The Rock sells repossessed homes at knock down prices
Nationalised lender Northern Rock, which was nationalised earlier this year after becoming one of the first major victims of the global credit crunch in the UK, has been accused of selling off repossessed home at knock down prices in a bid to try and get back as much money as possible as quickly as possible rather than trying to get the best price for the former homeowner.
An investigation by a National UK newspaper revealed the processes that were being used at Northern Rock in order to get quick sales on repossessed properties, and the revelation came at a time when senior government officials are threatening to take action against lenders that are not more sympathetic and fair with borrowers that fall behind with their mortgage repayments.
It is claimed that the Rock has been offering up these homes to investors at huge discounts, offering large cash back sums using similar processes to the ones that helped to plunge the lender into crisis in 2007. Often the repossessed former homeowner is left deeply in debt according to the report, simply because the Rock is selling off these homes at such huge discounts, which does not bring in enough cash to cover the amount of the outstanding mortgage.
One property investor referred to a list of properties that he allegedly obtained from Northern Rock, stating: ‘Northern Rock just wanted to get rid of them. The prices were awesome. Very attractive. The Northern Rock list was at a 40 to 45% discount on the market. All they wanted to do was to clear their mortgage balance. So you had some real bargains in there.’
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