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anonguest

Repossessed House And Asset Management Co.

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I posted yesterday about a repossessed house that curiously, to me, was not being sold by the lending institution (Brittania) BUT by (via?) an intermediary company. The house is marketed by a local EA.

EA confirms details to me on the phone this morning that:

The company in question is an asset managment company, AMG Asset Managment.

and that the EA have no interest in the property (other than their normal sales commission of course).

Have had a quick look at their website and it looks legit. Original question remains as to whether, previously unknown to me, that this manner of selling off repossessed properties via such companies is more normal than I thought. I always assumed the banks have dedicated in house collections/repossessions departments to handle this - and presumably at lower cost?! Liasing with EAs and auction houses directly.

Maybe this is yet just another form of the wider 'contracting out' industry.

Other questions that arise is, has the bank already likely legally sold the house to the asset company (and washed its hands of it) - leaving it to the asset managment company to try and make a profit? If the house hasnt sold after 6+ months will it become a liability to the company (time is money and all that jazz)? Will it still go to auction?

Questions questions questions.

Edited by anonguest

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Other questions that arise is, has the bank already likely legally sold the house to the asset company (and washed its hands of it) - leaving it to the asset managment company to try and make a profit?

Most unlikey. This would mean paying stamp duty (and other costs) on the sale.

The Management co are probably just manageing the process of disposing of the property,

tim

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I posted yesterday about a repossessed house that curiously, to me, was not being sold by the lending institution (Brittania) BUT by (via?) an intermediary company. The house is marketed by a local EA.

EA confirms details to me on the phone this morning that:

The company in question is an asset managment company, AMG Asset Managment.

and that the EA have no interest in the property (other than their normal sales commission of course).

Have had a quick look at their website and it looks legit. Original question remains as to whether, previously unknown to me, that this manner of selling off repossessed properties via such companies is more normal than I thought. I always assumed the banks have dedicated in house collections/repossessions departments to handle this - and presumably at lower cost?! Liasing with EAs and auction houses directly.

Maybe this is yet just another form of the wider 'contracting out' industry.

Other questions that arise is, has the bank already likely legally sold the house to the asset company (and washed its hands of it) - leaving it to the asset managment company to try and make a profit? If the house hasnt sold after 6+ months will it become a liability to the company (time is money and all that jazz)? Will it still go to auction?

Questions questions questions.

The asset management company may be a wholly owned subsidiary of the lending institution.

Banks are increasingly using this Enron style fiddle to hide their massive mortgage losses off balance sheet

Remember what happened to Enron once investors caught onto the fraud? Yet another reason why the current uptick in HPI is unsustainable,

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AMG ltd is a non trading company...a shell, formerly Wilmslow executive car hire, registered to Loxley House, Nottingham...Capital One Bank, a dealer in car loans and credit cards...cant see who they own yet.

Edited by Bloo Loo

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Tonnes of those properties on Eigroup seem to go through AMG. I figured it was something to do with Northern crock as they would probably the only ones who come close to HBOS, which seems to make up the bulk of the rest of the repossesions market.

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Tonnes of those properties on Eigroup seem to go through AMG. I figured it was something to do with Northern crock as they would probably the only ones who come close to HBOS, which seems to make up the bulk of the rest of the repossesions market.

Brittania bought Platform, the sub prime lenders, and Brittania were rescued by Co-op Bank. I would think Platform would have quite a few problems.

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AMG ltd is a non trading company...a shell, formerly Wilmslow executive car hire, registered to Loxley House, Nottingham...Capital One Bank, a dealer in car loans and credit cards...cant see who they own yet.

wrong co - the one you are looking for is:

THE ASSET MANAGEMENT GROUP LIMITED

13-21 HIGH STREET

GUILDFORD

SURREY

GU1 3DG

Company No. 03292378

you can check out their website to see who they are and what they do - http://www.amgltd.co.uk/ourclients.html

nothing dodgy from the looks of things - just money for old rope - the messy side of repo's so banks and building societies can outsource it and not get their hands dirty

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Guest happy?
Brittania bought Platform, the sub prime lenders, and Brittania were rescued by Co-op Bank. I would think Platform would have quite a few problems.

Britannia were not rescued by the Co-Op bank it was a merger which was arranged 3 years ago (i.e. before the sub-prime fiasco) and required a separate act of Parliament.

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Used to be Marblehurst Limited, according to the Companies House website (free Webcheck)

http://wck2.companieshouse.gov.uk/89f88587...9e8/compdetails

I'm guessing that marblehurst was simply a shelf lts co bought for £50? anyone got companies house direct to see who the directors/shareholders are? I'm sure they are squeaky clean but I bet there are some individuals/companies here that crop up elsewhere in property - proper gold-plated property VIs

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From what i know this company (AMG) manages the properties for various banks / building societys. They are there on repo day to clean up, turn the water and power off, change locks, etc. If the place needs more attention they organise cleaning / decorating, etc, etc.

Banks own the property. EA's sell most of the stock.

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..... If the house hasnt sold after 6+ months will it become a liability to the company (time is money and all that jazz)? Will it still go to auction?

....

You still need to think interest rates.

Auction properties are fetching about 70% of the price they realise through an agent according to the latest news. Even on a modest flat that is 20-30 grand or so. The interest lost or gained (depending on which side of the equation you sit) even on a million pound property is virtually nothing over 6 months at current bank base rate.

Much better to sit it out (prices are going up and confidence is growing and things are looking better than earlier this year).

What, IMHO, is far more interesting (forgive the unintended pun) is what would (will?) happen if there is another downward shift and a loss of confidence. The perfectly rational strategy of sitting it out will become irrational. The need to sell quick becomes the rational strategy (the classic "panic" phase of the asset bubble).

The allegedly large number of properties held/marketed by these companies will come onto the market to catch the last few buyers as the price falls, thus increasing the downward pressure.

Viewed from that perspective the market is on a knife edge. I am sure the institutional sellers understand that too. They cannot afford to sell cheap as that devalues their entire portfolio. Far better to let the property stand empty or to rent it out than allow the entire asset class to fall in value. Ergo the more houses that are possessed the bigger the potential loss to the banks and the greater the incentive to hold the physical asset rather than the cash.

If, as suggested earlier in the thread, this device shifts the property off the balance sheet it is an even better strategy. So it is very unlikely that these management companies will allow the asset prices to fall. Bad news if you are looking for a bargain. The fire sale, if it happens at all, will be triggered by something other than lender possessions. Otherwise it will be a slow process of atrophy as real estate prices gradually return to an affordable level and the market "normalises".

I would like a fire sale as much as many people on here but don't hold your breath.

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You still need to think interest rates.

Auction properties are fetching about 70% of the price they realise through an agent according to the latest news. Even on a modest flat that is 20-30 grand or so. The interest lost or gained (depending on which side of the equation you sit) even on a million pound property is virtually nothing over 6 months at current bank base rate.

Much better to sit it out (prices are going up and confidence is growing and things are looking better than earlier this year).

What, IMHO, is far more interesting (forgive the unintended pun) is what would (will?) happen if there is another downward shift and a loss of confidence. The perfectly rational strategy of sitting it out will become irrational. The need to sell quick becomes the rational strategy (the classic "panic" phase of the asset bubble).

The allegedly large number of properties held/marketed by these companies will come onto the market to catch the last few buyers as the price falls, thus increasing the downward pressure.

Viewed from that perspective the market is on a knife edge. I am sure the institutional sellers understand that too. They cannot afford to sell cheap as that devalues their entire portfolio. Far better to let the property stand empty or to rent it out than allow the entire asset class to fall in value. Ergo the more houses that are possessed the bigger the potential loss to the banks and the greater the incentive to hold the physical asset rather than the cash.

If, as suggested earlier in the thread, this device shifts the property off the balance sheet it is an even better strategy. So it is very unlikely that these management companies will allow the asset prices to fall. Bad news if you are looking for a bargain. The fire sale, if it happens at all, will be triggered by something other than lender possessions. Otherwise it will be a slow process of atrophy as real estate prices gradually return to an affordable level and the market "normalises".

I would like a fire sale as much as many people on here but don't hold your breath.

this is 100% immoral...they have possessed from a defaulter, to sell and divi up the proceeds.

what they have done is bought the thing through a shell company, which pays the defaulter so he can pay the bank. the shell then sits on it and tries to make a profit for its principle...the bank.

this is fraud. there is no arms length dealings in this fraud. It shows the banks balance sheet as better than it was, so instead of a default, it now has an asset ( the Shell) which is free to profiteer from the defaulters misfortune.

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this is 100% immoral....

Its capitalism. If you don't like it there is always Cuba.

this is fraud...

No it isn't.

I would agree that fraud has taken place by the finance industry - the pensions "mis-selling" was an example and the pension companies fined for it. Equally I would agree that fraudulent lending occurred as a result of lies by both the borrowers and the sales people during the crazy feeding frenzy of 2005-2007. However, when the people who lied to buy or lied to take a nice holiday and buy an SUV find they cannot pay back the loan the lender is well within their rights to call in the collateral on that loan. The disposal of that collateral is the lenders business, not the borrowers.

If you want to buy a cheap house other people must lose money on theirs. Fact.

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You still need to think interest rates.

Auction properties are fetching about 70% of the price they realise through an agent according to the latest news. Even on a modest flat that is 20-30 grand or so. The interest lost or gained (depending on which side of the equation you sit) even on a million pound property is virtually nothing over 6 months at current bank base rate.

Much better to sit it out (prices are going up and confidence is growing and things are looking better than earlier this year).

What, IMHO, is far more interesting (forgive the unintended pun) is what would (will?) happen if there is another downward shift and a loss of confidence. The perfectly rational strategy of sitting it out will become irrational. The need to sell quick becomes the rational strategy (the classic "panic" phase of the asset bubble).

The allegedly large number of properties held/marketed by these companies will come onto the market to catch the last few buyers as the price falls, thus increasing the downward pressure.

Viewed from that perspective the market is on a knife edge. I am sure the institutional sellers understand that too. They cannot afford to sell cheap as that devalues their entire portfolio. Far better to let the property stand empty or to rent it out than allow the entire asset class to fall in value. Ergo the more houses that are possessed the bigger the potential loss to the banks and the greater the incentive to hold the physical asset rather than the cash.

If, as suggested earlier in the thread, this device shifts the property off the balance sheet it is an even better strategy. So it is very unlikely that these management companies will allow the asset prices to fall. Bad news if you are looking for a bargain. The fire sale, if it happens at all, will be triggered by something other than lender possessions. Otherwise it will be a slow process of atrophy as real estate prices gradually return to an affordable level and the market "normalises".

I would like a fire sale as much as many people on here but don't hold your breath.

Unfortunately spot on. Until the cost of money rises, if it does, the scenario you describe is the most realistic.

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Its capitalism. If you don't like it there is always Cuba.

It's not capitalism, it's cartelism. Banks and Insurance companies were forced into it to save themselves last year, with the blessing of TPTB.

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It's not capitalism, it's cartelism. Banks and Insurance companies were forced into it to save themselves last year, with the blessing of TPTB.

I think perhaps that it is corporatism, a variety of fascism, in which state and corporations combine,

Peter.

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http://www.amgltd.co.uk/assetmanagement.html

AMG are just a contractor who do the nuts and bolt work of taking a property into posession, managing and disposing of it for clients such as banks. Sensible to farm this work out to a specialist rather than employ a lot of extra staff short term.

Correct, i know someone who works there.

Getting busy again after the summer!!!

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wrong co - the one you are looking for is:

THE ASSET MANAGEMENT GROUP LIMITED

13-21 HIGH STREET

GUILDFORD

SURREY

GU1 3DG

Company No. 03292378

you can check out their website to see who they are and what they do - http://www.amgltd.co.uk/ourclients.html

nothing dodgy from the looks of things - just money for old rope - the messy side of repo's so banks and building societies can outsource it and not get their hands dirty

This is indeed correct.

Other than being a pain in the **** to deal with, they are what they say on the tin!

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This is indeed correct.

Other than being a pain in the **** to deal with, they are what they say on the tin!

Hey, they could use that quote on their website...

* AMG's proactive approach has produced excellent results

* Always get back to you when they say they will

* The relationship with AMG allows our staff to concentrate on other key areas

* Knowledgeable and efficient staff

* We have been very happy with the excellent service we have received from AMG

* The team have been very accommodating with ad hoc projects, the willingness to undertake these tasks at competitive fees and with no hassle has been a real help to our operation

* I regard AMG as the top performing asset manager overall

* A very good service. The staff are always ready to help and are very friendly

* Other than being a pain in the **** to deal with, they are what they say on the tin!

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The banks are/have set up subsidiaries to which they can sell portions of their repossession portfolio. There has been some debate as to whether this arrangement allows the bank to artificially establish a false valuation for these properties. I am not aware of the details so I cannot comment. However I see no other reason why this would be done other than to provide a way for the parent to improve it's balance sheet and capital ratio, one way or another.

The properties that AMG is dealing with may possibly be supplied via the bank property holding subsidiary, rather than the parent. This depends upon the asset management strategy of the bank. It could even be that AMG is involved in assessing which properties could fetch the best price in the market, so as to maximize asset valuations. I am sure that there is a great deal of financial engineering behind this activity.

I agree that the cost of money will determine the degree of pressure on the market. But this will be determined in the US, not in the UK.

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The banks are/have set up subsidiaries to which they can sell portions of their repossession portfolio. There has been some debate as to whether this arrangement allows the bank to artificially establish a false valuation for these properties. I am not aware of the details so I cannot comment. However I see no other reason why this would be done other than to provide a way for the parent to improve it's balance sheet and capital ratio, one way or another.

The properties that AMG is dealing with may possibly be supplied via the bank property holding subsidiary, rather than the parent. This depends upon the asset management strategy of the bank. It could even be that AMG is involved in assessing which properties could fetch the best price in the market, so as to maximize asset valuations. I am sure that there is a great deal of financial engineering behind this activity.

I agree that the cost of money will determine the degree of pressure on the market. But this will be determined in the US, not in the UK.

The Fraud is where the sale of the property is not done with an "arms length" attitude.

the banks say that the defaulter gets a better deal than if sold at Auction. well, they would say that wouldnt they.

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The Fraud is where the sale of the property is not done with an "arms length" attitude.

the banks say that the defaulter gets a better deal than if sold at Auction. well, they would say that wouldnt they.

As you are in Essex, you could try joining the local lodge to find out how they get round this.

I believe that prospective masons have to ask to discover the knowledge. Perhaps this is what it means? "Arms length" might be a sign.

p-o-p

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