By John Matthews – Repossession Stoppers
Owning a house is considered to be one of the biggest financial investments in your life. In recent years, prices of property in the United Kingdom have increased substantially. Due to this, the number of people unable to pay their mortgage in time has also increased. Property maintenance costs can also quickly add up. In fact, such costs can consume a huge percentage of your monthly budget.
As a result, a lot of homeowners are forced to consider the possibility of house repossession. It can be a very serious consequence. In case you are struggling to make a lease or loan payment, there are some things you should know about house repossession.
You also need to use some effective tips to avoid house repossession.
What is Repossession?
There are two different kinds of repossession – involuntary and voluntary. It is important to consider that any kind of repossession, whether involuntary or voluntary, will significantly affect your credit. In addition to this, the derogatory notation remains on the credit bureau file for several years. When it is an involuntary repossession, your home is repossessed and you are responsible for covering the balance amount with repossession.
When it comes to voluntary house repossession, which is voluntarily returning the keys to your house, you can save some money on collection fees. The primary reason is that the lender does not arrange for your home to be repossessed. However, your obligations may still not end after your home is repossessed. Once your home is repossessed, the lender will be likely to sell the house to the highest bidder.
In case the selling price isn’t sufficient to pay the balance amount and legal fees is incurred, there will definitely be a remaining deficiency balance. You along with the co-signer are obligated to pay the deficiency balance. If you don’t pay the balance amount, the lender can sue you and even take you to court.
How to Avoid Repossession?
Avoiding repossession turns out to be a lot easier than disputing the process afterwards. In case you’re unable to make a payment in time, it’s important to contact the lender immediately. A lot of creditors have specific programs in place to help people noticing temporary setbacks. If you’re able to successfully negotiate a different schedule for payments with the creditor, don’t forget to get all the terms in writing to avoid miscommunication.
It’s worth mentioning that co-signers are also responsible. In case you have a co-signer, and your house goes back as repossession, it will appear on your co-signer’s credit report. In addition to this, the co-signer will also be legally responsible for paying the remaining balance amount.
It’s important to understand that the price of house repossession is quite expensive. Therefore, it’s better to exhaust all feasible options before you allow repossession. A lot of creditors offer hardship programs to help homeowners experience temporary setbacks. For instance, a lender may grant you an extension. This means that you’ll be able to pay the due amount by the end of your loan period. Another good option is for the lender to rewrite the loan to reduce monthly payments. Here are some useful tips to avoid repossession.
· Keep yourself aware about the repossession problem.
· When you realize there’s a problem in paying your mortgage payments, consult your lender honestly and openly.
· Always think proactively. In case you’ve never missed your mortgage payments, but think you might miss one in future, your lender will be able to help.
In case you consider the above advice, and take necessary precautions, you won’t be evicted from the house. However, when you’re already deep in debt and struggle to pay mortgage debts, it’s important to act immediately.
You need to understand that it’s never late to consult your lender about any financial problems you might be experiencing. You can even seek help from Government agencies about mortgage payments for struggling home owners.
In case you’re still experiencing any problems related to house repossession, an effective option is to get in touch with a property buyer and sell the house fast. After selling your house, you can even rent it back.
There are a lot of companies that deal with property buyers throughout the United Kingdom. In case you choose to sell your house fast, you should consult them to seek repossession help. You can also search for more information online.