Saturday, January 10, 2009

7 steps to avoid House Repossession

The Council of Mortgage Lenders said the number of cases in arrears at the end of September 2008 was 168,000 - 8pc higher than the 155,600 in arrears at the end of June. Are expected to 170,000 due later this year. 

The CML also said that 11,300, the properties were repossessed - 12pc higher than the 10,100 in the second quarter of 2008. The CML expects a massive Repossessions 45,000 by year-end. 

Granite, a part of Northern Rock revealed that customers mortgage 90 days or more behind with their payments by more than 2pc of £ 35.5bn of mortgages. That compares with less than 0.5 percent of mortgages were in arrears of 90 days in mid-2007. 

If you are in financial difficulties are a few steps to help prevent property. 

1) WHAT IS DEBT - Write them down in detail. 

You need a clear idea of your own financial situation, write down all your debts, using software such as Microsoft Excel can be used to help cover the interest you are paying for and to prioritize the debts. Make sure this figure includes all food, fuel, gas, clothing, loans, council tax etc. Then add 5% to this figure just to be sure! 

2) Talk to your lender 

As soon as you miss a payment on a loan, what ever kind, mortgage, credit card or loan of this car will cause the lender to automatically start sending letters to help solve this problem. DO NOT bury your head in the sand and think this is going, not until you've sorted out with their lender for satisfaction .... 

Opening a dialogue with your bank, make sure to record all conversations you have with them (on paper, no audio) by having the date, time, name of the person you are talking with their position, location and extension number. This information is vital. Tracking the efforts made to solve this problem may be crucial if it is brought to court every time, follow each conversation. 

Ask your bank for the payment holiday, switch to an interest-only loan instead of paying interest and capital or you can try to extend the life of the loan with the down payment. 

Offer what you can pay each month, even if only a small amount. Be seen to be committed to solving this problem, as we mentioned. A new part-time work, recording conversations on paper outlining your calls and letters to lenders will be favorable for you in court. 

3) a second job - you probably need more money in. 

At this point, we suggest taking a second job if you think you are going backwards economically, even if its 1 night a week stacking shelves at the local supermarket that money and can be aligned exactly what you need to fix this problem before subsequently. It is also a great piece of evidence in court and your lender to show that you are trying to solve the problem yourself. 

4) trial court - Meet with them and have an easier life. 

The day I miss a mortgage payment, credit card or loan payment will be the day that the financial institution that connects loan will come in search of answers. Often, your first point of call is to develop a payment plan. The payment plan will take into account their economic situation from which a payment plan is agreed between you and the bank. Make sure you can actually afford to follow the payment plan differently than if you break, well, that when a court ruling against probably take place. 

5) Negative - It's not as bad as it sounds. 

Ok ... is not large, but all that means is that you bought a £ 100,000 house with a 90% loan to value (LTV) to put in £ 10,000 as a deposit and the bank put in £ 90,000. The day your home or investment is worth less than 90,000 pounds then you are in negative equity, the bank should be more than the house is worth. Lenders do not like this position. It is clear that home-owners to borrow 100% have a higher probability of falling into negative equity than a 75% LTV loan. 

As home prices slip more and more borrowers are being affected by negative equity. If possible, and maintain repayments and ride out the storm until house prices rise again. To revert at some point, but to respond to the highs of summer 2007 could be 3 to 5 years. But history shows that property prices rise over time. 

6) USE OF YOUR INSURANCE Mortage 

Many people have insurance on their mortgages or sometimes, through their work. Usually, a product sold at the same time as your mortgage and you pay your mortgage for you (usually after 3 months) if they were fired or unable to work due to illness. Carefully read your policy and explain to your lender that you maintain such a policy and that the money will be on its way shortly. The lender will generally prefer to wait for the possession of your home. Lenders do not want to sell your home, which costs them time and money and simply prefer to pay off the mortgage. 

7) seek independent advice - Much of this can be had for free 

There are a number of very useful and free services for people in financial difficulties. Again, keep positive, act quickly and call or make an appointment with Citizens Advice and Counseling Service Consumer Credit. Sometimes they will negotiate with lenders on your behalf and in all cases to know how the system works much better than the average man, in your car can save you time and aggravation. 

Due to increasing financial difficulties, Repossessions and getting help from some organizations has been increasingly difficult. So once again, act quickly so it is first in the queue. 

Other information to consider when faced with the property: 

A property seriously damage your credit rating, making it difficult to obtain credit cards or loans in future. 

If it really comes down to a lender, there are better ways to sell your house through a bank. 

OPEN MARKET SALE 

The banks just take her home to an auction house Allsop and the bank never receives what is the supply, then remove their own "handling fee" and then if there is anything left after your debts have been eliminated by usually receive this amount. The problem is that the houses sold in these auctions are usually sold at a minimal price compared to what they could sell their house for on the open market given the proper marketing agency with a reputation. Its better to be realistic about the prices, talk to local agents and see what they really think they could sell their house for, it is in fact to sell, not what the market for. Make sure you understand the time in question and look at the market with their own eyes, ask the sales agent of the past who knows the area like your house. Do not wait any longer, in fact, at least think about this weather! 

SALE AND RENT BACK 

Another method that has been used more and more is selling his house and then rent again. In short, you agree to sell the property to a "sale and lease back" the company's usually 80% to 90% of its value on the open market. Getting to stay at home, but now as a tenant. 

Usually, you will agree with the buyer to rent for a given period in a lease, most likely 1 or 2 years and a slightly higher market rent. The advantage is that you and your family will not have to move, not the judgments of the courts of the county will count against you involving your credit, the bank paid off and life goes on ... so is the plan. We suggest that you look at these offers very carefully. read all the fine print and make sure you understand every line of it, exactly what is offered in the contract. What are your fees? What are you paying rent? What are the deadlines? Guarantees? Can I break the lease? This offer is fair or would it be better to just accept repossession by the bank in an auction? When you sell your house and rent back all its debts and the mortgage is paid or is still left with the money owed? Sale and rent back can work brilliantly, but can also be a disaster. Care!


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