Posts Tagged ‘repossessed homes’

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Avoid Repossession: Mortgage Help Website

Saturday, October 3rd, 2009



The government estimates thousands of people are suffering with their mortgage repayments at the moment. Many are unsure where to get the right advice. Websites like our own are a good way of getting free impartial information on who can help. Many companies advise a quick sale of your house. Some pushing it on you for their own financial gain. Although in some scenarios, the immediate sale of a home can be the best option, it doesn’t always mean that it is the right one.

The government has set up a new website to help those who are currently finding it hard to make their repayments. The website is called MortgageHelp and has been set up by directgov.

The site provides info for:
- People struggling to pay their mortgage.
- People who have missed mortgage payments.
- What to do if your lender is threatening repossession.
- What to do if you have been issued with a court appearance for repossession.

The site encourages you to take action if you are facing problems, raher than just trying to ignore the situation. The site intends to provide free and impartial advice on wherre to gain assistance. It encourages getting a plan of action and the steps you can take to keep your home and avoid repossession.

It is estimated that over 200,000 families are getting government assistance in order to stop their home being repossessed. If you require help, don’t be afraid to ask for help and make sure you take the right steps in your situation.

If you are facing having your home repossessed or want further information on property repossession, visit Repossessed Homes UK.

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Repossessed Homes: What Happens in Property Repossession?

Sunday, September 27th, 2009



Property repossession and the number of repossessed homes is on the increase in this time of recession. This guide is intended to help you understand the stages of repossession, why it takes place and the things that you can do if you are faced with this issue.

If you are currently paying a mortgage on your property and are falling into arrears, your lender has the right to start repossession proceedings. The terms of your mortgage contract will state this. Normally a lender has the right to start repossession after 2 months of arrears, but most lending organisatons will work with you to try and clear the arrears and thereby avoid legal action against you. The best thing is to keep talking to your lender and update them on your current situation. If you are unable to keep up repayments or your lender is not satisfied with your proposals then the lender will take legal action by going through the local county court. This is done so that they can take control of the property and gives them the right to sell the property and recover the outstanding balance on the mortgage.

In the first instance you will receive letters from your lending organisations debt collections department as well as telephone calls to try to collect missed payments. As stated above always keep the lender informed of circumstances and attempt to come to a mutual agreement to clear the debt over time. If your account remains unpaid for 4-6 months or more, the your account will be referred for legal action to a firm of solicitors. They will probably write to you demanding that you pay the arrears in full or warning you that you will face repossession of your property if the arrears are not cleared and the account is not brought up to date. Always contact the solicitors and propose a mutual contract agreement or arrangement to clear the arrears.

Proceedings to start repossession will typically begin after 6 or more months of arrears and with the solicitors representing the lending organisation issuing repossession proceedings through the local county court. A hearing date will be set by the court and its advisable that you attend. It is important that you have all your documentation concerning your mortgage account and your account history as part of your preparation for the hearing.

At the court the person presiding over the hearing (usually a judge) can decide whether to do a number of things:
1)Adjourn the hearing – You will receive a new hearing at this stage and this usually happens in the case of absence or the requirement of more information.
2)Indefinite Adjournment or Dismissal – this normally occurs if full payment of the arrears have been made.
3)Order for Possession – This order will give the lender the right to possess your property after a period of 28 days. Even at this stage there are options for you to take in order to sell your house quickly.
4)Suspended Possession Order– in this case the order is suspended following the payment of the current installment and a mutually agreed amount towards the arrears.

The final option is a favourable position for all parties as it gives you a further chance to clear the arrears and gives the lender some security that payments will be made. However, if you default on the payment or the agreement the lender has the right to seek possession of the property by way of a possession warrant or notice of eviction.

A notice of eviction or possession warrant is occurs if you fail to meet the criteria of the suspended possession order or if you are still occupying your property after the time frame for order of possession has lapsed. In this case the lender will apply to the courts to have you formally evicted. The court will send you a date and time at which you must leave the property. A bailiff of the court will attend your property accompanied by a representative of the lender as well as a locksmith. They will come with the intention of taking formal possession of the property. Even at this stage avoiding property repossession is not too late.

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Protecting Your Property From Repossession

Sunday, September 27th, 2009



Protecting your Property From Repossession
If you’ve failed to make your loan payments, a crediitor may have the power to repossess the property which is attached to the loan. There are 2 kinds of loans – secured and unsecured. Secured loans, such as for a house or a car require that the property purchase by used as a collateral for the loan. If you fall behind on the payments for a secured loan, the creditor can take back the property and sell it to pay off your remaining debt – this is property repossession. The creditor may also be able to get a hold of other property you own and force its sale to pay the debt owed. If you are worried about a repossession or other debt, consulting our site will provide you with advice on where to get help. There are many places you can find free advice with regards to repossession.

How Badly Does Repossession Affect Your Credit?
In the UK, repossessions generally stay on your credit report for a minimum of 5 years, and for citizens of the US, around 10 years. It will hav ea real impact on your ability to buy another home. You can expect a repossession on your name to affect your credit score quite a bit, but how much depends on the rest of your financial situation. However, a property repossession won’t affect you forever and you will be able to buy another home in the future. Before taking the course of repossession, evaluate whether there are any alternatives and don’t just assume that repossession is the only option. Our help and advice section will provide you with info on organistaions you can provide free information on how to avoid repossession and what options are available to you.

Creditor Rights
Credit Rights arise in different contexts. In some cases they are determined by the underlying agreement signed between the lender and you that provide specific remedies in the event of obligations not being met. In other cases creditor rights may depend on whether the loan is secured or unsecured. A secured debt contains a pledge of property or other valuables that can be attached in court in the event of a default. An unsecured debt does not have this advantage.

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Repossessed Property Auctions

Wednesday, September 9th, 2009



The current economic crisis is hitting a lot of people in the UK hard. With increasing unemployment and the situation for the immediate future looking bleak, many people are being crippled financially.

With better times over recent years, many homeowners may have aimed slightly higher than their budgets would allow, with lenders providing 100% mortgages and excellent packages, buying property was never easier. Many did not consider the possibility of circumstances changing when they bought their home and agreed to higher monthly repayments in the good times. Changes in situations can mean financial difficulty can occur very quickly. For example, the sudden loss of job, a change in income, divorce, death, illness – these are all factors which can result in the amount you were earning becoming less.

Changes in circumstances can ultimately lead to property repossession. Failure to keep up repayments can mean your lender going through the repossession process.

Read our guide on what is home repossession? for further details of what actually happens in the repossession process.

There is a well known saying, “One man’s loss is another man’s gain” and this can be applied to the procedure of property repossession. When a person’s home is repossessed, they will have the pain and suffering of losing their property following eviction. The property will typically be auctioned at a cheaper price, which is ultimately where the gain comes in for the new buyer. The new buyer will usually buy this property at a repossessed property auction.

Repossessed property auctions are becoming more and more common. They are being held regularly across the country as investors or potential buyers are taking advantage of bargain prices of property. Due to the fact that lenders will be looking to sell a property quickly in order to recover losses, the best place for them to sell is at a property auction. These ensure a house can be sold quickly as the entire process from bidding to exchange can be completed within a month. The other advantage for the sellers is that there are no refunds, so you cannot change your mind once the hammer is down.

Repossessed Homes UK has put together a list of auctions located by region. This means that you can find repossessed property auctions local to you. Simple click on the regions on the bottom right to find links to auctions categorised by area. It’s worth contacting the auction to find out when the next auction is and try and obtain a list of the properties due to be auctioned. This means you can carry out full research so that you are prepared when arriving at auction. Be familiar with the bidding process and make sure you are aware of any fees involved.

Read our guide on Buying A Repossessed Home at Auction to pick up info on how to go about buying repossessed homes.

Another good place to pick up repossession properties is by contacting your local estate agency. They often work in conjunction with auctioneers to put together auction events and sell local property – often repossessed houses. Maybe try getting to know a local estate agent in the area you are thinking of buying in. See if they can contact you once they come across any bargain properties before they go to market and therefore you can get in there first.

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BBC Report: UK House Repossessions Eased in Spring

Friday, August 14th, 2009



BBC News have reported a decrease in homes being repossessed in the second quarter of 2009. However, it’s important to note that this does not mean that problems are over, and repossessions will decrease. As record numbers of people are being made unemployed, it’s expected that the number of repossessions will only increase as the year goes on.

The number of homes repossessed in the UK fell 10% in the second quarter of the year compared with the previous three months, lenders say.

But the 11,400 homes repossessed was a rise of 14% compared with the same period the previous year, the Council of Mortgage Lenders (CML) said.

The group said early advice for struggling owners, low interest rates and tolerant lenders were helping.

But rising unemployment could soon leave more householders in difficulty.

Low interest rates also meant that the number of homeowners falling behind with their mortgage payments had also levelled off.

The number of home loans with arrears of more than 2.5% of the mortgage balance in the second quarter of 2009 was 205,600. That compared with a total of 203,900 at the end of the first quarter, and 139,700 at the end of the second quarter of 2008.

However, separate figures from the Ministry of Justice gave a hint of a future rise in repossessions in England and Wales.

The number of repossession actions started in the courts bounced back in the second three months of the year, rising by 10% compared with the first three months of the year to 26,419.

The number of repossession orders granted by judges also rose over the same period, up 16% to 19,123.

Homeowners can still negotiate with their lender at this stage of the process to stay in their home. Nearly half of these repossession orders, 46%, were suspended as judges allowed borrowers to negotiate a deal with their mortgage lenders.

Read the full BBC article here

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UK Houses Repossessed

Tuesday, August 4th, 2009



The total number of UK houses repossessed in 2008 is estimated to be in the region of 40,000. This is already a high figure and the numbers for 2009 are expected to be even higher according to the Council of Mortgage Lenders.

The number of homes which were in arrears on their mortgage payments has also increased year on year, with an estimated 220,000 homes in arrears of over 3 months at the end of 2008.

The Council of Mortgage Lenders which produces these figures state that the number of houses repossessed in 2009 will exceed the 2008 figures with the global ecomonic crisis and credit crunch affecting more and more homeowners.

With unemployment figures rising and the number of people expected to lose their jobs over this year due to increase, it is expected that 1 home will be repossessed every 10 minutes in the UK.

Affects of Repossession
Property Repossession can affect people in different ways. For the majority it is a very stressful time and usually occurs when coupled with other bad circumstances. For example, loss of job or break up of marriage could be a factor which can lead to someone losing their home. It can also be due to illness or death.

Often people are forced to move in a hurry once evicted and this upheavel can also add to the emotional stress of the situation. This will not only affect the homeowner but also their family as well. Children are often the biggest victims as they are forced to move to a new environment, often a new school with no clear idea of why this is all happening. Parents are embarrassed to face their children as well as their families and friends and explain the situation they are facing. Repossessions can also lead to the break up of marriages and the breakdown of relationships, so its important to know where to go for help.

Many companies advertise that they can stop repossession etc and help your situation, but often these organisations are just trying to benefit further from your awful circumstances.

Although mortgage companies are often sympathetic to certain situations, failure to meet these payments will result in houses being repossessed.

If you are facing repossession, Repossessed Homes UK can help you on advising what to do by providing free information and advice. Our Links and Advice section is also a good source of accessing info on companies who can assist.

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Repossessed Homes: House Prices to Recover Slowly

Monday, August 3rd, 2009



House prices in England will fall this year and next before recovering, the National Housing Federation forecasts.

It expects prices to fall 12.2% in 2009 and 4.6% next year, before stabilising in 2011 with a 1.1% rise and continuing to climb in the following years.

It predicts that, by 2014, house prices will be 20% higher than current values.

But the group, which represents housing associations, said English homeowners who bought at the market peak could be in negative equity for five years.

Although five-year forecasts can be unreliable, the group said that not enough homes were being built.

Price predictions

The group has suggested that house prices would fall sharply this year. This was in stark contrast to the view of the Nationwide Building Society which this week said there was a “reasonable chance” that prices in the UK could end the year higher than they started 2009.

The reversal in 2011 would accelerate in 2012 with a 7.5% increase in prices, the NHF said, followed by rises of 8.4% in 2013 and 6.8% in 2014.

That would mean that English homeowners who bought at the height of the property boom would be in negative equity until 2014.

“Our research shows that, while house prices are falling in the short term, they will inevitably increase in the long term because of a fundamental under-supply of housing,” said NHF chief executive David Orr.

Only 60% of new homes required to be built each year were being constructed, the NHF said.

The group said that many young and lower-income people would remain locked out of the housing market until restrictions on lending by mortgage suppliers eased.

Visit the BBC site to read the full article.

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REDC Repossessed Homes Auction

Monday, August 3rd, 2009



It’s fast, furious and could be the future of property buying. Hundreds of houses went under the hammer in the region’s first property auction dedicated to selling repossessed homes and repossession properties.

Prospective buyers were hoping to pick up a bargain during bidding and hopefully turn their house into a home. Plush semi-detached homes which could have been expected to sell at £120,000 were sold at a fraction of their value.

The auction was being run by American organisation, REDC (Real Estate Disposition Corporation). Most properties are selling for around half the price at which they’ve been valued and advertised by estate agents for the last six months. A top table of lenders sits just below the auctioneer, giving each final bid the thumbs up or down.

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How To Avoid Property Repossession

Sunday, July 19th, 2009



I found a great article from Wiki How on Avoiding Property Repossession:

Repossessions are starting to become common. Last year 17,000 homes were repossessed, the highest number for five years, with further rises predicted for the coming year by the Council of Mortgage Lenders.

A rise in property repossessions means that bailiffs will be kept busy – so what can you do to stop the bailiffs coming to your house uninvited? This will depend on how bad your situation is, but even if you have been handed a court order, and proceedings for repossession of your home have been started, there are still ways that you can deal with the situation.
If you are, or someone you know is facing repossessions, this article will help to enlighten you with the options that you have.

Steps

1. Falling behind on payments
(A) Lenders will normally only start to take action if you miss payments for two months – if you are having difficulties, the best thing to do is let your lender know and see if you can come to an arrangement with them.
(B) If you fail to come to an arrangement with your mortgage lender, they are most likely to send you a letter from their solicitor demanding payment, before issuing repossession proceedings with the county court.

2. Repossession proceedings
(A) By attending the proceedings, you may be able to come to some arrangement with the court and your lender. However, if you do not attend, the court will have no alternative but to order repossession.
(B) If you can make an offer to keep paying your monthly installments, plus something towards the arrears, the judge may be satisfied with this, and grant a Suspended Order For Possession.

3. Bailiffs
(A)If you have made no acceptable offer for repayment, or defaulted on a Suspended Possession Order, then your lender has the right to seek repossession of your property. In this situation, a court order will be granted, and a date will be set for a court bailiff to visit your property to formally take possession. You will normally be given just 10 minutes to pack your things and get out.

At any point in the process, before the bailiffs arrive, you still have a number of options to solve the problem. These are:

*Negotiate repayment – If you can afford to pay make your normal monthly mortgage installments and pay something towards the arrears, the lender may be able to agree to this.

*Pay off all of the arrears – Your options here are to borrow money from friends or family, or from another lender. It is important to be careful here though, if you can’t afford the payments on a new loan, you may have more lenders chasing you for money.

*Remortgage – Some mortgage companies may be willing to remortgage if your house is worth more then your outstanding debts.

*Sell your property – You could do this through an estate agent, which would probably get you the best price for your house, though there are downsides – it could take many months to find a buyer and complete a sale, and you may even need to spend money on your house to attract buyers, also bear in mind many buyers pull out due to broken chains.

*Sell your property fast – A fast cash buyer will normally offer you between 80% and 85% of the market value of your property, but they will give you a fast sale, completing the exchange of contracts in a very short time frame.
If you are facing a repossession order, this could be the answer. In addition you can sell and rent back your property, avoiding the hassle and stress of finding somewhere else to live.

Tips

* You can possibly sell and rent back – this is a great way of no one ever finding out that you sold your house.

Read the full article here.

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Repossessed Homes UK: £50 Council Handout To Ease Recession Pain

Thursday, July 9th, 2009



Manchester City Council are to investigate the idea of paying homeowners’ “cashback” in an attempt to help them through the credit crunch and ultimately avoid repossession. Each household could be given £50 each to help through the recession. Many people in the UK are currently stuggling with mortgage repayments and with tnis extra money coupled with other government initiatives to help people with repossessed homes, this could ultimately help in stopping their home from being repossessed at a time when every penny counts.

This decision has come as local authorities throughout the UK are drawing up measures to stop unemployment soaring and stop businesses from going under.

This “cashback” initiative would mean that every household in the city would receive a cheque or get a one month reduction in council tax bills. The scheme was initially proposed by the Lib Dems and subsequently, the Labour government agreed to investigate the idea further. A report into the feasibility and cost-effectiveness will be drawn up next week.

A similar scheme was tested in London, but proved to be too expensive, and with 200,000 households in Manchester, the total amount of cashback paid could be £10 million. Would it not be better to spend this amount on a project which would benefit the whole community.

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