will try and negotiate with Hurstanger and see if they will come down but in the meantime, has anyone got any suggestions on how we might haggle further or has anyone dealt with either of these two companies before?

Would it also be worth contacting the Mortgage company (Redstone) to see if they will drop bearing in mind the costs they will incur if they have to repossess (quite likely unless we can help)?

Any suggestions welcome? 

JoandDave, it is not just a case of ringing them up and haggling a deal down. It is all to do with presentation of evidence. Gather together all the evidence and put forward a case as to why they should accept a lower offer.

Read through every thread in "Lets revisit secured loans again", as all the answers are there. 

Also if you want give me a bell.
 

Johnny. You've mentioned many times that in order to get a lender to accept a lower offer you should present as much evidence as possible.

How do you go about working out and showing that the lender will actually get less if they repo the property? What comparables do you use etc? I've heard that most properties sell for around 95% of OMV via auction.

Do you use a set formula showing the lender they will only get x% of OMV if they repo and have to then sell again? How do you justify your offer?

Cheers,

Jays
 

Wanted to kick start this excellent thread again, and an answer to the last post would be more than useful!  Naturally want to do a deal if possible, but passionate about helping out distressed/threatened current owners!

Visited family this evening - repossession hearing set for 10th June.  Current mortgage balance of £97k, arrears of £2,659, no other secured/unsecured loans but £2k in arrears with Council Tax.  Previous CCJ of £10k, paying £10/week.  ERC of £4k.  Current monthly mortgage repayment: £600.  They offered the lender an extra £120/month to pay off the arrears - this was rejected. 

Property was valued six months ago at £125k.  Rental value: £400-425/mth, so difficult to stack.

So, only chance is to negotiate with lender but not experienced at doing this.  Any help warmly welcomed, if not to do a deal, then to aid the family at risk of repo.  If a deal follows, great.  Inspired by Phil Martin's philosophy...looking for a little empowerment here.  I'm all too conscious that I need to work at 100% efficiency and get the feeling with a bit more knowledge, could make a difference.

A great deal of water has passed under the bridge since this post was started!!

There is a company called JD LAW that will negotiate secured debt on your behalf in order to try and make the deal fit.

As a part of the process they will also do a full income & expenditure on the vendor to:
1. Try to ensure that there are no debts that could come back and bite the purchaser i.e bankruptcy
2. To assist in any un-secured debts that may be a problem in the future

JD LAW will:
1. Try to ensure a deal is done prior to an eviction.
2. Continue to negotiate right up until the property is sold elsewhere (auction?)
3. Continually advise the vendor on what to do, when under creditor attack, before, during and after the sale.

Not every case is successful!! e.g. if Kensington are a part of the equation, then the deal is a no go. That does not mean that the deal is rejected, because one day Kensington will realise how much they lost by not negotiating. So JD LAW will still continue to negotiate with Kensington.

Welcome, First Plus and Egg are very agreeable to negotiate with JD LAW, with good results for all concerned.

Costs - No win no fee - simple as that!

For further information click on JD LAW Secure Debt Negotiators
 

JD,

Thanks for the update and quick response - I'll give them a call.