As a property owner, you’re unlikely to want to dwell on the issue of property repossessions. But in a world where finances and circumstances can change and tumble beyond our control, it’s best not to bury your head in the sand – especially if things aren’t going to plan financially. In fact, by being aware of the facts about property repossessions, you could even help save your home from being repossessed.
When you take out a mortgage on a property, you’re responsible for fully repaying it as per the terms of the agreement. If you regularly find that you’re falling short of income and are missing making your repayments, then your mortgage lender has the right to start repossession proceedings to take back your property.
Contrary to misconception, a house can’t be instantly taken away, so if you are at risk of facing repossession, you do have time to get help or seek advice before you get to court. If you receive notification that you’re in debt with your mortgage repayments and your lender is taking action, good first ports of call for help and advice are debt charities such as Step Change or Citizens Advice.
In an ideal scenario, you might be able to work out a way of dealing with your debt problem and negotiating a satisfactory re-payment plan with your mortgage lender and avoid getting to the stage of having to go to court.
If you do end up going to court and having your property repossessed, your mortgage lender has a legal duty to sell the property for the best price they can achieve and it will be put on sale as soon as possible. Whilst it’s waiting to sell, you’ll still be charged interest on your mortgage, so the debt can increase.
If the property sells and results in fully replaying the lender all the debt – interest, plus costs – that is owed, your debt is gone. And if there’s any money leftover from the sale after all the fees have been paid, they’ll return it to you.
If, on the other hand, the property sells at a loss and doesn’t recoup enough funds to fully pay off all your debt, you’ll end up with a shortfall debt. This means that you could still be liable to continue to pay off the debt until it is fully cleared.
How to avoid property repossessions
Going through a property repossession can be a traumatic experience, but one way to avoid it is to take control and sell your property yourself, before it gets to the point of being repossessed. This is especially the case if the property is likely to be worth more than the amount you owe, as it gives you the opportunity to profit from it. You might not be keen on selling, but it’s a better option than having the control completely taken away from you. And if you hang on to it for too long, you run the risk of owing more than the property is worth.
As you may well know, the traditional estate agent process of selling a property isn’t always quick and you can’t tell how long you’ll need to wait to gain a sale, so it’s not an ideal method for avoiding property repossessions. That’s where specialist companies such as Molae Properties come into their own, as they can offer an instant price on your property and ensure you get a quick sale. No hanging around waiting for the right buyer to come along and no long and uncertain property chains – just a quick, efficient sale so you can move on with your life and clear your debt.
If you live in London or within the M25 and need to acquire a quick sale on your property, whatever the circumstances, contact Molae Properties today for your cash offer and take a look at the testimonials from satisfied customers. Don’t stick your head in the sand and try and ignore the danger of repossession – it’s real, and it won’t go away without some form of action on your behalf.