LPA receivers causing late payments and ruining my credit rating

by Readers Question

17:03 PM, 24th June 2015
About 3 years ago

LPA receivers causing late payments and ruining my credit rating

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LPA receivers causing late payments and ruining my credit rating

My partner and I had a portfolio of 15 mortgages with Mortgage Express and due to my partner (only) going into an IVA on his personal loans (not the mortgages – these had never been in arrears at all), an LPA receiver was appointed on all of the properties. LPA receivers causing late payments and ruining my credit

There was one line in the Terms & Conditions booklet which stated that an LPA receiver could be appointed if the mortgagor went into an IVA.

I offered to have all the mortgages transferred into my name but they would only agree to transfer one of them.

There are only a few properties left as most have been sold but when the LPA receiver pays the rental income to Mortgage Express it is after the due payment date and classed as arrears. A late payment charge is then added to the account and our credit files are affected.

I have done nothing wrong and yet my credit rating is so poor due to the actions of the LPA receiver that I cannot get any credit whatsoever.

Can I take action against the LPA receiver for paying the rents after the due payment date into the Mortgage Express account?

Thanks

Louise Star



Comments

Ross McColl

8:35 AM, 25th June 2015
About 3 years ago

How did they find out you had an IVA?

Louise Star

13:02 PM, 25th June 2015
About 3 years ago

It was my partner who went in to the IVA (not myself) with his unsecured debts. It is a legal condition that the insolvency practitioner writes to all of the secured creditors as well as the unsecured creditors. Although we had mortgages with other lenders - again none of them ever being in arrears, only Mortgage Express & NRAM appointed LPAR. When questioned as to why they appointed LPAR instead of letting us continue to manage the account, I was advised that it was one way in which they could remove 15 mortgages in one go!

Joan Keeley

19:33 PM, 25th June 2015
About 3 years ago

I'm confused because an LPA receiver isn't the same as an insolvency practitioner. LPA receivers act as your agent to collect the rent. They do not get involved with your creditors or anything else to do with you.

Louise Star

7:36 AM, 26th June 2015
About 3 years ago

Reply to the comment left by " " at "25/06/2015 - 19:33":

When my partner entered into the IVA, it was because of this breach of the T&C's of the mortgage that Mortgage Express and NRAM appointed LPAR. Had he not gone into the IVA the lender could not have appointed LPAR.

I know for fact that other mortgagors with Mortgage Express & NRAM who have entered into an IVA have not had LPAR appointed!

Joan Keeley

8:09 AM, 26th June 2015
About 3 years ago

This does still not explain why your credit rating has been affected. The appointment of LPA receivers would not have done this. Do you know you can apply to court to sell the properties yourself even though they are in LPA Receivership? It might be something worth considering as I know from experience that LPA receiverships rarely have a good outcome for the mortgagor.

10:27 AM, 26th June 2015
About 3 years ago

Hi Louise - there seems to be a lot of questions that need answering here. The first is how legal is/was the appointment of the LPA Receiver. I have dealt with Mortgage Express before - they, due to their situation, push through things that are often not as they should be and or legal or lawful - that's from experience as I say. If you want a chat I would have not problem is seeing what I can advise and or help if needed. I deal with this sort of problem all the time

Louise Star

16:35 PM, 26th June 2015
About 3 years ago

Reply to the comment left by "Joan Keeley" at "26/06/2015 - 08:09":

My credit rating has been affected because when the LPAR has paid the rental income to Mortgage Express, it has been after the due date for the mortgage and consequently showing as arrears against each property for every month it is paid late. If the LPAR had not been appointed and I had carried on paying the mortgages on their due dates, there would be no arrears.

When a tenant has been given notice to vacate the property and no rent is collected for several months and no monies are paid to Mortgage Express, the credit file shows that I have defaulted.

Unfortunately, all but 3 of the properties have been sold and even though I have requested to take (all & lately those remaining) over and transferred into my sole name, they have refused with the exception of one property.

Louise Star

16:45 PM, 26th June 2015
About 3 years ago

Reply to the comment left by "Peter Fisher - Boddington Law - (Fixed Fee Law)" at "26/06/2015 - 10:27":

Hi Peter. There is one line in the T&C's which says that LPA Receivers may be a
appointed if the Mortgagor goes in to an IVA.

I did question the validity of their actions right at the start of the proceedings and was advised that because of this clause they had the right to appoint LPAR. What I object to and believe cannot be right is that my credit rating is affected for something that it is out of my control.

This week I have been turned down for finance as I need to replace my car - which I need for work.

Prior to the appointment of the LPAR, my credit rating was excellent at 980 and now it is 445 which gets you nothing (but grief).

Mark Alexander

21:20 PM, 26th June 2015
About 3 years ago

Reply to the comment left by "Peter Fisher - Boddington Law - (Fixed Fee Law)" at "26/06/2015 - 10:27":

Peter, please contact me offline
.

9:29 AM, 30th June 2015
About 3 years ago

Hi Louise - sorry for delay but been out of office for last few days. if you want some help let me know and I'll see what I can do and on a fixed fee basis(something I do on most cases I deal with).

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