Repossessions typically occur due to people being unable to pay the mortgage. If this happens for long enough, the lender seized and auctioned to recoup losses. This action normally only favours the bank, leaving you out of pocket.
Another reason for losing a property can be failing to pay council tax. Repositions are such a problem that 1 in 20 UK citizens have been evicted and their homes repossessed.
The most at-risk group to repossession are 18 to 34 year-olds. It most affects this age group due to the mix of not understanding finances well enough to plan effectively and financial turbulence. Many get married, divorced, have babies, and try to have fun at these ages. However, most people do not learn frugality and make wise financial decisions until later on in life.
Don’t Do This!
As soon as you suspect your finances may lead to mortgage or rent arrears, the last thing you should do is be burying your head in the sand. Unfortunately, financial problems are a slippery slope that can get exponentially worse thanks to compounded interest rates and late fees. Evictions are the worst-case scenario, but you still have options.
Contact Your Mortgage Lender
We’ve added this section as people contemplate not telling their mortgage provider of financial challenges. This act is foolish at best as lenders make their money from debt creation, meaning they may decide to refinance to help you and get better returns in the long run.
If you tell your lender within 15 days of going into arrears, they’re also obligated to help you because they have sold you an offering and are the contract provider. As such, there are legal requirements to make sure you’ve not had a mortgage mis-sold.
After all, if you’re failing to pay bank money, did they conduct due diligence when providing you with the package. Many lenders get litigated due to this through class actions.
Be Honest with your Stakeholders
During hard times you need to communicate to all stakeholders promptly. Failing to do this can irritate them and have them not empathise with your situation. As soon as communication breaks down, they’ll start taking formal action to get you out. You need them to give you a better payment plan, and this can only happen if they like you.
Selling Your Home
Before considering the extreme of selling your property, first, get some legal advice. The citizen’s advice bureau (CAB) is a government-based charity that offers this for free in the UK. This facility ensures everyone has access to legal advice even if they can’t afford it.
If you are better off selling after going through all your options, then realise that it doesn’t have to be a long process that drags on. It’s natural to think this as most people opt to use real estate agents and play around with the price until it sells.
As time goes on, however, sellers are not used to waiting for their sell price and may make an offer that’s less. Going through this process means the erosion of your time and equity.
So, what about auctioning the house? Most auctions are for repossessed properties, with buyers buying the property based on very little information. The sale is fast, but the price usually is lower than fair market value.
WeBuyAnyHomeExperts have the answer to your problem and can get money into your account within seven days from initial contact. We are the largest home buyer in the UK and can offer you fair market value for your area without any fee.
That’s right, nothing, you pay us nothing! We don’t charge you for the use of our solicitors, surveyors, estate agents, or every professional. Instead, we make our money through the later sale of the property and integrate these costs into this. This process helps avoid exploiting your need while we risk price appreciation and retail sale price.
The benefit of using WeBuyAnyHomeExperts is that you can help pay your debts from the equity you put into the building. If the property is seized and auctioned, you will likely get nothing after the lender collects. Act first and reduce your risk of losing money unnecessarily for no reason.