Archive for repossession
Apr
29
Repossession Stopped - Why Making The Right Choices Can Help You Keep Your Home.
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Everyone dreams of owning their own home but that dream can turn into a nightmare often through no fault of your own. Redundancy, divorce, illness and credit problems can create a situation where you’re not able to make your monthly mortgage payments.
Without immediate action, mortgage arrears can very quickly descend into full-blown repossession proceedings and the nightmare of losing your home - and any equity you have in it - becomes a reality.
The good news is that help is at hand. By remortgaging your house with an experienced broker you can stop repossession proceedings in their tracks and get on with your life with a new mortgage that suits you.
Read on to see how these specialist companies can help you no matter where you are on the repossession ladder.
1. MORTGAGE ARREARS
Missing even just one mortgage payment can cause enormous damage to your credit rating and, unless you can pay off the outstanding amount immediately, can quickly become a real problem.
A missed payment is logged as mortgage arrears - if that payment isn’t settled immediately it rolls on to the next month meaning that, until the outstanding amount is settled, you are registered as being in mortgage arrears.
2. REPOSSESSION PROCEEDINGS
Missing several payments or having longstanding mortgage arrears could lead to your mortgage lender starting repossession proceedings.
The first step would usually for the mortgage company to issue a claim form citing the time and date that you would be required to appear at county court.
This can often be a confusing document with a great deal of information including detail of your account, description of the property, details of any previous attempts to repossess the property and details of your arrears.
The claim form is accompanied by a form called an N11M “Form Of Defence”; it allows you to explain your circumstances and what you will do to resolve your mortgage arrears and has to be completed within 14 days.
3. COUNTY COURT HEARING
Even if you have replied to the claim form you must attend the court hearing. Don’t expect an Old Bailey style trial - County Court hearings take place in a private room with you, the district judge and the lender’s solicitor.
You will get a chance to tell the judge what measures you intend to take in order to pay off your arrears.
If your offer is reasonable - for example, by agreeing to remortgage your home, they usually grant a suspended possession order. This allows you to stay in your home provided you pay off the rent plus an agreed amount toward your arrears.
4. POSSESSION ORDER
If you can’t convince the court that you are able to clear the arrears - or if you fail to turn up for you County Court hearing they will issue a possession order. This gives you 28 days to settle your debt or face eviction.
5. EVICTION WARRANT
If you cannot settle your arrears within 28 days OR if you fail to comply with the suspended possession order the lender can apply for an Eviction Warrant without further recourse to the courts. Once an eviction order has been issued, court bailiffs will then set a date when they will visit your property to make sure you have left. The primary aim of repossession specialists is to ensure that this does not happen.
Repossession
Apr
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
Apr
27
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
Apr
26
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
Apr
23
How To Protect Yourself From Repossession
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When a person buys a vehicle they usually get a loan for the purchase. This loan is called a secure loan and the vehicle is used as collateral for the loan. What this means is that if the person fails to pay their loan the lender can reposes the vehicle and sell it to pay off the loan. Repossession is part of the law and can happen without any interference by the courts.
Repossession occurs when you are in default on your loan. You should read your contract very carefully to ensure you understand the terms and that you know exactly what default is defined as. This way should you ever be at risk at defaulting on your loan you can take action before repossession occurs.
One a repossession occurs it is very difficult to get the vehicle back. The best thing to do is avoid the repossession in the first place. If you are going to be late in making a payment or can not make a payment it is always best to contact the lender. They will usually be willing to work with you.
That is because even once they repossess the vehicle and resell it, they will not likely get all the money owed to them. Vehicles depreciate or go down in value once they drive off the dealers lot, so they will never be worth as much as the original loan amount.
Repossession can occur at any time once you have defaulted. Many repossessions take place at night or early in the morning when your vehicle is assured to be at home. They will simply tow away your vehicle and are not by law required to even contact you.
If you know repossession is imminent you can voluntarily return your vehicle. The only benefits of this option are that you will reduce the cost to you. During a repossession the lender will charge you the cost they incurred to actually repossess the vehicle. You will basically be saving yourself a little money by turning the vehicle in yourself.
Once the vehicle has been repossessed the lender will either resell it or keep it. They have to inform you of what is taking place. They also have to give you the option of getting your vehicle back. If the lender does sell the vehicle you are then responsible for any amount of your debt that was not paid through the sale of the vehicle.
Repossession is something you should avoid at all costs. It is not pleasant and leaves a terrible mark on your credit, making future vehicle purchases difficult, if not impossible. You should try everything possible to avoid repossession.
Most importantly, when you get the loan you should ensure you can afford it and if you ever experience problems keep communication open with your lender. You may be able to avoid repossession if you do this.
Sell and Rent Back
Apr
22
Statistically, the figures for home repossession have risen by 45%, according to Government figures. There can be many reasons that lead to house repossession, such as: divorce, credit card debt, illness, secured or unsecured debts or separation.
The process of repossession can legally begin when 2 payments to a lender have been missed. The first missed payment brings the borrower into arrears with the lender, who then have to be contacted and a payment schedule agreed. If the borrower does not contact them, or cannot afford to make the payments and a second payment is missed, then the lender can begin the process of home repossession.
The first stage of this is for the lender to state in a letter that the borrower has seven days in which to meet the payments or to agree a payment scheme. If this is not possible, then solicitors will begin court proceedings, seeking a home repossession order.
Usually the court will try and see house repossession as the last eventuality. However, if the borrower is deemed to be unable to make the necessary repayments, including arrears and penalties, then he will be served with an eviction notice and a date will be scheduled to leave the house.
The repossessed home is now the legal property of the mortgage lender. The lender can then instruct an estate agent to put the house on the property market or for it to be sold at auction.
First-time house-buyers can research these properties and they can become an affordable alternative in an increasingly expensive market.
Offers can be made on a repossessed house, but the lender may decide they want to publish a ‘notice of offer’ in the local press. This states that the lender will accept higher offers that are received by a certain date.
Auctions used to be mainly used by investors looking to by the property and sell it on at a profit, but now those wanting to get onto the ‘property ladder’ - but may not have the necessary funds for a standard purchase - can do so, as the properties are usually sold for less than their market value.
Other benefits include the bidding process, which is in an open forum so all bidders know the price and do not have to bid ‘over the odds’ to secure the sale. Also, the process is much quicker than the conventional sale process, usually taking 1 month from sale to occupation.
There are other factors involved, however. A repossessed home may be in need of repair and renovation or carry a negative credit rating associated with the address - although this can be absolved by contacting the relevant credit reference agencies.
There are lists of auctioneers available in local directories, but it is also worth contacting estate agents and mortgage lenders who have a vested interest in the sale of any repossessed property, although mortgage lenders can be secretive about their involvement in house repossession, in terms of image-consciousness.
The Internet offers many services that can supply lists of repossessed properties, but these are likely to generate a lot of interest, due to the potential to buy a house at less than market value.
Rent Back
Apr
20
Stop Repossession With a Quick Home Sale
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You can stop repossession with a quick home sale. Repossession is often in the news and more and more people are affected. When you miss mortgage payments, financial difficulty is not far behind. When lenders write and ask you to get in touch, sometimes it seems easier to ignore the letters. Even if you respond, you may not be able to agree on a deal. It’s a stressful time, and figuring out how to stop repossession can affect your life and health.
You may not realise it, but you can stop repossession of your house even after proceedings have begun. It’s better to do this before you end up in court and there’s one sure way to save the situation. Stop repossession with a quick home sale. When you sell your home, you will get the cash you need to repay your debts and your credit rating will remain intact. That means that you have a better chance of getting a mortgage in the future. Making ends meet and talking to lenders can cause great stress. You can end that when you stop repossession with a quick home sale.
Will an open market sale help me stop repossession?
When you use an estate agent to sell your home, then you will probably get a good offer on your home, but how long will it take to get the cash you need? There are no guarantees about the completion date and if there’s a property chain you could find yourself without a buyer. How will you stop repossession of your house then? If you need to stop repossession with a quick home sale, then there is a better option.
I need to sell my house fast
Call St Genix Fast House Buyers on 0800 316 7600 to stop repossession with a quick home sale. We are experts in fast house sales and will buy direct, for cash. That means that you get a quick, guaranteed sale. With a sale to St Genix, you get:
A guaranteed sale within four weeks
No need to pay an estate agent
Lower legal fees
A fast way to stop repossession
We promise to complete the purchase of your home within a month. We can do the deal more quickly or more slowly if you need us to. We are happy to work to your timetable so that you can repay your debt when you need to. You don’t even need to leave home.
How can I stay at home when I sell my house fast
If you are concerned about how to stop repossession, then you don’t need any additional worry. If you sell to an estate agent, you have to move out on completion date. When you sell to us, you don’t have to be homeless. You can decide if you want to stay in your home. Just ask about our rent back arrangement. You can rent your home at a fair market figure and avoid unnecessary expense and stressful disruptions.
St Genix Fast House Buyers have expertise in helping clients to stop repossession with a quick home sale. We will buy your property and complete the sale within a month. For a free valuation, call us now on 0800 316 7600.
Real Estate Professionals
Apr
19
Cashing in on Repossession Property
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With the number of repossession properties on the rise there are a large number of companies and individuals who have begun invest in properties owned by people in financial distress.
In fact, the sheer volume of home owners looking to stop repossession of their properties due to financial problems has spawned a national trend. Home owners who are heavily in debt and have not been able to keep up with the monthly repayments due on their loans have increasingly been offering their properties up for sale at heavily discounted prices.
The catch is that the buyer must be in a position to take the property off the current owner’s hands in a short space of time. The overall objective is that the seller will receive enough funds from the buyer to clear their loan balances and arrears and stop the repossession process, even if that requires selling the property at a hefty discount.
Savvy property investors have latched on to the notion of being able to secure properties at bargain prices and currently there are more people than ever before offering financially troubled home owners the chance to clear their debts and avoid repossession and eviction.
For many investors, this seems like the perfect way to build up a healthy property portfolio, but what are the risks?
The first and probably biggest risk to consider is that properties offered up for sale by people who have no money are usually in a poor state of repair. This means that although the buyer may receive a large discount on their purchase, they may be required to fork out some money as soon as the purchase is completed to bring the property up to scratch.
It makes perfect sense that a home owner who cannot meet their monthly mortgage payment for at least several months can also not afford to keep their home in a good state of repair.
Another risk factor to consider is that many of the sellers wish to remain in their homes as rent paying tenants. Buyers will need to keep in mind the fact that their tenant may not have any savings at all, and possibly an irregular income, and therefore may not always pay rent on time or in full.
If the tenant does turn out to be less-than-perfect the landlord will be forced to evict them. It is probable that the tenant will not be pleased with this considering the property was once their own home and, despite the fact they may not be paying their rent on time, they may not go quietly.
A final risk factor to consider is that the cost of borrowing has increased in recent years and may continue to do so. Therefore, if the investor is going to finance their purchase with a mortgage, they will need to factor in potential future interest rate rises.
Passive Income
Apr
12
How To Stop A Repossession
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This article will outline the steps you can take to stop your home being repossessed. It assumes that notice of eviction has been issued by the court bailiffs giving a date and when eviction will occur. If you are not sure if you are at this stage please contact the national debt helpline.
If you have been given a notice of eviction you may be able to stop this, but you must act quickly.
Which forms you need to fill out
If you need more time to sell, to find somewhere else to live, or want to make a revised offer to pay the arrears by monthly instalments you should apply for the warrant to be suspended on court form N244.You can pick up this form from your local county court.
When you fill in the N244 form remember to:
* Write the claim number of the case;
* Write the warrant number;
* Include the reason you have not been able to pay and your new offer (in part A on the front of the form);
* Tick the box in part B saying you rely on evidence in part C;
* Attach your personal budget or write it out on the form in in part C on the back of the form;
* Sign the statement of truth at the end of the form.
Do this as soon as possible to allow the court time to arrange a hearing.
The court will set a date for a hearing, usually before the eviction date. It is imperative you go to this hearing or the court is unlikely to suspend the warrant.
If any further warrants are issued at this hearing you may still be able to ask the court to suspend them (for example, to give you time to find somewhere else to live). If all your efforts to stay in the property fail, you will be given an eviction date.
When the bailiffs come
Bailiffs have the power to force their way into your home if they have to so you need to move out before this date if you have not been able to stop the eviction. If they arrive when you are there you will have very little time to pack up your belongings and will only be able to return to pack up a couple of weeks later. You will then have to get the lenders permission to enter the property again in the future and arrange to remove your furniture. Some lenders try to arguethat they can keep any belongings left in the house. It is safer so remove all that you can before the eviction date.
After your eviction your lender will still add interest to your mortgage until the property is sold. They are obliged by FSA rules to sell your home fast for the best price but in reality their need to get a quick sale to recover their money means that it is likely to sell a lot lower than the price you could receive on the open market. They may sell it anything from 15% - 40% below the market value of the property.
The proceeds from the sale are used to pay off the court costs, the estate agents and solicitors bills, the mortgage and any second or third mortgages. The lender must tell you in writing how the money has been spent.
When will the nightmare end?
They must send you any money which is left over but if not enough was raised on the sale of the property to pay off all secured debts and costs you will still owe money to the lender. Due to repossessed properties being sold below their market value this is all to common unfortunately.
You do not want to get to this situation so take action as soon as possible by trying to pay off the arrears, selling your property before you get evicted (so you get a better price) or selling and renting back your property so you can stay there.
Passive Income
Apr
10
How Repossession Works
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Repossession is the action of regaining a possession, usually a financial institution taking back on object that was either used as collateral, rented or leased, for which payment remains due. If you are facing repossession of your home or car, you may want to consider declaring bankruptcy to save them.
Filing for bankruptcy will temporarily stop any repossession process, which you may be facing. Even if your items have already been taken from you, your bankruptcy filing may be able to get them back if you act quickly.
If you file a chapter 13 bankruptcy you most likely will be able to keep both your car and home. If you file a chapter 7 bankruptcy you can probably keep both for a little while, but in the end you will likely have to end up liquidating them. This all comes down to what state you live in and what the laws say about liquidating assests for bankruptcy.
The chapter 7 bankruptcy is a short term solutions, for saving your property. Most likely you will have to give it up, but with a bankruptcy discharge, you can start over again and start getting your financial life in order. With a discharge you won’t have to worry about having any creditors calling you or people harassing you, you will have to use cash though to purchase items for the first few years, you won’t be approved for credit. It you do get approved for any credit, make sure that you can afford the payments, most of them come with a high interest rate.
If you are advised to file for a chapter 13 bankruptcy you can stop the repossession and foreclosure and hopefully it will save you from losing your home at all. With chapter 13 you do make arrangements and come up with a financial plan that you submit to your creditors, on how you will pay back the debts you owe them. During the time frame that you are paying your debt back, creditors are not legally allowed to continue collection efforts or start any new ones.
The main benefit from choosing a chapter 13 over a chapter 7 is to save your home and car(s) from repossession. Consulting a bankruptcy lawyer in your home state is very advisable here. They can assist you in figuring out if you would be more qualified for chapter 7 or chapter 13. They can also help you save your car and home, if the law allows it.
Bankruptcy isn’t always the best solution though, if you have other options for paying your bills and getting your repossessed items back. If you are in a financial crisis though it may be your only means, for saving your home and car. If you do declare bankruptcy, you must be able to get your finances back in order so your property doesn’t get repossessed again. This is because you can only declare bankruptcy every 8 years, so if your facing repossession again, you won’t be able to declare it again, very soon.
Passive Income
