2 May 2005
Realistation and recovery procedures should be tightened up in order to benefit lenders, say insolvency experts.
Edward Cook, turnaround and recovery partner at our Manchester office said despite major efforts by banks, building societies and other property lenders there is still some way to go in improving the system.
"The mortgage industry's common practice of cutting losses by arranging a distress property sale through an estate agent often delivers the poorest possible return to lenders."
"The recovery techniques used by many institutions are getting slicker - but there is still room for improvement. It's a complex, regulated area and considerable expertise is required. For example, looking into the reasons why the borrower is in difficulties and addressing the root problem rather than erecting a 'for sale' notice.
"It is important to balance the energy, effort and expenditure directed toward attracting new borrowers with the benefits of restructuring existing customers' arrangements," he added.
We have produced a booklet outlining the alternatives to the 'distress property sale', which is available without charge by contacting Edward Cook on 0161 236 6936.
For more information on our Manchester office visit our Offices area
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