Renting a house in mortgage arrears

sammy2016

My friend is in her house over a year now and has recently accidently found out her landlord that she pays in cash and get a receipt every month is in arrears for the past 4years with her mortgage,she has no written lease with the landlord so what are her rights if the bank move in and try take the house?

Marcusm

Most likely as close to none as possible although the repossessing bank or receiver could agree to grant her some. In some cases they go for immediate vacation, in others they accept the tennat while they determine their strategy. Ultimately to be the tenant of a deflating landlord is a precarious position.

4ensic15

If there is an attempt at repossession she should be served with papers and would be entitled to appear in court. This would slow down the repossession process. If there is a receiver appointed she should pay rent to the receiver when he asks for it. If she is properly advised she can again string things out.
Ultimately if the landlord does not restructure and the bank move in she will have to move out, meantime she should hang on in.

sammy2016

thanks for your answers she is currently looking to move and cus with 3small kids she cant afford to be homeless but she has no luck at the moment would the bank take the house off the landlord after the first sitting in court?

4ensic15

sammy2016 wrote: »

thanks for your answers she is currently looking to move and cus with 3small kids she cant afford to be homeless but she has no luck at the moment would the bank take the house off the landlord after the first sitting in court?

The bank can appoint a receiver without going to court at all. She will then have to deal with the receiver who may accept rent or who may attempt to remove her. She should make sure the tenancy is registered with the RTB.

Marcusm

4ensic15 wrote: »

The bank can appoint a receiver without going to court at all. She will then have to deal with the receiver who may accept rent or who may attempt to remove her. She should make sure the tenancy is registered with the RTB.

Doesn't this depend on when the mortgage was granted and whether the mortgage is residential or not? There might still be a requirement for a (slow) court process.

4ensic15

Marcusm wrote: »

Doesn't this depend on when the mortgage was granted and whether the mortgage is residential or not? There might still be a requirement for a (slow) court process.

It depends on the terms of the mortgage deed. All mortgage deeds in use by the banks allow for the appointment of a receiver. Receivers are not appointed over family homes but are frequently appointed over investment properties. It is possible that the bank don't know the property is let and will go the repossession route. The occupant should be served with a copy of any proceedings.

Sad Professor

4ensic15 wrote: »

It depends on the terms of the mortgage deed. All mortgage deeds in use by the banks allow for the appointment of a receiver. Receivers are not appointed over family homes but are frequently appointed over investment properties. It is possible that the bank don't know the property is let and will go the repossession route. The occupant should be served with a copy of any proceedings.

What about if they've told the bank they are an accidental landlord? Would the bank still treat it as a family home even though they know the mortgage holder is receiving rent but not paying them?

4ensic15

Sad Professor wrote: »

What about if they've told the bank they are an accidental landlord? Would the bank still treat it as a family home even though they know the mortgage holder is receiving rent but not paying them?

Once it is let the bank don't care if they are an accidental landlord. The will appoint a receiver irrespective of whether or not it was originally intended as a PPR.

The_Conductor

4ensic15 wrote: »

Once it is let the bank don't care if they are an accidental landlord. The will appoint a receiver irrespective of whether or not it was originally intended as a PPR.

In this case- its entirely possible that the bank are not aware that the property is let at all- as the OP has been paying the tenant in cash- which will minimise the papertrail. The fact that the landlord hasn't paid the mortgage in 4 years- means its going to happen sooner rather than later. Its entirely possible a receiver may be appointed to the property- who imagines the property to be vacant- and he/she may seek a tenant at current market rates for the property. If the current tenant has not had a rent increase in the last 24 months (entirely plausible- given what the OP said)- they could be served with notice of a rent rise to market rates by a receiver immediately- with the prospect of an order to vacate the property if the receiver is readying it for sale.

Its a hell of a messy situation to be in- the OP's friend would be best advised to seek alternate accommodation elsewhere asap.

4ensic15

The_Conductor wrote: »

In this case- its entirely possible that the bank are not aware that the property is let at all- as the OP has been paying the tenant in cash- which will minimise the papertrail. The fact that the landlord hasn't paid the mortgage in 4 years- means its going to happen sooner rather than later. Its entirely possible a receiver may be appointed to the property- who imagines the property to be vacant- and he/she may seek a tenant at current market rates for the property. If the current tenant has not had a rent increase in the last 24 months (entirely plausible- given what the OP said)- they could be served with notice of a rent rise to market rates by a receiver immediately- with the prospect of an order to vacate the property if the receiver is readying it for sale.

Its a hell of a messy situation to be in- the OP's friend would be best advised to seek alternate accommodation elsewhere asap.

Once the bank becomes aware there is a tenant in the property they will have to deal with the tenant. If they think it is a PPR they won't appoint a receiver. the bank may only find out about the tenant when the attempt to serve proceedings. A receiver may be appointed at that stage. A lot depends on how the tenant handles the situation. Some well advised tenants have done well in these situations.

How can you accidentaly find this information?

4ensic15

Deleted User wrote: »

How can you accidentaly find this information?

What information?

L1011

4ensic15 wrote: »

What information?

The OP said that the tenant accidentally found out the landlord is in arrears. That is something that'd be hard enough to accidentally find, I'd imagine.

4ensic15

L1011 wrote: »

The OP said that the tenant accidentally found out the landlord is in arrears. That is something that'd be hard enough to accidentally find, I'd imagine.

A letter from the bank addressed to the landlord might be accidentally opened, or might be opened in the house by the landlord and accidentally left behind.

Sad Professor

Yeah, my landlord left all his arrears letters from the bank in the house.

sammy2016

She found out off a neighbour who the landlords cousin,so its messy and could be in court next month,the house is a family owned house she has 5kids 3under 18 and is seperated from her husband but his name is also on the mortgage so both are in court by the looks of it the tenant isnt resigered with the PRTB

the_syco

Get out of the house now, and get the deposit. If the bank takes the house, the deposit may vanish.

sammy2016

the_syco wrote: »

Get out of the house now, and get the deposit. If the bank takes the house, the deposit may vanish.

Shes currently looking at houses but has no luck as there are none in her area