There are alternatives to sale after repossession

Author: Move with Us10 Feb 11, 11:47 AM

The pressure that lenders may face due to a potentially inconsistent property market in 2011 means that any shortfall that lower house prices bring may have to be written off after repossession. Lenders need to ensure that shortfalls are kept to a minimum. To do this, should they consider other options to selling the property? Are there any alternatives?

Move with Us predicts that house prices will fluctuate around the zero mark throughout 2011 but will vary according to geographical areas. Some will be worse affected than others and the north/south divide will become more apparent due to the south benefiting from increased development.  Job uncertainty will also impact the housing market meaning that shortfalls in loan-to-value may occur if houses are to be repossessed. Furthermore, interest in the rental market seems to be on the increase due to job losses and strict mortgage criteria.  

With repossessions, and voluntary possessions, comes the added risk of receiving an asset that should be disposed of without incurring too high a loss, if any at all. In addition to ensuring the principles of TCF are met, lenders should consider other alternatives to selling property prematurely. This may go a long way to mitigating against shortfall for lender and borrower alike.

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Achieving the best returns through Move with Us asset management

Author: Move with Us12 Jan 11, 01:11 PM

Within today's market, lenders still approach asset management and the management of properties in their possession very differently, with varying focus on suppliers and how they operate internally in order to deliver results. Performance and results-based management information has long been the traditional method of looking at how a panel is performing.

Common performance criteria include: achieving the highest market values, controlling timescales and managing aged stock positions. In addition to traditional performance measures it is also important to consider what common rules can be applied and what can be done to make the process as simple and efficient as possible. At Move with Us our past experience and partnership with a number of major lenders has highlighted three areas which are key to both ourselves and our clients in delivering efficient and effective asset management services. 

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Rent arrears on the rise in 2011

Author: Move with Us4 Jan 11, 10:31 PM

The New Year has seen many predictions in the press around property markets, in particular the enormous swing in opinion over property values. One area however which must have as much attention is that tenant arrears are likely to increase in 2011 as a result of on-going credit card borrowing to pay rent or mortgage payments. A recent YouGov poll for Shelter suggests that over two million households are using this method to fund their housing.

This trend is a worrying one for lenders and landlords alike, as those householders using credit cards to meet every day living expenses will eventually run out of credit.  For buy-to-let landlords that will increase pressure on mortgage payments which, in turn, could drive an upward trend in arrears on buy-to-let portfolios. 

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