Archive for August, 2011
Aug
31
Mortgage Arrears: How to Save Your Home From Foreclosure
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There are many times in life where situations may occur that put a stress on your financial situation. Losing a job, medical emergencies, or family situations may cause you to fall behind on your bills. However, losing your job does not have to mean that you also lose your home. If you have accumulated some mortgage arrears on you home after you lost you job, do not lose heart. There are still some ways that you could save your home from foreclose. Being in contact with your bank and working with them to help you out, is the best thing to start with. To help you stave off foreclosure on your home, here are some ways to handle your mortgage arrears.
Contact Your Bank
There are hundreds of people all over the country that have missed a couple of payment on their home so you are not alone in this predicament. If you think that you will be unable to pay your amortization for a couple of months while you are still trying to find work, it is best to call your bank and tell the loans officers about you change of circumstances. You bank has probably handled this situation before and they know how this go. Banks are not in the business of reposing and foreclosing properties so they will not really jump at the chance of divesting you of your home. Besides, if the bank forecloses your home, it will now have to face the challenge of disposing the property in order to free their capital. Since foreclosing your property will entail more work on he part of the bank than just merely giving you a couple of months grace period, the bank will most likely give you the grace period to pay for your amortization.
When negotiating with the bank for grace period, make sure that you express your strong intention to pay your debts. You should also outline your plan on how you will go about paying your debts and how much time it will take you to do this. If the bank officer will see your strong interest to pay your debts and keep your home, he or she will be more open to the possibility of giving you the extra time that you need.
Leasing Your House
If you cannot pay for the amortization of your home and you have exhausted your grace period, you might want to lease your home for a while. You can use the money that you get from the lease to pay for the amortization. If you have no other place to go, you can just rent a portion of the house. You can move to the basement of the house for a new months and lease the upstairs rooms. Note that if you really want to keep your home, moving to the basement for a few months or so is a small sacrifice that you have to do. Besides, living in the basement of your home is not really that bad. Once you get a nice job, you can always move back to the upstairs room.
Sell and Rent Back
Aug
31
In the wake of the current property crisis, homes are being repossessed by the hundreds every week in the UK alone. Many home owners are failing to make their mortgage payments every month due to a variety of reasons including rising interest rates and their fixed rate mortgage’s coming to an end leaving them with their monthly payments doubling in some cases – clearly not good news for any home owner.
While many are left in hopeless situations of which there appears to be no way out, it may well be worth their while contacting a reputable property buyer who can either offer them a very quick sale of their property (and the repossession proceedings stopped altogether) or a quick sale and rent back of their property, meaning they will have the ability to remain in their home not as a home owners but as a tenant at the same time as avoiding repossession.
Surprisingly (and unbeknown to a lot of people), the repossession proceedings can be stopped even in the very latest stages if a property buyer gets involved. These companies are experienced in stopping repossessions and manage to successfully prevent hundreds of repossessions taking place on a weekly basis, so you can be sure that if anyone can get you out of your current crisis, they can.
The one thing to look out for is to ensure you get a reputable property buyer (and I emphasize the word reputable). The bad press recently given to the sell and rent back industry has been bought about by a small number of individuals who have failed to fully explain the ins and outs of selling and renting back a property to the homeowner. Unfortunately, this has had a knock on effect on the reputable property buyers out there who genuinely want to help hundreds of people in distress to make the best choice about their current situation. You can use our comparison chart located on our website (follow the link at the end of this article) to help you to judge whether the buyer you are considering fits the criteria of a reputable property buyer.
The idea of sell and rent back is quite basic, the property owner, who for whatever reason can no longer afford to own the property they live in sells the property to a property buyer. The property buyer is different from conventional methods in that they ensure the sale completes within just 28 days (various property buyers differ, but this is our companies current time scale) and a good one will also liaise with the courts on the sellers behalf if they are facing repossession to ensure that the proceedings are stopped immediately. The courts are happy to halt proceedings in most cases as they are aware how quickly a reputable property buyer can move due to their unique purchasing and financing techniques. The homeowner then becomes mortgage free within a month and becomes a regular tenant on an assured short hold tenancy agreement. The property buyer becomes their land lord.
There has also been some bad press lately concerning the fact that a lot of property buyers end tenancy agreements almost immediately leaving the seller homeless. However, do not be deterred straight away, simply ensure that the property buyer you choose is 100% genuine and fully explains everything to you which you need to know. Do not be afraid to ask questions, you have a right to.
Any property buyer worth their salt (us included) can see the great benefits of holding on to investment property for as long as possible even throughout the current climate and beyond. The investors our own company works with actually want properties which they can keep for the long term. The current fall in house prices and rise in interest rates is actually doing the sell and rent back market (and its upcoming customers) a huge favour in that it is weeding out the ‘bad guys’ who are in it only because they once thought it was a good way to raise a quick buck. Those investors are now panicking to sell their investment properties off as they are scared they may loose money – the reputable ones are in it for the long haul, still buying and helping out those in need and not selling a single property. They know that the property market moves in cycles and always has done, and they are not worried by the short term crisis the UK is facing. As mentioned before – they want properties for the long term and do not sell at the first sign of trouble.
There are various reasons why people do choose to sell and rent back their property. Many people want to unlock the value within an asset without having to take on any extra debt. Many people may not be able to refinance (e.g. credit problems, previous bankruptcy, arrears etc) and sale leaseback is the only way to release the money and retain the use of the property. Sale leaseback also gives the previous owner the flexibility to move out and go and do other things without worrying about the property or looking after major repairs.
Here are
just some of the benefits:
1. Repossession proceedings are
stopped
2. Credit rating is not further
tarnished
3. The seller may end up with more money from a property investor as opposed to having the house repossessed and ending up with nothing
4. The seller could reduce his or
her monthly outgoings to a much more manageable level. In many cases the cost of the monthly rent following the sale is less than the previous mortgage payments were.
It is important that if you want to avoid repossession, you contact a reputable property buyer ASAP. Although they can help even at the last minute, obviously the more time you do give them the better the chances of them being able to do something for you.
In my opinion repossession should be avoided like the plague if there is any possible way it can be, and if you have equity in your property that possibility is there. If nothing else, I urge you to get a free cash offer and have a chat to an advisor about your options. As with many things in life, knowledge is everything when it comes to making the right choices.
Sell and Rent Back
Aug
30
Stop Property Repossession Fast in the UK Real Solutions for Real Problems All You.
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Repossession in the UK has reached unprecedented highs, with a shape increase as much as a 65% increase of home owners could be in danger of being repossessed.
If you fall into this category and your are in fear of being repossessed read on as there are solutions that you and other people can use before its too late that will allow you to continue living in your own home.
There are many company’s now offering services such as “Sell & Rent Back” & “Rent & Buy Back”
Sell And Rent Back
the basic the idea behind the sell and rent back solution is simple, even if your days or hours away from being repossessed the company’s specialising in this field are able to review your circumstances have your property valued and give you a quote their and then in cash that you can accept to sell your property this will allow you to immediately settle the outstanding balance and any fee’s interest and arrears you may have in connection with the property and then continue living the property as a tenant. This can be a very good option if your house is about to be taken away from you and save the hassle of having to find somewhere else to live
Rent And Buy Back
This is exactly the same as the option described above apart from there is a clause that enables you to buy back the property from the company at a later date if your financial situation improves this may even include being able to buy it for a discounted rate depending on what kind of arrangement that you come to.
Of course if you wish you can always sell the property and move to another one to rent instead if you prefer this is always an option for you.
The main benefit of these kind of deals even if an eviction is in full swing it can stop it dead in its tracks because at the end of the day the lender does not wish to repossess your property if they can avoid it, so when informed by the company wishing to buy it that they wish to do so they will be more than happy to cancel the repossession from taking place as this would ensure further costs to them that they do not wish to pay.
What ever your solution you should always seek professional advice about your situation as everyone’s situation is different and their may be options available for your specific circumstances.
go now to http://www.avoidhomerepossession.co.uk/
Quick Property Sale
Aug
30
I need some clarification on this matter.
I know mortgage payments are paid in arrears. Meaning the payment due on the first (ex: Jan 1) is actually for mortgage principal and interest accrued on the previous month (ex: Dec).
So for tax purposes, can I deduct the mortgage interest that is reflected on my Jan 1 payment but is NOT reflected on my 1098 that I received from the lender? Basically I believe the amount on the 1098 is short of one month’s interest…
Thanks!
Quick House Sale
Aug
29
Buckhead Apartments: Rent an Apartment in a Growing Community
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Buckhead is on the move. This bustling area in metro Atlanta is known as an affluent community where culture, cuisine and class enjoy considerable esteem.
The Streets of Buckhead, a behemoth developmental project led by Atlanta commercial real estate pioneers Ben Carter is slated for completion in 2010. This massive development project is completely restructuring Buckhead Village, transforming it from a quaint community into a min-metropolis replete with high-rise office buildings, world-class hotels, fine dining restaurants and dozens of boutique shops and retail spaces. The Streets f Buckhead will encourages visitors to Atlanta and residents alike to share in one of the southeast’s best cities.
Buckhead’s economy, despite some struggles, remains vibrant. This mainly is due to its prosperous population, a demographic whose median household income extends past $100,000, where average homes sell in the $400,000 range. The Streets of Buckhead development promises to bring global interest and will generate millions of revenue dollars from tourism, entertainment and culture.
Commercial property is a hot topic in Buckhead. The Atlanta Journal Constitution recently ran an article about the situation.
About 2 million square feet of office space is under construction in Buckhead, which an unnamed commentator called “goofy” in an Urban Land Institute report released in November.
Grubb & Ellis says this year will be a poor one overall for the office market.
“Employment growth drives demand for office space and the labor market will be shrinking in 2009,” said Robert Bach, senior vice president and chief economist. “Government and health care will be among the few sectors with growing demand for office space.”
With so much development on the horizon it is easy to grow excited, and hopeful. Buckhead truly has good things in store for its future. It is also an exciting time to explore residential property. This takes time. It is important to immerse yourself in the community, learning the neighborhoods, the people, the parks and restaurants. All of this information will guide you as you narrow your selection for which home to buy, where to rent an apartment. Home prices are still expensive, despite the downturn in Atlanta’s real estate market. But it is an opportune time to rent, with thousands of apartments, in numerous neighborhoods, available for your perusal.
Rent Back Fast
Aug
29
Sell My House Quickly Before I Am Repossessed is This Possible? Yes by Doing.
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If you are one of the thousands of unfortunate people in the UK that have been hit by the credit crunch and and falling property prices and are now facing the possibility of loosing your home you will be happy to be told that there are solutions emerging the financial market place that can help you avoid repossessions and allow you to stay in your home.
With the raise of interest rates in the UK, repossession is real problem being faced by individuals and family’s all over the country. During the hay days of the mortgage market lenders were more than happy to lend what ever you may have asked for, in some cases extrapolating up to 9 times someone’s annual income with out to much insight into the potential problems that have occurred in recent times.
Facing repossession if not a nice situation for anyone to be in unfortunately there is not easy way out as the lenders need to recoup their money, the only way to stop repossession is to come up with the money to clear the outstanding balance or a convincing plan of repayment, despite this you do have options to achieve these things, but first here are some things that you should do in order to take positive action.
1.Give your lender a call
in most cases it is possible to work out a deal with your lender even at the last minute. They may be able to look into possibility they have not yet explored, weather it be lending you more money to clear your debts or a new payment plan, even if you have received a letter to appear in court its still possible to arrange a solution this way.
2.Make sure your organised
if you have to go to court then the best thing you can do is to be organised, make sure you try and obtain all the correspondence with the lender and any other 3rd party’s on file. A copy of all your expenses and historical income this could help show that you haven’t defaulted though any fault of your own and allow you to explain how your planning on selling the house and settling the debt in full.
3.Get Expert Advice
It is always best to seen expert advice, both legal and advice from company’s that deal with repossession as they will be able to advise you on situations that have been smiler and how other people managed to find a solution, make sure you have any supporting documentation as this can be useful for allowing someone to properly assess your situation and deliver the most relevant advice to you.
go now to http://www.avoidhomerepossession.co.uk/
Rent Back
Aug
28
Common Myths Of House Repossession Explained
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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.
Real Estate Professionals
Aug
28
Choosing Whether To Sell Your Home Privately
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When faced with the daunting task of selling your home you will need to make a decision on whether to sell it on the open market through an estate agent or sell it privately.
Selling your home privately usually entails offering buyers a generous discount from the price that an estate agent could achieve on the open market. Because of this it may appear as though selling your home privately does not make financial sense.
However, a closer look at the situation may reveal that selling your home in a short space of time for a reasonable discount makes perfect sense.
Selling Your Home at a Discount
These days there are hundreds of companies and individuals who offer to buy property from people who are looking for a quick sale. Most of these businesses make offers in the region of 75-90% of the market value of the properties. In return they offer to buy the property quickly and in some cases they pay for costs such as legal fees.
At first glance this may seem like financial suicide. However, if you calculate how much money it can cost to sell your home on the open market the discounted price may not seem so low after all.
Selling Your Home through an Estate Agent
First of all there is the estate agent’s fee. This fee is payable upon selling the property and is usually around 2% of the final selling price in the UK. This can account for a significant chunk of the final selling price and raises the question of whether the value of the fee should have been discounted from the market price initially in order to trigger a fast sale on the private market.
In addition to the estate agent’s fee you will be liable to pay for legal costs. These costs are charged for work relating to transferring the title of the property as well as carrying out searches and are usually higher for leasehold property than freehold. This is because the solicitor will be required to do more work when transferring ownership of the lease.
If there is a mortgage secured on the home you are selling then you will be liable to keep up with the repayments while the property is still in your possession. If you have vacated the property and do not have a tenant paying you rent, you may find yourself paying funding the mortgage payments on the property you have for sale as well as paying rent or making mortgage payments for the home you have moved in to.
Finally, you will be required to continue to pay for council rates and utility bills while your home is on the market. If the property is vacant you may be able to secure a discount on the council rates.
Weighing up the Options
Instead of attempting to sell your home on the open market in order to achieve the highest price possible you may be better off accepting a discounted price upfront. If you sell your home quickly at a discounted price you will not be liable to pay for all of the costs detailed above.
Additionally, if you accept an offer from a business that specializes in buying property quickly, they may also pay for your legal and survey fees. Of course, if they relieve you of your home quickly, you will also not be liable to make further mortgage payments and will not have to continue paying for council rates and utilities while your home languished on the open market.
All of these additional costs combined can account for a few extra percentage points off the open market price of your home. When added to the estate agent’s fee the outgoings you are likely to pay by selling your home on the open market could total between 5-10% of the open market value.
Finally, your home may not achieve the advertised price originally set by the estate agent. It is likely that you will have to provide a discount of around 5-10% in order to secure a sale.
From this, it is clear to see that the discounted prices quoted by companies offering to help you sell your home quickly may make financial sense after all.
Rent Back
Aug
27
Are You Seeking Mortgage Debt Advice?
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Today in the UK there are more people than ever looking for advice on repaying their mortgages. Are these the people who borrowed way beyond their financial means?
January and February this year have seen record breaking numbers of people asking for professional debt advice about their mortgages. Recent figures reveal that more and more people are concearned enough to get help with their mortgage arrears so these are people who already have defaults and arrears, let alone the hundreds and possibly thousands of people who are about to default on their mortgage.
There has been a huge 35 per cent jump in mortgage related debt enquiries in the UK, over January and February 2008 compared to 2007. The good news is that people seem to be learning not to continue spending on credit cards as the credit card related issues fell by 9 per cent.
Of 5.7 million issues dealt with in 2007 almost a third of these enquiries were related to debt; a rather worrying trend. As well as mortgages, the ever increasing energy bills and general household bills are huge contributing factors to the 215,000 new debt related enquires taken this January and February.
The combination of huge increases bills like petrol and diesel prices plus rising housing costs has put additional pressure on day to day finances when they are already stretched to the maximum.
The usual Christmas credit card debt enquiries have fallen by 9 per cent in January and Febraury this year compared to last year, however overdraft enquiries are up 7 per cent on the same time period. So it looks like people are just shifting the debts to other forms of credit, it will be interesting to see the number of debt consolidation loans and general unsecured loans taken out and the number applied for in January, February and when we get to the end of March this year. I bet there are lots of people trying to shift debt to unsecured loans, although the credit crunch has lenders tightening their lending criteria, making it more difficult to get accepted for a new loan.
If you are struggling you should tell whoever you owe the debt to as soon as possible if you’re struggling to make repayments.
Quick House Sale
Aug
27
Repossession Can Be Avoided by Choosing to Sell and Rent Back the Property
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Repossession can come about for many reasons, and of course this has devastating consequences on the whole family. If you are faced with losing your home as a result of being unable to pay your mortgage or even if you are already at the stage of repossession proceedings then you can stop them in their tracks and remain in the property.
A sell to rent back option could be the key to your mortgage problem whatever stage you are at. If court proceedings have already begun then the company would be able to work with you (providing of course you are selling to them) to have the court order stopped and give the sale time to be completed. The majority of sales this way will go through as quickly as possible in just a matter of a few weeks. Being able to make such a quick sale and of course reduce the anxiety associated with mortgage and repossession problems is essential and by being able to sell with the option of renting back the property you could get a win-win situation.
Of course when looking into taking a sell to rent back option you would have to weight up both the pros and cons of taking this as an option. The majority of companies will make an offer which is around 80% to 85% of the value of the home. You will be given a rough guide as to how much you could sell home for in as little as 24 hours from applying online. Someone will then come to see the property and provide you with a written estimate, they will also tell you how much rent you would have to pay and what you could buy back for if you wanted to take this option in the future. If both sides are happy the sale can then go through.
Although you would not be offered 100% of the value of the home you do not have any fees to pay such as those to advertise the home through an estate agent. You would also not have solicitor’s fees or indeed any fees to pay by selling this way. All of these fees could add to a considerable amount if you decided to risk selling yourself. There would also not be any guarantee that you would sell your home fast or indeed sell it at all this way. Another factor of course that you have to weigh up when considering taking this option is that you would be able to remain in the property as a tenant. If you need to sell due to repossession or mortgage problems then a sell to rent back option is worth looking into and it does not cost anything to get a quote using the free phone number which will be supplied or by filling in a form online. A sell to rent back could be the answer to your financial problems and of course if the situation improves you can buy back for the fixed price.
Quick Property Sale
