Archive for June, 2011

Repossession rate is set to rise by 12.5% in 2012

Friday, June 17th, 2011

Repossession rate is still under control because mortgage rates are low. According to the Council of Mortgage Lenders (CML) the mortgage rate will continue to remain low in 2011. And then it will start to increase modestly in 2012. This will definitely have an impact on the number of house repossession all over the country; the repossession rate is likely to increase by 12.5% – that is what CML has predicted.

The repossession rate did not go beyond control because the mortgage rates were low; during the recession of 1991 higher number of people faced repossession compared to present statistics. Just imagine if mortgage rates start to increase in 2012, then situation may become really tough.

Many homeowners are still not feeling the tremor; but that does not mean they are safe! Once the mortgage rates go higher then the true picture will become visible. Once people realise that the plate is getting hotter they will start looking for a solution; perhaps they will try to sell their house fast to stop property repossession.

If thousands of people start selling their house suddenly, it is likely to create a disturbance in the market. There will be more sellers in the market than buyers; the demand and supply balance will get damaged making it tougher for the sellers to find a buyer.

You know that the easiest solution to stop home repossession is fast property sale; still you will not be able to achieve it because there is no buyer. This can be painful! How long can you wait for a buyer; your credit is on stake after all.

Stop Home Repossession with Cash Buyers

You can work with cash buyers and get rid of all the worries. Cash property buyers can help you sell your house quickly even when the market is down. With ready cash they can help you close the deal quickly.

Reputed cash buyers will pay you close to market value for your property. If you are planning to sell house today or in future, consider working with cash buyers.

It’s never too late to try to stop home repossession

Wednesday, June 8th, 2011

There are several things that you can do to stop home repossession. Here is a list of actions that you can take to protect your home from repossession.

Talk to your lender

As soon as you realise that you might miss your mortgage payments, talk to your lender. Lenders would always talk to you and help you in all possible ways so that you can avoid repossession and keep the home. No lender can take the borrowers to court if they do not complete the pre-action protocol. The lender has to help the borrower to pay the mortgage before taking them to court.

Once you contact your lender and let them know about your situation they must cooperate you in following ways:

  • Inform you how much you owe to them
  • Consider your repayment proposals if any
  • If they do not accept your payment proposals, they have to show you the reasons
  • If they decide to start legal actions against you, they have to give you 15 days notice

Lenders can help you in following ways:

  • Increase the loan terms so that monthly payment gets reduced
  • Agree to accept reduced payments for a short span of time
  • Adding the debts accrued due to non-payment of monthly instalments to the principle debt that you borrowed

However, to get such cooperation from your lender you have to do the following things:

  • Show them that you also want to pay the mortgage and you want to cooperate with them; never neglect any correspondence or phone calls from them
  • Pay as much as you can
  • Keep in touch with them
  • If the lender agrees to change the loan terms or agrees to accept reduced payment, then get it in writing

There is another alternative; you can sell your home fast.

Sell house fast to cash buyers

Cash buyers can help you to stop repossession by offering a quick sale. They are property investors; they can purchase your house for instant cash. You can use the money to clear your debts and keep your credit in good shape by avoiding repossession. Inform your lender that you are going to sell your home so that they do not start any legal proceedings against you.

There is a third option also; you can seek independent money advice from independent agencies such as Citizens Advice Bureau or Shelter. Take the right step and protect your credit from the stigma of repossession.