All Forums  archive  bankruptcy postbag for june  properties in negative equity

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Screensize: 640 x 480 800 x 600 1024 x 768 1280 x 1024 UserName: Password: Format Mode: Basic  Help  Prompt  Format: Font Andale Mono Arial Arial Black Book Antiqua Century Gothic Comic Sans MS Courier New Georgia Impact Lucida Console Script MT Bold Stencil Tahoma Times New Roman Trebuchet MS Verdana   Size 1 2 3 4 5 6   Color Black Red Yellow Pink Green Orange Purple Blue Beige Brown Teal Navy Maroon LimeGreen Message: * HTML is OFF * Forum Code is ON Smilies [quote][i]Originally posted by Chris[/i] [br]Hi a question from a newby. In October 2006 I came across a company called Momentum Portfolio Partnerships that offered to grow a property portfolio in partnership with them. At the time of speaking to them I didn’t own my own house and didn’t have the funds available to invest in property by myself as I had no significant starting capital. Momentum informed me that although I didn’t own my own house they could still start off a portfolio for me. They explained that they would obtain a residential mortgage for me on my first property on 125% basis then once that purchase had gone through they could use the extra funds generated from this purchase to be held in an investor account by them and used to acquire further properties to build a portfolio. They explained that although it was a residential mortgage they would get the lenders permission to let it out. I expressed my concerns that I had no significant starting capital to successfully run a property portfolio but they told me there was no risk to me because of their guarantees. They basically agreed to pay me every month a sum equal to my monthly financing commitments and if there was any shortfall in the difference between the rent coming in and my mortgage commitments they would make up the difference from company funds. They would also cover all void periods where the property could not be let. In addition to this they would cover all maintenance costs and insurance costs associated with the property. In order to receive all of the above guarantees I agreed to refinance or sell my portfolio after a seven year period and share in any equity made in that time on a 50/50 basis after all costs. After seeing all their guarantees and testimonials I signed a contract with them and purchased my first property with them. Since that time I have gone on to purchase another three properties through them using different lenders which include. For the last year or so I had been receiving funds into my bank account every month to cover my financing commitments with no problems and they have been successfully managing my properties for me with no issues. That was until May when my rental payment from them was not received. They then wrote to me informing me they were going into liquidation and i would have to manange my own properties. Unfortunately one has a shortfall of 300 pounds between the rental and the mortgage payment. One hase a shortfall of 50 pounds,one is being let at a very small profit and i have been told one is un lettable and requires extensive work which i can't afford. I not currently in debt and never have been but as i don't have much in the way of savings and all the properties are in negative equity i have a problem. I have been advised to by my solicitor to hand the keys back to my lenders as a voluntry repossesion then once i know what my losses are to look at bancruptcy or IVA. Although i calculate the total amount owed could be in the regioun of 100,000 plus. Do you think this is my best course of action as i live in rented accomodation and don't want to use cards to meet mortgage shortfall as i don't have anything currently on them. Any advice appreciated. [/quote]   Check here to include your profile signature.