By: carol

carol — Fri, 10 Jun 2011 09:33:27 +0000

We are a private firm of real estate agents we had a loan on our freehold from Barclays. the premises is worth 1 million our loan we had was for £450 K Most of the premises is let out with an income of £1900 pcm. The lower half of the premises we use ourselves to generate an income from.
During hard times We missed a few payments with barclays for our loan due to the recession so they wanted to re-adjust our loan, we agreed but when we applied for a re-adjustment they realised our credit rating was not good enough to agree a new loan so declined it, then they decided and sent us out a foreclosure letter this was 3 years ago, with no offer of help etc the reason we got into problem in the first place was their excruciation penalties which mean’t we could not pay back arrears and it snowballed, we have managed to pacify them for a while paying back £1900 pcm on an informal verbal arrangement but they had not formed any new agreement and we remained vulnerable, (they have never sent us statements or anything since the letter of foreclosure to show how the money is paying back the loan or what we assume they are paying off the overdraft we had first then working through the loans but don’t know as we get no paperwork, we tried to sell the apartments that generated the income but found by selling the upper part of the premises we could only raise around 300K not only that but we needed their authority to split title which was not forthcoming, as the majority of the worth was in the basement premises which we trade out of; we needed to keep theses as we would have not trade and no business they it is ridiculous to do this to us as it would bankrupt us as we would have to sell investment properties also generating an income but then would be faced with capital gains tax on properties already re mortgaged to release capital to keep us afloat during the last 3 years, business has picked up now and we really dont need this,we have assets I am sure if we sold all we could raise the money but would have no home investments or business which would make 10 people unemployed, (thanks Barclays) we dont want to have to sell them as we know we would never recoup anything again having bad credit rating now (what happened to the days when the bank manager just loaned money to his clients without PCS interfering with their flat criteria for lending with no leeway) is there anything you can think of that we can do to force their arm not to foreclose on us? I don’t understand why just because a pc says they cannot form a new loan they cannot override this in any way there needs to be leniency and common sense sometime sin lending surely?.We have been paying this informal arrangement for 2 years why can they not just keep to this?

Comments on: What do you do when the banks won’t lend you money?

By: carol