House repossession at an all time high

stop repossession

According to recent figures, the amount of UK house repossessions has risen by 48% in the first half of 2008 to all time new high. 18,900 homes have been repossessed by mortgage lenders when the owners couldn’t make mortgage repayments. This figure is apparently 0.16% of all mortgages in the UK.

The Council of Mortgage Lenders have predicted that around 45,000 houses will be repossessed by the end of 2008 due to borrowers struggling in the current financial climate to make payments.

But the financial services authority has warned lenders that some mortgage lenders are being far too eager to take borrowers to court.

CML has said that the current data is still low compared to the entire mortgage market and is only half of what is expected from the early 90’s housing market crash.

Mortgages that are three months in arrears or more have risen by 29% year on year making 1.33% of all home loans and mortgages with more than 6 months in arrears is 0.58% of all loans.

Click here for more information on how to stop repossession and cash for property services.

Top tips for selling your property

In today’s blog post we will look at some handy tips for how to prepare and sell your house quickly.

sell house fast

1. Research the market.

Before putting your property on the market, you should sit down and consider your target audience. Who do you want buying your house? Once you have decided, you can make your property appeal to a certain audience. For example turning an office into another bedroom will help target families.

2. Clear up the house

This seems obvious to have your house tidy for people to come and look at it, but not for the obvious reason of simply being tidy. Potential buyers need to be able to imagine themselves in a property and things like family photos and unique pieces of furniture will spoil the illusion for them. Buyers need a relatively blank canvas to be able to imagine themselves in the setting.

3. Clean up and freshen up.

If your house is looking a bit old and run down, a new coat of paint in some of the rooms can do wonders. Replace broken fittings that make the property look bad, but if you do not have the funds to redecorate much then cleaning up should be a high priority. Everything in the house should be spotless and inviting, including your toilets and cupboards.

4. Spread the word

Sometimes word of mouth can be the best way to sell a property. Tell all your friends and neighbours, someone you may know could end up buying your house taking a lot of the stress of viewings out of the equation.

5. Choosing the right buyer

Sometimes the person offering the most for your property may not be the best offer accept. You and your estate agent should look into the persons circumstances before accepting. A person offering a bit less but with no chains can be an all round better situation than someone offering higher but with lots of ties.

6. Using a “Quick sale” Company

Whatever the situation, you will sometimes need to sell your property quickly. A lot of companies offer cash for property but will offer considerably less than if you sold your property through traditional estate agents. But these deals can often be ideal if you need to sell your house fast, need to stop repossession or do not have the funds to fix up your house

Selling your house quickly

If you are having trouble paying off your mortgage and maybe even facing a repossession hearing then you need to get hold of some money quickly. This can obviously be a case of borrowing money from someone you know or taking out a loan, but seeing as you are in financial problems already, these are probably not advisable. Another solution is a quick property sale using a company that will quickly and efficiently buy your house off you giving you financial freedom.

If you need to sell your property fast it is best not to go for the traditional method of using an estate agent, as we are all too aware that this can be a long and costly process, which is something you cannot afford to do if you are having difficulties.

Whereas an estate agent can get you a good price for your property, it doesn’t guarantee a quick deal that will offer you cash for property.

The best way to arrange a fast house sale is to get in contact with one of the many Cash for property specialists that are out there, these companies often guarantee to buy your house, completion of the sale within a short set time, no estate agent fees and a cash sale price. These companies will also offer services such as sell and rent back, this is where they will buy the house off you, which releases the equity of the house so you can clear your mortgage arrears and then rent the property back off the company. This stops you from having to introduce the stress of moving your family into another home, let alone finding a new home.

cash for property

The 5 stages of repossession

Facing repossession can be one of the most traumatic times in any home owners life. So we have broken down the process into 5 stages to help you cope and prepare.

Stage 1
If you miss more than 2 months of mortgage payments then your mortgage provider may start the repossession process. But in most cases they will contact you and try to come to an agreement where the arrears will get paid without the need for legal action and will stop repossession.

Stage 2
If these conditions are not met and you still don’t pay then the mortgage provider or their legal team will write a warning of legal action, they will then apply to the court for a repossession order.

Stage 3
The court will make a summons, which is where the court will “summon” you to court, providing a date and time for your hearing. At this point you should contact a legal professional and reply to the court as it may harm your case if you don’t.

Stage 4
The next stage of the process is for you to attend the hearings, if you fail to do so, the judge will more than likely award the possession order against you as you have failed to give evidence. When you go to your hearing the judge will listen to evidence from both you and your mortgage lender and the make a decision on an outcome. These are the following possibilities.

Case dismissed – this happens if the arrears have been paid off so the repossession stops.
Case adjourned – This is when the hearing is postponed for a whatever reason, meaning the hearing will be rescheduled for a later date
Suspended Possession Order – If you agreed to pay the regular monthly payments as well as an amount towards the arrears for each month, then the judge can suspend the possession if he is convinced that you can make these payments. If you default on the agreed terms, the lender can seek possession by eviction or possession warrant without a further hearing.
Possession order – This allows the lender to take possession of your property after the possession order date. This result usually comes about if the judge finds out you haven’t contacted the lender or the court, or if he believes you cannot afford the payments you have agreed to.

Stage 5
If you don’t make the payments agreed to in the Suspended possession order or you have not moved out after the possession order date, the lender can apply for a warrant of eviction notice. This means you will get a letter telling you, that you have 7 or 14 days to leave the property. On the date you are meant to leave a bailiff will arrive to take possession.