What To Do If I Am About To Have My Home Repossessed?
With the current economic slump, and recession, the most frightening thing of all is losing the job, and facing the financial insecurity it brings as its outcome. If something like this does happen, you may find yourself at the end of your wit, especially if it was unexpected, and you have not really saved up for the rainy days.
In such crisis, you are not able to make your monthly payments, and meet other monthly expenses. Therefore, people end up losing most of what they have acquired on loans. One such thing is a house, which people end up losing when there is a shortfall in their monthly payments. The issue does not stop here; there is more that will be followed. You will have to look for a place to live, and your credit history would be marred because of this, and would create problem for you in getting any loans in the future.
Once you have a bad credit history, you would be forced to take a loan from the people who specialise in dealing with people with bad credit payment history, these types of loans normally cost more than the usual ones. You would also have to find a way to deal with the outstanding amount on mortgage; it is quite possible that the lender will assist you with the gap in the outstanding amount.
Normally the lenders give a period of twelve months before they can sue you for any outstanding amount under the laws of England. If you are under the voluntary agreement of the council of mortgage lenders, the lenders can come after you after six years. Still, if there is any suspicion of fraud, the lenders may instantly take action to recover the amount.
The most important thing to do in this type of situation is to stay calm, and maintain your senses. Otherwise, you may end up making hasty decisions that would cause you more trouble. Do not think that you are alone; there is always a solution for every problem. Take assistance, once you get them, you would be greatly relieved, and would be able to get out of the situation.
Sometimes people lose heart to such an extent that they cannot bring their selves up to face the lenders. You should not act this way, because it would only cause more damage, whereas the right thing to do is to talk to your lender right away. It is quite possible that he would revise the terms of the mortgage after knowing your problem. Talking to him might prove to be very fruitful. He might change your loan agreement, or reduce your monthly payment for some time, or he may even extend you period of the loan, or may offer you similar perks.
One other thing that can be done is to sale out your house, and then rent it again. However, before taking any such decision, you must always consult your mortgage lender, as they are the specialist in the area, and would therefore give you the right advice.
It might be helpful to get the help in budget planning while going through these crises to better plan on what you can afford. There are a number of helpful organisations for the purpose alone; you might want to find one that would do this free or for minimal cost
In such crisis, you are not able to make your monthly payments, and meet other monthly expenses. Therefore, people end up losing most of what they have acquired on loans. One such thing is a house, which people end up losing when there is a shortfall in their monthly payments. The issue does not stop here; there is more that will be followed. You will have to look for a place to live, and your credit history would be marred because of this, and would create problem for you in getting any loans in the future.
Once you have a bad credit history, you would be forced to take a loan from the people who specialise in dealing with people with bad credit payment history, these types of loans normally cost more than the usual ones. You would also have to find a way to deal with the outstanding amount on mortgage; it is quite possible that the lender will assist you with the gap in the outstanding amount.
Normally the lenders give a period of twelve months before they can sue you for any outstanding amount under the laws of England. If you are under the voluntary agreement of the council of mortgage lenders, the lenders can come after you after six years. Still, if there is any suspicion of fraud, the lenders may instantly take action to recover the amount.
The most important thing to do in this type of situation is to stay calm, and maintain your senses. Otherwise, you may end up making hasty decisions that would cause you more trouble. Do not think that you are alone; there is always a solution for every problem. Take assistance, once you get them, you would be greatly relieved, and would be able to get out of the situation.
Sometimes people lose heart to such an extent that they cannot bring their selves up to face the lenders. You should not act this way, because it would only cause more damage, whereas the right thing to do is to talk to your lender right away. It is quite possible that he would revise the terms of the mortgage after knowing your problem. Talking to him might prove to be very fruitful. He might change your loan agreement, or reduce your monthly payment for some time, or he may even extend you period of the loan, or may offer you similar perks.
One other thing that can be done is to sale out your house, and then rent it again. However, before taking any such decision, you must always consult your mortgage lender, as they are the specialist in the area, and would therefore give you the right advice.
It might be helpful to get the help in budget planning while going through these crises to better plan on what you can afford. There are a number of helpful organisations for the purpose alone; you might want to find one that would do this free or for minimal cost
About the Author:
Edward Woodwards is a financial consultant. You can take help on individual voluntary arrangement and solutions to debt problems. Find out more information at his recommended website http://www.iva.org.uk.