I accidently opened a letter to the landlady. To my horror/excitement I have discovered that she is £1,000 in arrears.

1) Is GMAC rfc a subprime broker?

2) Why are the mortgage papers being sent to this house, possibly pretending to be an OO? Do BTL get less favourable terms?

3) If it is my fault she is not aware of the arrears am I liable (not forwarding on her mail).

4) What will happen to me if she gets repossesed?

Hi Deaneybear I think you should read the Dr Guid thread in the renting section. It was a similar situation.
1) Don't know who GMAC are
2)If papers are being sent to your address it's very likely it's not a BTL mortgage.
3)Don't worry about whether it's your fault, post goes astray, half of mine has and I'm sure she knows she is in arrears.
4) Read the other threads.

I wish I could be more helpful. Good luck and I would consider not paying the rent. Try and not worry too much.

nothing to do with you, phone up the bank tell them your the renter and the LL does not live at this address,

1) yes - GMAC has large exposure to sub-prime I believe. They have been laying people off in this country due to the recent market problems.

2) Undoubtedly pretending to be OO, yes, you're right, OO's get more favourable rates than BTL's. Many novice landlords do this.

3) No, you're not at fault, landlady should be collecting mail, and regardless, it is inconceivable to believe she does not know she is in arrears!

4) You'll get served your notice.

I'm 99.9% sure GMAC are a subprime lender.

Don't quote me on that though.

http://www.gmacrfc.co.uk/render.aspx?siteI...p;navIDs=1,3,18

I've seen this before on here. Landlord pretending to be OO when not. What I haven't seen is anyone dob them in successfully. Even if mortgage companies don't mind you lying to them about earnings, i.e. self cert, surely they're missing out on revenue if you say OO and aren't (or extra risk which they aren't being paid for if you look at it like that).

Also seen that opening other peoples mail is illegal. But so are lots of things that people don't get prosecuted for. Can hardly see how anyone could prosecute for an honest mistake. Maybe it's illegal for cases where people deliberately open peoples mail to do no good?

go search google with landlordzone.co.uk.

And post there ... they'll give you the feedback you need.

Start looking for a new place to rent, and make sure you don't pay the equivalent of your deposit in rent - it's probably already been blown by your landlord.

If the letter is from "GMAC Commercial Finance" then GMAC is not the mortgage lender, but is merely chasing the debt on behalf of whoever lent the mortgage.

1) GMAC are one of the biggest sub-prime lenders in the UK

2) BTLers used to get less favourable terms but in recent years they have fallen into the self-cert category and until a few weeks ago actually got much better terms

3) no, but if you knowingly opened her mail then you have committed a crime

4) you're looking for somewhere else to live

Almost impossible to prove that you knowingly opened your LL's mail. Don't worry about it.

Don't worry about opening your landlady's mail, remember the prisons are full.

Ive never EVER heard of ANYONE getting done for opening someone elses mail.

I cant see anyone be @rsed prosecuting it, or the CPS even be @rsed neither

It was partially opened accidently. I then saw a flyer inside, so I opened it to confirm it was junk mail to save postage on forwarding it. Junk mail is a real problem, we get it addressed to 4 different people (previous tennants).

She can't withold the deposit for failing to forward on mail can she?

The reality of your situation is that if the LL can't cover the arrears, they will be repossessed so within 3-4 months of now you will be out, unless the mortgage was a 'real' BTL and then the mort coy will need to let it run until expiry and give the correct notice to quit.

Forget your deposit; unless it is in the new fangled protection scheme you won't see a penny back and it won't be worth suing the landlord, you'll generate more cash simply by withholding rent on an illegal AST

Take a trip to this post by DrGuid and the comments that follow.


http://www.housepricecrash.co.uk/forum/ind...showtopic=64195

Read, digest and then post further if you want more help. The main point to note is that the whole process is quite long and there is a BIG difference between repossession and then eviction.

HTH

BTW on another forum I read about a really awkward landlord that called up the police to have them arrest a tenant for opening post. When she explained the situation they didn't take it further but it was his way of trying to 'frighten' her into paying the arrears - even though he too was being repossessed.

Just to confirm; I have and would always open post coming through the letterbox, especially if it was addressed to the landlord, for just the reason you have now found yourself in.

err, sorry, but I can't actually believe that you even bother wasting postage forwarding mail - it's previous occupiers/landlords' responsibility to have their addresses updated correctly. Don't stress about other peoples' problems, at least the kind where THEY can do something about them (I'm not saying be uncharitable), life's too short.

The Landlords Business dealings are not really your business, unless of course you are one of those many people that have a huge chip on your shoulder when it comes to renting.

If you are happy with the accomodation then pay your rent on time, and hope that the Landlord can cover the arrears. It is unfortunate however like any business deal if the business goes under you as a consumer will suffer.

I would concentrate on getting on with enjoying your life, and leave the worries of running to business to someone else.

Sorry, but that's a naive and unhelpful approach. The OP has strong reason to believe that the LL can't cover the arrears, and the consequences of that could be that he is made homeless and/or loses a significant amount of money. Anyone with an ounce of common sense would make the mortgage lender aware that the LL is sub-letting the property in contravention of the mortgage T & Cs, and take steps to protect their deposit (e.g. by withholding the last month's rent before they move out and telling the LL to keep the deposit in lieu).

That would be like saying, 'If you are happy with your ISA then keep paying into Northern Rock and hope that the government will honour its guarantee to refund savers if it goes bust'. The government has a long and disgraceful record of not honouring similar guarantees (e.g. to the victims of collapsed pension schemes), and therefore anyone who keeps any money on deposit with NR needs their head examining. Likewise, any tenant who sticks their head in the sand in the face of evidence that their landlord is in financial trouble is being similarly stupid. And as for the condescending 'mind your own business' line, a trader's solvency is the business of anyone who has a financial relationship with them.

Sorry LAurejon, as good as your advice normally is, in this case hoping that the landlord would return your deposit is like continuing to supply goods to a business that is in serious danger of going under - while you'd be within your legal rights to get your cash back, it would be a costly and long winded affair with no guarantee of getting a result (for instance, if they declared bankruptcy). Protect your cash - look for a new home, don't pay the deposit's worth of rent and remember- if they are in financial trouble, who\s to say they'll be able to afford to fix the place up if something goes wrong?

If the Landlord went bust, they house would have to repossesed. That process would take many months, and a court order would have to be sought by the Mortgage Company to regain posession. A point of note would be that you would not lose your deposit as you would be able to stay rent free until such time as the Court had handed granted posession.

The idea that in this day and age people turn up and turf a tenant out just like that, is something born out of not understanding the legal process.

If every tenant in England worried about their landlords business it would make renting a somewhat painfull experience. We are heading towards a financial meltdown, Banks will not give one jot if someone is Owner Occupied so long as they get their money.

Dobbing in a Landlord will do nothing more than greatly inconvenience the Tenant. To me its a bit like a nosey parker in a street, and its not how to win friends and influence people. Seal the letter up and dont open someone elses mail, its worse in my view that looking in your wifes handbag.

I used to work in the mortgage industry and I can tell you that GMAC are as subprime as they come. I have seen cases of people coming to me for a remortgage who were with GMAC and borrowed 15 times income. At the end of their discounted period the rate went from about 7% to 11%. The borrowers then tried to get a remortgage but no-one would lend them half the amout that they had borrowed and I certainly couldn't help them. This strategy actually worked when the market was rising becuase if they had built up 15% equity they could remortgage on a buy to let at a reasonable rate but it became obvious to me in 2003 the housing market was finished because a business model like this isn't sustainable.

Are you seriously suggesting that house prices cannot continue to go up above the rate of wage inflation forever ?

I find this very suprising and not in line with New Labour official communications who are telling us that the economy is in great shape and we are all wealthier than we have ever been before.

If you are correct in what you are saying, then that would suggest that the banking system could collapse and I cannot really see that happening as Gordon Brown has unlimited public funds saved up over the past decade of econmic prosperity. 53bn to Northern Rock and a promise of unlimited funds has helped us out of the economic crisis and we are now all safe again. Interest rates will come down in the New Year now the crash is over, and we are already seeing the green shoots of recovery as people spend some of their savings over Christmas in the shops with record sales.

I'd better get down the estate agents then first thing thursday morning then and pick up few BTLs

I reiterate, the opening was an accident. A 2 year old neice is the only one that could be blamed.

I am not sure whether the LL can pay the arrears or not. These are the facts (as per the mortgage statement).

The "expected payment" was £475 (i think, as the statement seems a little confusing) a month my rent is £550. I noticed a previous arrears of £300, 3 months ago. It says failed DD.

The "expected payments" are now £750 however the LL paid £475, 2 months ago. I am sure she is not aware that she is in arrears as she wrote me a letter in August asking me to forward on mail and inclosed a few stamp self addressed envolopes.

Either way 500 > 700 is a big jump. I hope she can afford it as I wanted to ride out this recession in relative comfort.

If I had to buy now what kind of discount would I need (if possible) to break even come the end of this crash?

I have a 35k deposit but mine and my partners income was not enough to get the house we wanted 8 months ago. My dad decided he would not lend me what I needed and I literally cried and said "This my last chance to buy a house before they are out of my reach". I am so glad I buy.

Do you think if the house gets repossed I will be able to get a good enough deal to lose nothing in the coming crash?

The house is worth (right move asking prices) 130 - 150k and there is 90k ish mortgage outstanding.

Thank you for your helpful replies.

In my opinion, and indeed for my own circumstances, it would be a good thing to rent for at least the next year and a half, but be prepared to rent for up to 3 years. To buy would be pointless when you can gain tax free while properties drop. Once they slow down after the original two years, I think is the time to start looking. I regard renting as a chance to work out what my family does and does not like for when we buy our "home" - well at least for the next 15-18 years. Perhaps then my kids would be old enough for us to travel while the next bust happens! At least unless the gov learns from this one!

Sounds like your old man did you a big favour!

Sox

Offer to buy the place off her for £90k - quick sale, mortgage paid, no agents fees - the answer to all her problems!

A lot better for her than a repo.

Remember, knowledge is power!

That will not protect me from the negative equity of a 50% crash.

*Edit*

Ignore the above. That is probably the most stupid thing ever said on this forum.

What is?

What you just said or what I just said?

What I said.

No advice here - just an anecdotal:

I do repo hearings in court, but don't often get to deal with tenants. A few weeks ago a colleague appeared on a "to persons unknown" summons ie. unauthorised tenants were being hauled in to court after a possession order had been obtained against the LL. The tenants turned up in court, completely unaware of the LL's position. They said he'd been calling around early every month looking for the rent - even AFTER the possession order had been granted. In court, the tenants were ordered to vacate AND got stuck with the costs of that particular hearing.

Be cautious and protect yourself. Identifying yourself to the lender may not be a good idea. All this is the LL's fault, but it's debatable whether he has breached his contract with you.

I have been served my notice. April 17th. How do I protect my deposit?

Are you his landlord? Spunked too much MEW on shoes and vetements-que-couvert-la-gash-tres-petite-et-semi-transparent ? Pay your mortgage you feckless scumbag and stop bringing down the country!

Simplest methdo si to withhold rent at the end of the term equivalent to the deposit.

2 points,
1. wasn't the deposit registered under the deposit protection scheme?
2. If not, then withold the deposit sounds good.
3. I can't believe you were all posting on Xmas day. Unless you are not Christians, and even then...

I don't understand; why did the tenants have to pay costs? If they didn't know that they should be out, it seems rather unfair.


Peter.

Just stop paying the rent and put it towards a deposit somewhere else - you are not seeing the deposit again. By the time she finds the money to get you out, you'll have had your money's worth.

And don't feel bad about it - she's cheating - you just want your money's worth.

Don't feel bad? I should hope not too, what a tosser for letting things get this bad.

Has the landlord been in touch? have they kept you informed along the way? Or did you just get a knock on the door by someone and given your deadline?

I wouldn't give her another penny she's clearly spending it all on shoes.

bummer, how about contacting your landlady and asking for your deposit in a holding account/or paypal or similar or a cheque dated in advance so you have secruity that you will recieve what you are owed.

Either that or do as others say and withhold the rent to the equivilant amount.

Letting agency just called me saying that the reason i have been served my notice is that my landlords circumstances have changed.

Just to reming you. Landlord has 90kish outstanding mortgage.

I think the house is worth 120k.

Agency stated 155k!

I said I am interested as I was looking to buy about a year ago before the housing market turned sour. He agreed in a nervous salesman type of way.

What should i offer?

I am a FTB and i never done this type of stuff before. Last time I checked bank would lend me 150k. Pay has increased by 25% since then.

Regards,

Deaneybear

Jeez offer them f all.

They are not doing you any favours by offering you the sale. They are assuming you'll pay more than the next guy due to the inconvenience and upheaval of moving. Give them the statutory months notice and move out.

Oh by the way, under the deposit protection scheme they cant actually issue you notice to move out until the deposit is in the scheme. So technically you could stop paying, not move out and make their lives hell come april.

You are in a very strong position if you ask me, offer no more than £90,001k when challenged just say you know thats this is the outstanding mortgage and you have kindly stuck an extra £1 so the landlady can by some sweets.

I'm being serious by the way, £90k is top wack, if they reject it out of hand say "good luck selling in this market, I'll be on to the bank to offer them £80k the same when it's repossesed, so the landlady has a choice take the money and run or owe the bank £10k short fall"

I put down my deposit October 2006, is it protected?

I will offer 90k however I pay 600 a month in rent. Interest only at 6% is less than that.

Regards,

Deaneybear

Probably not. Compulsory coverage started on 6 April 2007:
http://england.shelter.org.uk/advice/advic...wipLive-34145-3

However there had been some patchy voluntary coverage before this (unlikely if you don't already know that you're covered) or if you were given a revised agreement after April.