One of the most distressing events that can take place in your life is the loss of your home through Repossession. This article aims to help you answer the question about “How can I stop my Repossession?”. Hopefully this helps to reduce the stress and provides you with the guidance and help you need.
The first step to avoiding Repossession is to set preventative steps. To do this it means not ending up in a position where you have to ask “how do I stop my Repossession“. Some of the common causes that lead to a Repossession are….
Creating a house buying budget that is too stringent.
Many people over extend themselves when buying a home. They use all of their budgeted income just to pay the mortgage. Unfortunately, this means that if unforeseen circumstances do arise, they start to miss mortgage payments. This can extend to other financial obligations such as personal loans, credit cards or car loans, and can be a rapid negative spiral.
Changes in Relationships
Unfortunately married couples do break up. Neither may have the financial ability to be able to take over the mortgage on their own. This can mean missed mortgage payments and letters from lenders.
No job is 100% secure. Layoffs can happen which dramatically change the financial status of the person. Or, a lengthy illness can cause time away from work. Both in combination can have a devastating effect on finances.
Your home may get to the point where major repairs are needed to keep it habitable. The extra financial burden costs this can place on someone can mean you have to make a choice between making a house that is liveable or keeping up a mortgage.
These are just a few of the common circumstances that can lead you to asking how to stop my Repossession. Being aware of them may allow you to plan so you can avoid Repossession.
Actions that could help Stop My Repossession
Delay the Notice of Default Filing
When you trying to stop a repossession, on tactic to try is to delay. The first delay is with the notice of default filing. Talk to your mortgage company/lender to try and get them to stop or delay the filing. They are obliged to file a notice of default first if they want to go ahead with a Repossession. A lot of the stop my Repossession tactics are geared towards creating delays. Hopefully the delays will give you enough time to turn your financial situation around.
Stop Repossession Court Date
If you have already had a notice of default, you may be at the point of having your house repossessed. You could try to work with your lender to stop the date of the court hearing about your repossession. You will need to put together a compelling case outlining why the repossession should be stopped and how you are able to meet your commitments. You can try and negotiate some type of arrangement with your mortgage company.
Can I Sell My House to Avoid Repossession?
This may be another way to stop your repossession. Along with tactics to delay repossession proceedings to allow you to find a solution, another could be: can I sell my house to avoid repossession? The answer very well may be yes if it is worth more than you owe on the mortgage. However, you will have limited time to do this and it is something that you will want to do quickly. Otherwise the lender is going to lose patience. So what are the options to sell my house to avoid repossession? You can sell the property yourself, sell through an estate agent or through a cash sale.
Why a Cash Sale of your House is the Best Option
You have the ability to approach a cash buyer for your home. There are some pros and cons to this. In the right circumstances this can be the best solution for someone who needs to stop their Repossession.
How the Cash Buyer Solution Works
The Pros to Having a Cash Buyer
A cash buyer has the ability to give you full cash for the purchase of your home. This means no waiting for financial approval for the buyer. The sale moves quickly and will satisfy your lender. You don’t have the legal fees that come with a traditional sale. There is no waiting for the right buyer, who can afford your home, to come along. You don’t have to worry about doing any repairs to the home to make it sellable.
Considering the Price
You may also be concerned about the price they are offering you. It will most likely be below market value. This doesn’t mean that you are being ripped off because of your circumstance. There are some things that you need to consider regarding the price:
- You will not be paying estate agent fees.
- You will not have to take on the fees of a lawyer.
- You don’t have to do any quick repairs to make the home sellable.
These are all costs that add up when you are selling a home when you are taking steps to stop your Repossession.
Also keep in mind as to what is going to happen in the case the lender repossesses the property and sells it. The lender is not allowed to make a profit on the house. Therefore he has to sell it for whatever amount of debt is owed on the repossessed property. They will not risk losing a sale in order to get more money for the property that they will need to give to you. The lender wants to sell as quickly as possible so he can recoup his money. This money includes all of the costs of repossessing and selling the property. This can run into thousands of pounds.
You are far more likely to come out with some extra cash from the sale to a cash buyer. However, this will depend on your the circumstances. At the very least you may be able to salvage your credit rating.
Need to Stop Your Repossession?
At K&G Lettings Limited we specialise in quick house sales. We understand that facing repossession is a scary and stressful time for you. We can take the extreme stress away by buying your house. At K&G Lettings Limited, we specialise in buying houses quickly and without hassle. This removes the emotional and financial hassles form facing a house repossession, ensuring you and your family can face the future without fear.
Even if you don’t decide to sell, we’d love to answer any questions you might have. Give us a call today on 01482 961961.
The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.