Update on Homes Repossessed
This recession has seen its fair share of people having their homes repossessed and the Council of Mortgage Lenders (CML) have predicated an increase of 20% on 2011 repossession figures. This brings the total number of homes repossessed this year to around 45,000 homes. The CML believe this is due to the tough economic conditions that are facing home owners as they struggle to hold on to their homes.
Homes Repossessed – Individual And Family Consequences
Families that have had their homes repossessed will have encountered many emotions and stresses worrying about their uncertain futures for them and their families. Added to this they may well have lost their jobs through redundancies or seen their businesses go into liquidation. But what ever has happened it will only be the beginning of their problems. They will have other challenges that they will need to deal with like:
- Not being able to buy another home to live in as mortgage lenders will not lend them any money to buy another home in the future.
- Having homes repossessed usually means that the person involved will have had visits from the bailiff who will have taken goods and chattels to pay any outstanding debts. This could mean that you will need to replace anything that you need for your new rented home.
- Discovering that your credit rating has been obliterated due to the court proceedings and having your home repossessed will result in you being unable to buy a new car or obtain any credit in the near future. If you do find a lender willing to lend you money then it will be at an extortionate rate of interest and best ignored.
- Finding a new home will be difficult as all landlords will conduct a credit search to see that you are credit worthy. Any credit search will identify anyone who has had their homes repossessed. It will be difficult to find a landlord willing to rent you a home. You will also need to find up to three months rent money to lodge with the landlord if they did accept you. There are landlords that will accept people who have had their homes repossessed, but they will have an inflated rental charge.
- Any homes repossessed by mortgage lenders could have money outstanding from the repossession sale of their home. The mortgage borrower is legally indebted to repay any money outstanding from the sale of their home. The UK regulations state that a mortgage lender has 12 year to contact anyone who’s had homes repossessed. They can then pursue them for any monies outstanding from the disposal of their home. The mortgage borrower can be pursued for the money until it is paid in full.
Homes Repossessed – An Alternative Solution
Well by now anyone who is facing having their homes repossessed will be searching for any alternative solutions. The first step in preventing a home being repossessed is to contact your finance lenders when you first find yourself struggling to pay your debts and mortgage repayments. In nearly all cases it is advisable to contact a debt management charity like, CCCS or PayPlan and take advice. Do not bury your head in the sand like an ostrich as you will live to regret the consequences of being ignorant of the facts very quickly
By talking to your mortgage lender and a debt management charity immediately you can possibly find a solution to your debt problems before they explode in your face. Failing to do this will result in your creditors and their bailiffs making decisions for you.
If you have equity in your home then it would be worth considering selling your home before it is repossessed, but not before taking advice. Mortgage lenders will always deduct all their costs for selling and dispersing of your repossessed home first before working out how much your still owe them. This means that most people will end up owing the mortgage lender money after the sale of their home. The mortgage lender will always look to sell your home as quickly as possible and for as much as they can get for it,
Unfortunately, in the current housing market you could struggle to sell your home quickly. There are businesses that buy homes that are awaiting repossession orders by the mortgage lenders and the courts. These companies are able to make a quick decision to offer someone a quick house sale. But before selling your home this way do take advice as it is a quick solution but you do need to know what you are doing.
If you are able to sell your home before it is repossessed then you can lessen some of the consequences mentioned above which would make it much easier to move on with your life. Homes repossessed can and do affect everybody involved and an alternative solution is worth looking at first.