Bank sold your property for less than it’s worth?

I’m seeing a good number of customers of the banks complaining that their assets have been seized and sold at a massive undervalue, often leaving them with a personal guarantee liability that could lead to them losing everything.

Why is that?

Is it just because of where we are in the recovery/recession? Are the banks merely taking the opportunity, as they always do at the end of recessions, to reduce their loan books by selling out at a time they, but their customers don’t, consider to be optimum?  Or is there a concerted land grab going on? Are the banks really not best set up to, or interested in, maximising realisations?  Are the people that come to see me the victim of the negligent actions of a few?  Are some individuals within the banks acting fraudulently to feather their own nests or those of preferred clients/contacts?

All these views have been expressed to me and more… exactly where the truth lies differs from bank to bank, department to department.  Suffice to say there is a growing number of former clients of the banks who tend towards the blacker views…

It’s clear to me that the banks are flexing their commercial muscle and ‘burying’ many claims for having (at least allegedly) sold assets at an undervalue.  You see it’s really not very easy for anyone, however knowledgeable they are in the law and resources they have, to take the banks on.  The banks will wheel out their tame, (very) expensive, and (very) experienced legal eagles – I say tame because they do the banks bidding without any exploration as to whether their arguments have any legal or moral foundation.  The banks have simply bought them to cover up their malpractice.

What I’ve seen several times recently could potentially be attributed to mere incompetence.  5 years on from the start of the recession, the banks have been holding on to a lot of property, in one way or another, for a long time, longer than they want.  Unable to sell it until now, they’re now shifting far more property.  But what they are not doing is:

  1. Casting a fresh pair of eyes over cases.  Old mistakes are being perpetuated.  There’s no vision.
  2. Getting a fresh agents’ report advising on how best, at this time, in these market conditions, to expose the property to the market.  They’re adopting a tick box  approach more appropriate for an earlier time.  If they marketed it previously, they’re relying on that.

Let me give you an example of one case I am working on right now.  In the 3 or so years between the bank’s repossession and ultimate sale of a piece of land, some laws changed and the market for development land in the area improved massively.  My client’s property turned out to be a ransom strip, holding up a £30m residential development, making it very valuable indeed on a Stokes v Cambridge basis.  The bank had even failed to heed their own agents’ advice to investigate the possibility of the land being a ransom strip.  They’d sold it as a piece of pretty useless land yet still chased the personal guarantors for their alleged ‘losses’ – had they sold the land for what it was really worth my client would have had a serious amount of money handed to him, there would have been no loss.   Negligent? Fraudulent?  Whatever it proves to be, it is actionable, although the bank will fight us every step of the way.

My advice?

Be prepared for a long fight – the bank will not give way unless forced to do so in court.

You can expect judges to give you every chance to present your case.  It is almost as if they have seen a lot of other similar cases to yours and are driven to see justice done for you, the small man.  Do your best to present your case properly, backed up by lots of hard evidence – after all you can expect the banks to best present their own position and you need to prove they were somehow lacking.

Expect the fight to be costly in money terms.  Your lawyers, agents and other experts will be expensive.  And if you lose you can expect the bank to seek costs against you – and that will be at their lawyers’ extortionate rates, meaning you not only pay your own costs, but also a good proportion of the other side’s.

Expect the bank to play the giant’s role in your David v Goliath fight.  They will use every trick in the book to bully you into giving up the fight.  They will try to wear you down over time.  They have systems to take care of things, to manage the litigation, but for you it’s personal and there is no escape.  You’ll not sleep properly, this will be a constant worry.  To win you will need to be resilient and in good health.

If you’d like some help fighting a bank, I’d be delighted to help… just call or email me.

Bank sold your property for less than it's worth?

I’m seeing a good number of customers of the banks complaining that their assets have been seized and sold at a massive undervalue, often leaving them with a personal guarantee liability that could lead to them losing everything.

Why is that?

Is it just because of where we are in the recovery/recession? Are the banks merely taking the opportunity, as they always do at the end of recessions, to reduce their loan books by selling out at a time they, but their customers don’t, consider to be optimum?  Or is there a concerted land grab going on? Are the banks really not best set up to, or interested in, maximising realisations?  Are the people that come to see me the victim of the negligent actions of a few?  Are some individuals within the banks acting fraudulently to feather their own nests or those of preferred clients/contacts?

All these views have been expressed to me and more… exactly where the truth lies differs from bank to bank, department to department.  Suffice to say there is a growing number of former clients of the banks who tend towards the blacker views…

It’s clear to me that the banks are flexing their commercial muscle and ‘burying’ many claims for having (at least allegedly) sold assets at an undervalue.  You see it’s really not very easy for anyone, however knowledgeable they are in the law and resources they have, to take the banks on.  The banks will wheel out their tame, (very) expensive, and (very) experienced legal eagles – I say tame because they do the banks bidding without any exploration as to whether their arguments have any legal or moral foundation.  The banks have simply bought them to cover up their malpractice.

What I’ve seen several times recently could potentially be attributed to mere incompetence.  5 years on from the start of the recession, the banks have been holding on to a lot of property, in one way or another, for a long time, longer than they want.  Unable to sell it until now, they’re now shifting far more property.  But what they are not doing is:

  1. Casting a fresh pair of eyes over cases.  Old mistakes are being perpetuated.  There’s no vision.
  2. Getting a fresh agents’ report advising on how best, at this time, in these market conditions, to expose the property to the market.  They’re adopting a tick box  approach more appropriate for an earlier time.  If they marketed it previously, they’re relying on that.

Let me give you an example of one case I am working on right now.  In the 3 or so years between the bank’s repossession and ultimate sale of a piece of land, some laws changed and the market for development land in the area improved massively.  My client’s property turned out to be a ransom strip, holding up a £30m residential development, making it very valuable indeed on a Stokes v Cambridge basis.  The bank had even failed to heed their own agents’ advice to investigate the possibility of the land being a ransom strip.  They’d sold it as a piece of pretty useless land yet still chased the personal guarantors for their alleged ‘losses’ – had they sold the land for what it was really worth my client would have had a serious amount of money handed to him, there would have been no loss.   Negligent? Fraudulent?  Whatever it proves to be, it is actionable, although the bank will fight us every step of the way.

My advice?

Be prepared for a long fight – the bank will not give way unless forced to do so in court.

You can expect judges to give you every chance to present your case.  It is almost as if they have seen a lot of other similar cases to yours and are driven to see justice done for you, the small man.  Do your best to present your case properly, backed up by lots of hard evidence – after all you can expect the banks to best present their own position and you need to prove they were somehow lacking.

Expect the fight to be costly in money terms.  Your lawyers, agents and other experts will be expensive.  And if you lose you can expect the bank to seek costs against you – and that will be at their lawyers’ extortionate rates, meaning you not only pay your own costs, but also a good proportion of the other side’s.

Expect the bank to play the giant’s role in your David v Goliath fight.  They will use every trick in the book to bully you into giving up the fight.  They will try to wear you down over time.  They have systems to take care of things, to manage the litigation, but for you it’s personal and there is no escape.  You’ll not sleep properly, this will be a constant worry.  To win you will need to be resilient and in good health.

If you’d like some help fighting a bank, I’d be delighted to help… just call or email me.

Business Opportunities list 8 October 2014

 

Welcome to our latest business opportunities listing:

Brad Sugars’ Free seminar in Birmingham

Brad Sugars the founder of Actioncoach is coming to the UK on tour and will be at the National Motorcycle Museum in Birmingham on 21 October. To book in go to www.buyingcustomers.com and to get to attend free use the promo code FREE4ME.

Here’s what Andy Hemming of Actioncoach has to say – ‘If you’re tired of listening to people telling you they can help grow your business when THEY haven’t even grown their own business – then you must attend this event.”

Investor sought in prime Sri Lankan land (10/01)

The owners of the freehold of 3 acres of prime land, fronting the beach (450 metres of beach), in Wadduwa, about 40km South of the capital, Columbo – (unaffected by Sunamis) are seeking an investor – £300k – to part fund the building of a holiday complex.

Vixen Jetair VM36T  Cabinet Blasting machine for sale (10/02)

With 4 cartridge dust extractor, date of manufacture – 2008, commisssioning use only due to customer cancelled order, at point of sale, about £12k new, can be seen operational, for sale. Midlands located. Sensible offers invited. Immediately available.

Production Director Sought (10/03)

Staffordshire based manufacturing company seeks an experienced production director. Must be a rottweiler who takes no prisoners. Even better if he/she has money to put into the business. Immediate start preferred.

Manufacturing Companies Sought (10/04)

I have been approached by a good number of individuals, companies and groups who are looking to acquire Midlands based manufacturing / engineering / fabrication businesses. If you have one to sell, or you just want out, please let me know.

Asset Disposal (10/05)

On my tours around the Black Country I never fail to be amazed by all the cash companies are sitting on or wasting by holding on to older, surplus, or redundant machinery they never use. I am now a partner in an asset disposal business that will turn that piece of junk – at least it is to you – into cash, and in doing so free up valuable space. Just call me if you or anyone you know is in this position.

*FREE Event for Young Chartered Accountants (ICAEW)!

The Wolverhampton Society of the ICAEW is inviting young – i.e. trainee and recently qualified members – to a Young Members night at the Darts at the Civic Hall in Wolverhampton, on 13 November. Click here to book in. Alternatively, give me a call. And yes, it’s virtually free! (pay £10 for a £25 ticket and get 2 free drinks – who says you cannot get anything out of an accountant – see you there!)

How it works…

You pass this mailer around to people you know, either by email or using the social share buttons. You or they email me with any interest – paul@midlandsbusinessrecovery.co.uk. I put you in touch, you negotiate direct. If a deal gets completed I get paid an introductory fee by the other party, there’s no cost to you. These circulars are sent once, and once only – if you miss a mailer, you’ve missed the opportunity!
Paul Brindley
Licensed insolvency practitioner
Midlands Business Recovery
Tel 01902 672323

Business Resuscitation Opportunities 16 January 2013

Who do you know who may be interested in these?

Travel insurance (01/01)

Travel insurance quoting and back office mechanism with health scoring and fully SEO ready website for sale. It integrates the whole process from quotation through into your own accountancy, reporting and claim management functions, with no human input. The mechanism can support quoting in an unlimited number of domain names with a white labelling facility and multi-layer mark-up. Ideal purchaser could be a major insurance company, underwriter or broker. Offers in excess of £250k sought, with ongoing share of income in return for continuing support.

Kip’s eco-consortium! (01/02)

Kip is looking to raise money for several environmental projects including:

UK tidal energy – investors up to 60m Euros
Indian wind farm – investors up to $300m

Consortium being put together.

Band seeks funding (01/03)

Band who play major international music festivals and venues, established for 20 years and with a new line up, whose music has been used on several films and computer games, seeks £100k to fund completion of its latest album and show production. Could suit a sponsor looking to develop its own brands in the Asian markets, or just an investor.

Successor solicitor practice sought (01/04)

Retiring solicitor specialising in residential and commercial property in the Black Country and wider West Midlands seeks successor firm to take on his caseload, consultancy arrangement sought.

Digital signage (01/05)

East Mids based digital signage company seeks multi million pound backer to support the business through the procurement of large contracts with blue chip customers.

Interior fit out business (01/06)

Profitable, expanding commercial and retail interior fit out business is looking to merge or acquire similar business of about the same size -three quarters of a million turnover.

Non food retail (01/07)

An experienced venture capital company is looking to acquire distressed retailers, turnover £10m-£50m, before they go into administration. Substantial discount to net asset value expected.

Dealer offers car parts and other items for sale (01/08)

Brand new Toyota / Daihatsu parts – Market Value £0.8m, OIRO £75k
Folding canvas bags for external markets- 74,000 pieces for £12k
Internal domestic doors – 3,500 pieces for £28k
Ladies sandals and shoes – £1.25 to £2.50 per item

As usual, if you or anyone you know is interested in any of these opportunities, just e-mail me at paul@midlandsbusinessrecovery.co.uk. Click here to do so.

If you don’t yet know how my Business Resuscitation Programme works, give me a call, I’ll be glad to explain it. Or if you know of a business that is struggling, why on earth wouldn’t they try finding a solution through my Business Resuscitation work?

Paul Brindley
Midlands Business Recovery

‘The local insolvency practice offering real solutions’