http://epetitions.direct.gov.uk/petitions/30563Mortgage and Secured Lenders uses of LPA receivers
Responsible department: Her Majesty's Treasury
Despite the lowest interest rates and possibly one of the highest rental yields in history, buy to let property repossessions are still on the increase.
There is growing evidence that Mortgage lenders are using past breaches of terms and conditons of the mortgage loans to appoint LPA receivers where arrangements are being honoured by borrowers. In many cases, the receiver actions which included sale of assets at sizeable devaluations, caused heavy financial losses and in some instances resulted in bankruptcy.
I propose that-
1) Mortgage and Secured Lenders cannot instruct LPA receivers without a court order. A judge should be the independent authority who can decide if indeed there was a breach of the terms and conditions of the mortgage.
2) Once a LPA receiver is instructed, they cannot dispose of assets without a court order. This is to prevent the deliberate sale of an asset where the rental return will eventually settle any arrears in the short term.