Repossession Threat - Credit Problems - Relocation - Relationship Breakdown

While speaking to people at various events or network opportunities, every so often some one mentions about the increasing number of repossession, thanks to interest rates that have been creeping up slowly in the past year or so.

Recently some one mentioned, “do not why people let themselves into trouble”, he said,”I would just hand over the keys to the bank manager and save my credit history rather than going through repossession hell.”

Nice idea, only that this does not work in UK.

Many people I have spoken to often speak about the foreclosures and ‘how to buy these properties and also help people in trouble.’Unfortunately these people have been regarding far too many property books published for American audience. Foreclosure is a term used in the US. Law works differently in UK, and it refers to repossessions.

Same thing? Hardly!

Lets us talk about foreclosures versus repossessions first.

Myth 1: Foreclosures versus Repossessions

US housing lenders are allowed to apply to the court (and granted permission) to seize the house back, sell it and keep the whole proceeds. Normally court allows repossession but increasingly they are allowing foreclosures. This means that investors can buy the house from the company cheap and make a profit on by reselling it at full market price.

However in UK, companies are not allowed to seize the house. Courts allow them only to repossess the house to be sold at the fair market value, pay the owed amount (and expenses) from the proceeds and send the balance to the borrower.

The Building Societies Act 1997 directs companies to “take reasonable precautions to obtain the true market value of the mortgaged property.”

The true value of any property is often subjective - and depends on the opinion of a purchaser. So how can a mortgage company determine its true market value?

Auction is a route that many companies take.

However the mortgage company does not has to sell the property via auction to obtain the true market value. Courts generally accept this method as a determinant of fair value, but as long as a company can demonstrate, if questioned, that other methods were used, it is allowed.

Some companies sell the property via local estate agents without disclosing that he property is repossessed. By the way of like for like comparison, they can demonstrate that fair value was achieved.

Myth 2: Hand Over The Keys Myth
Many people believe that if they are struggling to keep up with paying the mortgage then handing over the keys to their bank manager will clear them of any further obligations of making payments - because they do not own the house, right?

Sadly this is far from the truth.

Mortgage company lends you the money (cash) and requires you to pay back the whole amount and interest in cash. If the company has to sell the house on your behalf then you are still liable for any interests incurred till all the dues are cleared.

Myth 3: Property repossession allows you to make a fresh start.
Only as long as all debts are cleared from the proceeds of your property!

If the proceeds from your property only pay back a part of the loan to your mortgage company then you are still liable to pay back the outstanding amount. These situations can happen if the property prices have crashed below the borrowing levels.

So if you are facing repossession threat then it is best to speak to some one competent about your situation. One advice is: do not ignore correspondence from your mortgage company. Second, get neutral advice as soon as you can. You do not always have to pay for the advice. Many free advice resources are listed on this link.

Remember,if property is sold via your lender (after repossession) then you not only become liable for further charges (e.g. bailiff etc), this also gets recorded against your credit score for future reference.

Many people prefer to sell the property to an investor who can buy the property fast. These investors can be located via doing a search on Internet, searching your local papers or speaking to those in the know.

About the Author:
Author is an experienced commentator and investor in the UK property market. You can sell and rent back your property if required. He can help any repossessions stopped. Go to site now (www.instantangels.com)

Money is a commodity often in short supply in life for most of us. Most people need a sudden and heavy dose of it especially when buying a house, buying a new car, holiday or paying children’s education etc. However for many people, money is required not to buy the house but to keep the roof above their children’s head.

That is where the sell and rent back comes in. The sell and rent back system (or SRB) is becoming prevalent in UK. It is an opportunity for the home owner to sell their house to a buyer (individual or company) and then rent it back. The rate if rent could be initially discounted (usually) or the market rate (rare). This means that the seller does not even have to pack their bags and move out of the house.

Life continues as normal. Only thing that changes is: money that was being paid out every month to a lender as a mortgage payment is now being paid out as rent. However the biggest positive is: it is often the reduced amount going out as rent because in most cases the rental going rate is drastically lower than the astronomical high sub-prime rates charged by the lender.

So what are the disadvantages of sell and rent back? Seller is unlikely to get full price for their house. This is because property is being bought as a commercial transaction and therefore trade prices are being paid. The buyer is also taking a commercial gamble against the sliding house prices and is not keen to take over some else’s problem (i.e. paying the mortgage) without hoping to make a profit in the end.

Clearly this solution is not best suited for every one. But judging from the sell and rent back transactions going through at the moment, and Office of Fair Trading’s (OFT) interest in this sector, there are enough people willing o sell their houses but stay in them too.

If you miss a payment, it is essential that you contact your lender and inform them immediately. Lenders are usually more open and willing to accept a payment plan. Here are other tips to avoid repossession.

1. Arrears - If miss a payment, it is essential that you contact your lender and inform them immediately. Lenders are usually more open and willing to accept a payment plan. However, if you have missed two payments, your lender is legally entitled to start the repossession process. This process starts with a simple letter demanding payment within Seven days.

2. Solicitor - If you don’t revert to your lender with an adequate payment proposal, the lender’s solicitor will initiate the repossession process with the courts. You will be informed by the solicitor in writing. It is essential that at this stage you revert to them one way or the other. Keeping silent will not deter the problem away but only make it worse.

3. Possession Order - If not resolved satisfactorily, their solicitor will go to court to seek a possession order. A hearing date will be set, which you Must attend. At this hearing, you will have the opportunity to explain yourself and come to an agreement with the Judge/Lender. You will be given the chance to pay back the arrears and retain your home so please ensure that you are well prepared and have a thorough payment proposal ready.

4. First Court Hearing - Most first hearings are adjourned in order to collect more information and give you an opportunity to come up with a viable payment solution. Repossession is viewed as a last resort and if you can negotiate a payment plan, then the judge will temporarily suspend the repossession order. However, it is to be noted that if you fail to keep to this repayment schedule, the lender can evict you without a court notice.

5. Second Court Hearing - If you have failed to negotiate a payment plan, a second court date is set where the possession order is issued. At the second hearing, the order can only be suspended if there is a positive change in circumstances e.g. changes in employment status / salary and/or purchaser for your house, etc. However, it is to be noted that the arrears has to be settled and the house Sold within Four Weeks. If your circumstances are as before and no agreement is reached between you and the lender, an eviction notice will be served, usually for 28 days after the hearing. Also, you may be ordered to pay the lenders legal fees as well as your own.

Guest Author: Mandip Singh
The Cash Property Buyers

[tags]Repossession, repossession guide, repossession help[/tags]

Mortgage repossession is a devastating thing. Having your home swept out from under you is not only a financial crisis. It can be an emotional one as well. In the UK, however, there is a piece of federal legislation that prevents mortgage repossession from actual making a person or family homeless. The law is called the Prevention of Homelessness Act, and protects residents of England and Northern Ireland.

It says that if a person or family occupies a dwelling and it is their principal and only home but becomes subject to mortgage repossession or any adversary tenant eviction proceedings, the court can suspend that eviction or mortgage repossession order to give that person or family time to find a reasonable alternative place to live.

The law says that the application may be made by the person who is subject to mortgage repossession or tenant eviction prior to that action being taken.

Where a person occupies the home as her, his or their only dwelling the court has the power to suspend the repossession or eviction enforcement for any period and under any conditions that the UK court sees fit to impose.

The criteria given the court for this mortgage repossession or tenant eviction protection is very lenient. In fact, it almost just says, “do what you think is right, judge.”

The legislation stipulates that a court can decide to suspend the repossession for mortgage arrears or eviction for unpaid rent to prevent the person or persons residing there from “sleeping rough” or having to live somewhere not reasonably fit for any habitation by humans.

The definition of mortgage repossession or landlord or tenant repossession proceedings is defined as litigation begun in a court of the United Kingdom by the lender or landlord for purposes of recovering possession of property that is occupied by the debtor or tenant as her or his main or sole residence.

One portion of this homelessness prevention bill talks about variable interest rates, and gives the court the power to actually change the rate of interest that the debtor is paying on the mortgage if that is a reasonable thing to do to prevent repossession and homelessness.

There are some stipulations built in, however. The rate of interest that the court alters the mortgage to cannot be less than that applied by the UK federal Department for Work and Pensions (must like Social Services and its Section H housing assistance in the U.S.)

The Prevention of Homelessness Act also allows the court to put into effect a waiver of charges and fees in the interest of trying to ward off a mortgage repossession. These fees waived could include legal and court costs including the expenses incurred by the debtor for an indemnity clause.

The legislation further stipulates that should someone become eligible for, and acquire public assistance, the payment of the mortgage, to prevent repossession might also be paid out of the public assistance check awarded, at the discretion of the court.

Clearly, in the UK, the government has seen fit to protect the interests of homeowners and tenants and assure that they keep their homes wherever and whenever possible.

Guest Author: James Copper works for Stop Repossession Today who help homeowners stop mortgage repossession and avoid repossession.

[tags]mortgage repossession,repossession order,debt,real estate,avoid repossession [/tags]

The UK housing market with the prices of houses dropping and last year’s mortgage interest rate rises has seen the most house repossessions in the last ten years. House repossession has got to be one of the most stressful times in someone’s life. If you get your house repossessed it does not necessarily mean it is all over once you get repossessed. What happens is the bank or lender that repossesses the house will sell the house of at auction well below market value. The money that they get from the proceeds of the sale is set against the debt that was owed to them in the first place. Example say your house is worth £120,000 that could sell at auction for about £80,000. If you owe the lender £100,000 the £20,000 difference is what the bank are entitled to chase you for. House repossession can stay on your credit file for 12 years. This could mean you have to wait 12 years before getting accepted by a lender for another mortgage. The worse bit is the £20,000 shortfall they can chase after for 12 tears as well.

If you are behind with your mortgage payments some lenders are foreclosing in as short a time as 3 months. So you need to be on the ball and fully armed if you are likely to get your house repossessed with things you can do. Below is a list of actions you should take straight away to stop house repossession.

1. Contact your lender and explain your are facing financial difficulty
2. Agree to pay of the arrears over a period of time
3. Keep all future payments up to date
4. Contact a Sell House Rent Back Company to see if is cheaper to sell and rent back; and ask if they can give legal advice to stop repossession
5. If you are given a court order you must go and attend the court and explain your circumstances, do not avoid going to the court as they will definitely favour the side of the bank if you do not attend.
6. If the court issue an eviction date ask for more time to sell the property if you pay of the arrears.
7. Courts will want to see you trying to pay the lender and not hiding from the debt
8. Contact local housing to re house you if your repossessed
9. Stay calm and see advice from citizens advice
10. Try and do a deal with a sell house rent back company to stop house repossession.

There are some good sell and rent back companies out there. One of the good ones, Instant Angels specialises in sell house and rent back sector. They are based in the South East of England but buy property from all over the UK. So if you need to stop house repossession they will be able to give some free advice on how to go about it all as they help many homeowners stay in their property ever year and have been specialize in the house repossession field for quite a long time.

[tags]house repossession, stop house repossession, sell house rent back, sell house fast[/tags]

If your home has been repossessed it might not be too late to stop it even if it is only hours before the eviction is due to take place. If you haven’t managed to come to an agreement with your lender there are other alternatives which can help you to keep living in your home. There are companies who specialise in dealing with repossessions and this is one alternative to losing your home.

Companies such as these can help to delay your eviction, giving you more time while you decide the best solution for your circumstances. The company will usually provide you with no obligation solutions to avoiding eviction and having to leave your home. Most don’t charge any fees for assessing your circumstances and work quickly with you.

A company such as this can buy your home, you will then be able to rent it back from them which means that you wont have to leave. If you shop around for such companies and choose wisely then you may even be offered a period free of rent which allows you some breathing space.

A similar option is rent and buy back; a company will buy your home and will rent it out to you at market rate while giving you the option of buying your home back should your situation improve.

If you want to raise money quickly while still getting full market value, you can get immediate funds with which to clear your debt. If you clear your debt then the threat of eviction is gone. This option will allow you to buy back your home in the companies favour, usually after a period of between 6 to 9 months. The beauty of this option is the company will pay your monthly mortgage payments for this period of time, which gives you some time and breathing space to sell your home in a controlled situation while still obtaining the full market value. For an agreed fee beforehand, you are then able to buy out the companies’ option and get your hands on any cash equity.

Companies will also give you the option of a straight buy, to avoid repossession they will buy your home quickly. Providing you are able to raise enough money to clear your mortgage, account cash can be released from surplus equity for you to be able to use immediately. This money can be helpful to use as a deposit towards rental property, go towards the cost of a new home or tide you over until you get back on your feet.

Site Link: Visit Instant Angels if you need to stop repossession. You may be considering a sell and rent back or buy back solution for your house. Instant Angels can help you to achieve a quick and fast sale.

[tags]repossessions, stop repossessions, mortgages, refinance, sell your home[/tags]

Rent Back is a popular option during times of financial crunch wherein you sell the property and rent it back to get hold of some quick cash. You can resort to this scheme if you are in need of some cash on an emergency basis.

Financial hardships can beset anyone in today’s age of dynamic flow of money. Selling your property is often, a more viable option due to quick access to cash just after sale of your property. Even better, you do not lose the delight of still residing there, since you can rent it back.

If you are under any kind of debts, as when you had taken out secured loans in the past, rent back is a good way to clear your debts instantly rather than face the risk of defaults and repossession. This scheme is designed to help you in especially such situations where foreclosure of your property is a potential threat. You can recover the money and pay off your debts and also keep your home. This helps you save not only your home but also loss of face.

This scheme proves to be helpful in another ways also. And that is, to unlock the money tied up in your property. When liquid cash is more of a priority to take care of your other pressing needs, the equity in your home can be released this way. This can be considered also at the time of emigration. You can sell the property to gain more time in making a good sale and then you may rent back your house for a short period of time till you are ready to move out.

You can learn more about the benefits of this scheme from various websites as well as about the agents who can help you out in situations where Rent Back is the wiser decision. Needless to say, finding a reliable agent is not difficult if you are careful and willing to weigh your options.

About our Guest Author: The author is a real estate specialist and through his writing has given guidance to many people who are in search of buying or selling property. He is currently associated with VIP Services which are focused on helping people selling or buying houses within a short span of time and that too in cash.

Site Link: Visit Instant Angels if you need to stop repossession. You may be considering a sell and rent back or buy back solution for your house. Instant Angels can help you to achieve a quick and fast sale.

[tags]Rent back your home, quick house sale to rent it back UK[/tags]