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The Knimbies who say No

Repo Iva Couple Unhappy With Valuation

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Nicked from the front page via the Staffordshire Sentinel.

It's the old story: Boy meets girl, girl meets MEW, boy meets MEW. Boy meets P45. House meets Bank.

There are some irregularities here though, the house is 8 Adams Avenue, Tunstall ST6 5PE, but no sale data for the house exists in the LR to match the owners' claim they paid £130,000 in late 2008(this is far above any sold price in the street on the LR). Their MEW habit had taken them to £45k of loans (presumably secured given the amount). They state they have a £118k mortgage plus the loans, £163k of debt on a house now marketed for a touch under £80k ( http://www.rightmove.co.uk/property-for-sale/property-29196304.html ). I guess they actualy bought it a long time ago, hence why they have equiteee to splash on secured loans, although note that is speculation on my part.

Thing is, this is a 'voluntary repo' but look at the state of the place, seems they've taken carpets with them. Hardly going to show the place in the best light to potential buyers is it? Seems a bit rich to try and stick it to RBS for the valuation, it's been on since early March and it hasn't sold yet, such a giveaway that it is. A quick squizz at the houses in the area seems to make me think the valuation is at best 'fair', not a giveaway by any stretch. The couple appear to have joined the 'learning the hard way' club, shame about the children being caught up in this due to their parents' spending. The UK taxpayer to the rescue. FFS!

http://www.thisisstaffordshire.co.uk/news/Couple-s-anger-unfair-house-price/article-3414605-detail/article.html

A DEBT-STRICKEN couple say a bank's repossession of their home is driving them into even deeper financial straits.

Young parents Jennifer and Jamie Barlow are accusing Royal Bank of Scotland of undervaluing their house, which they were forced to leave last year, by tens of thousands of pounds.

They paid £130,000, with the help of a £118,000 mortgage, for the semi-detached Tunstall property in December 2008. The house is currently on the market for just £79,950.

The couple, who have two young children, also believe the bank failed to provide them with the correct advice.

RBS insists it has followed the correct procedure and says the valuation is fair.

But the Barlows are now planning to complain to the Financial Ombudsman Service.

Admin worker Mrs Barlow, aged 35, said: "RBS valued our property at £130,000 two years ago, but now they're saying it's worth £79,000.

"One of them must be wrong. Property prices have fallen, but not by 50 per cent.

"Our neighbour has just had his house valued at £118,000, which is a fair price. We're not looking to make money from this, we just don't want our situation to get even worse

...CONTINUES

http://www.thisisstaffordshire.co.uk/news/Couple-s-anger-unfair-house-price/article-3414605-detail/article.html

Edited by cheeznbreed

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It's the old story: Boy meets girl, girl meets MEW, boy meets MEW. Boy meets P45. House meets Bank.

:lol:

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Admin worker Mrs Barlow, aged 35, said: "RBS valued our property at £130,000 two years ago, but now they're saying it's worth £79,000.

"One of them must be wrong. Property prices have fallen, but not by 50 per cent.

They have now.

Edited by GordonBrownSpentMyFuture

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"Our neighbour has just had his house valued at £118,000, which is a fair price. We're not looking to make money from this, we just don't want our situation to get even worse"

Idiots they've already had £45k for nothing what more do they want!

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"Our neighbour has just had his house valued at £118,000, which is a fair price. We're not looking to make money from this, we just don't want our situation to get even worse"

Idiots they've already had £45k for nothing what more do they want!

Their neighbour's valuation is such a fair price that no-one has bought theirs for £40k less. I love the 'not looking to make money' bit, all they're after is for some mug to take their loans off them. Seems reasonable, eh?

The sense of entitlement is strong in this pair, although I'm glad it's splashed all over the local papers. Hopefully a few people will realise that as a buyer you are often expected to cover the cost of f*ckwits' lifestyle choices.

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Great bear food here, im filling my belly till its just about to explode with a carnage laughter... here we go..

Haaaaaaaaaaaaa, oh, haaaaaaa, ha m, ha Ha,ha ,Haa owww, ow Haaaa

These people are priceless, i sure hope this kinda story becomes main stream soon.

Yes, im being bloody awefull, its terrible isnt it, not having any compassion whatsover,

This is Payback time..

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Three thoughts.

1. If this woman is correct in implying that the typical sale price of this sort of place in this sort of area has until now been around the £120k mark, then by putting her house on the market at £80k, the bank has, by setting the precedent, just lowered house prices in this part of Stoke-on-Trent by a third. Obviously, anyone now looking to buy that sort of house in that sort of area is now going to be looking at Shitemove, the Land Registry and other such sites, and considering this price to be the ceiling.

2. From the pics, this place looks like it needs substantial work doing to it. The walls are dirty and pockmarked, there's some mould on the bathroom tiling grout and so on. Presumably this will be reflected in any offer made, thus reducing the price further.

3. If this place has been on the market for any significant length of time and still not sold at £80k, then £80k is obviously an optimistic price, not a pessimistic one, as its former owner is claiming.

Edited by The Ayatollah Buggeri

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The couple mistakenly think that if an EA values a house as £x, that is a "fact"....

As RBS pointed out....

"The bank cannot take this into consideration as the property was not sold at that price, and the bank can only take into consideration amounts where a property has been sold.

:)

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Three thoughts.

1. If this woman is correct in implying that the typical sale price of this sort of place in this sort of area has until now been around the £120k mark, then by putting her house on the market at £80k, the bank has, by setting the precedent, just lowered house prices in this part of Stoke-on-Trent by a third. Obviously, anyone now looking to buy that sort of house in that sort of area is now going to be looking at Shitemove, the Land Registry and other such sites, and considering this price to be the ceiling.

2. From the pics, this place looks like it needs substantial work doing to it. The walls are dirty and pockmarked, there's some mould on the bathroom tiling grout and so on. Presumably this will be reflected in any offer made, thus reducing the price further.

3. If this place has been on the market for any significant length of time and still not sold at £80k, then £80k is obviously an optimistic price, not a pessimistic one, as its former owner is claiming.

they are still the owner.

I am surprised the bank hasnt sold it to a shell firm for £200K, handed the young couple £50K for their trouble and having the shell charge £1400 pcm to a renter.

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"We want a good price for the house not just for our own sake, but it will mean that the bank get their money back as well."

Surely if the house is worth more than £80K they will get plenty of interest and get offers above asking. :rolleyes:

If anything the asking price is more than they will get offered. Any buyer would probably only want to spend £70K or less.

It beggars belief that people think just because they ask for an amount they will get it. You can only get as much as someone is prepared to pay. And then you take it or leave it.

Repossessions will be a wake up call to those who need to sell to pay their debts. Because once they start, it becomes very hard to sell.

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3. If this place has been on the market for any significant length of time and still not sold at £80k, then £80k is obviously an optimistic price, not a pessimistic one, as its former owner is claiming.

+1

The public haven't yet come to terms with the fact property value is determined by what people are willing to pay and not what a bank is willing to lend.

Edited by Blod

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The public haven't yet come to terms with the fact property value is determined by what people are willing to pay and not what a bank is will to lend.

Hope you haven't copyrighted that sentence - I'd like to use it in as many conversations as possible... even to people in the street who ask me what time it is

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All of a sudden, I like banks.

hmm, indeed, seems the 'gloves are off' and I hope the trend continues as there are shedloads of 'non-performing' mortgages around just waiting to be sold. I imagine this pair were paying vitually nil towards the mortgage so the bank has an easy decision in that they will get nothing unless they sell it. I'll be interested to see how long it takes to sell as I do not think it's a giveaway at £80k by any means.

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But last February Mr Barlow, also aged 35, had to quit his job as a freelance car salesman because the terms of an individual voluntary arrangement they had taken on after getting into debt stops people from working in the finance sector.

Interesting if true. I guess he's considered to be "working in the finance sector" as he's freelance and part of his job will likely be arranging financial things like loans for cars and car insurance etc.

The financial sector capture spreads ever wider - apparently even to car sales people now.

Couldn't he just go on the payroll as PAYE or is freelance now getting obligatory in car sales and indeed in other sales like furnishings etc.

It doesn't necessarily mean that they're going to be any different/better/worse in their sales dealings but effectively it means they've got to keep paying their debts or lose their job. Effectively captured!

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The couple mistakenly think that if an EA values a house as £x, that is a "fact"....

As RBS pointed out....

"The bank cannot take this into consideration as the property was not sold at that price, and the bank can only take into consideration amounts where a property has been sold.

:)

It must ve been sold (or mortgaged) at some value - what was that?

Also I can see the cunning trick with the banks here - if house prices fall they won't mark to market as they'll simply say - it used to be worth £200k so our mortgage is based on that valuation- hides the losses!

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property value is determined by what people are willing to pay and not what a bank is willing to lend.

EAs often have a problem with this concept. They seem to believe that because a bank will lend you £200K that you will borrow £200K. Last year I had to prove I had the finances in place when I offered on a property, so I ended up having to show them my mortgage in principle. The reaction seemed to be you could afford to buy more than this....

The biggest problem with making any sort of offer is you show your hand and then the agent thinks you will make the same offer elsewhere. Suddenly they were calling about properties at higher levels. :rolleyes:

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Interesting if true. I guess he's considered to be "working in the finance sector" as he's freelance and part of his job will likely be arranging financial things like loans for cars and car insurance etc.

The financial sector capture spreads ever wider - apparently even to car sales people now.

Couldn't he just go on the payroll as PAYE or is freelance now getting obligatory in car sales and indeed in other sales like furnishings etc.

It doesn't necessarily mean that they're going to be any different/better/worse in their sales dealings but effectively it means they've got to keep paying their debts or lose their job. Effectively captured!

Indeed. This whole sorry situation reminded me of a blog post from 2008. Not for the easily offended.

http://www.oldholborn.net/2008/09/dear-labour-voters.html

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Interesting if true. I guess he's considered to be "working in the finance sector" as he's freelance and part of his job will likely be arranging financial things like loans for cars and car insurance etc.

The financial sector capture spreads ever wider - apparently even to car sales people now.

Couldn't he just go on the payroll as PAYE or is freelance now getting obligatory in car sales and indeed in other sales like furnishings etc.

It doesn't necessarily mean that they're going to be any different/better/worse in their sales dealings but effectively it means they've got to keep paying their debts or lose their job. Effectively captured!

I wonder if, in arranging the IVA, he told lenders and creditors he could no longer work if entering an arrangement.

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EAs often have a problem with this concept. They seem to believe that because a bank will lend you £200K that you will borrow £200K. Last year I had to prove I had the finances in place when I offered on a property, so I ended up having to show them my mortgage in principle. The reaction seemed to be you could afford to buy more than this....

The biggest problem with making any sort of offer is you show your hand and then the agent thinks you will make the same offer elsewhere. Suddenly they were calling about properties at higher levels. :rolleyes:

+1

While ago a relative bought with cash and was constantly shocked at how EAs seem to only be able to accept the word of a bank mortgage offer. Their mode of operating was to try to insure that the full mortgage offer would be always used and didn't really like they fact that he was a cash buyer. In the end he bought at auction as it was better value and also less hassle than dealing with EAs.

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Great bear food here, im filling my belly till its just about to explode with a carnage laughter... here we go..

Haaaaaaaaaaaaa, oh, haaaaaaa, ha m, ha Ha,ha ,Haa owww, ow Haaaa

These people are priceless, i sure hope this kinda story becomes main stream soon.

Yes, im being bloody awefull, its terrible isnt it, not having any compassion whatsover,

This is Payback time..

It will be mainstream news in Staffordshire, this is going to freak a lot ot the stupids out.

Bearfood !

Also, relative to the totally saturated market there, the price is reasonable.

Something like 1250 properties looking for a buyer at or under £110,000 on Rightmove.in Stoke.

No No it simply must be worth yada yada because thats what we were stupid enough to pay :lol:

Edited by bricor mortis

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Just as Oliver Letwin and his Tory Toff mates want northerners (and presumably midlanders too) to be kettled in their home regions and not to be able to easily go on holidays overseas - ie a reversion to the pre aviation/regional airports boom years of the past 30 years, it seems that fate and the markets will also be forcing an unwanted reversion of these same areas to what they were pre-massive labour injections of borrowed cash into their economies, accompanied by massive bank injections of cash/credit into their people's pockets too. I.e.:

dumps. Grimy, gritty, grim, with no work, no hope, only grey, miserable estates and crime ridden closed down shopping centres, occupied by obese pram pushing smoking chavs.

Anyone fancy a move to Stoke now folks, am I selling it to you?

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Admin worker Mrs Barlow, aged 35, said: "RBS valued our property at £130,000 two years ago, but now they're saying it's worth £79,000.

Disbelief, yet oddly enough, if it had doubled in value to 260K in 2 years they would have thought this was perfectly rational. This is the problem that banks, politicians, ministers and the property fixated public just cannot begin to understand.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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