We reported in a recent blog about zombie landlords, and the fact that it wouldnâ€™t be too long before banks began to increase their mortgage interest rates. Well, as expected, they have risen again and for some, this could stretch their finances to breaking point.
A report out last week from the Council of Mortgage of Lenders stated that a total of 9,600 homes were repossessed in the first three months of 2012. Some people out there (who seem to like criticising anybody who actually does something) have been complaining that The House Crowd is immoral to be profiting from people who have had their house repossessed.
To which we reply ‘what utter tosh’.
Without getting into the morality of whether it is justifiable to repossess a property in a particular case, the fact is the repossession is nothing to do with us; or anyone engaged in property investment, we only become involved months after the mortgagee has repossessed the property and have no part in the decision to evict. Â What we do is simply buy the property by paying more than anyone else is prepared to pay (every repossessed property that is sold has to go through a public notice period so the bank can obtain the best possible price).
I am not sure what perverse rationale these people use to claim that we are immoral (I think they just hate any property investor or buy to let landlord); would they seriously prefer the repossessed property just stands empty and deteriorates rather than us refurbishing it and providing a good quality home Â for someone who needs it else.
Oh and god forbid we make a profit out of it – how immoral would that be?Â I don’t now what planet these people live on but I’m glad I don’t live there. I bet it’s miserable.