Stop Repossession Today

Debt Matters

noreply@blogger.com (Repossession) — Tue, 14 Apr 2009 18:15:00 +0000

The subject of debt is seemingly always in the newspapers. In recent months we have heard of the troubles that have hit the non-conforming mortgage market across the Atlantic – Or closer to home the financial problems that seem to blight the majority of football clubs in the country.

There are growing concerns of the levels of consumer debt that is prevalent across the United Kingdom – Amongst the highest in Europe. The culture of buy now and pay later seems to be growing stronger year on year.

There is no doubt that debt is a serious problem that affects many people from all walks of life throughout the United Kingdom. With imminent interest rate rises throughout the rest of the year, stark warnings have been issued as to the immediate impact to borrowers and indeed the future economy as a whole.

Despite recent dips, consumer debt continues to remain at high levels and serious concerns have risen up to do with the ability of borrowers to repay outstanding loans and Credit Cards.

Serious questions have been raised as to the way in which lenders assess a borrower’s eligibility to obtain credit. The new buzzword in relation to this is ‘Responsible Lending’ – A concept in which nearly every lender claims to adhere to. Although what does Responsible lending actually mean? It seems that this is just a smokescreen for a currently larger buzzword, ‘Affordability’.

It is recognised across the board that the level of debt was actually helping to reinvigorate the UK economy. The UK domestic product is driven consumer spending – If this slows down then the knock on effects will cause widespread problems across the economy as a whole.

It is clear that a certain amount of debt within the economy is good for business. However, despite slowed growth, the fact that individual debt is continuing to grow, consuming a larger amount of borrowers and leading to increased bankruptcies, insolvencies and property repossessions is a worrying sign that looks far from being just a temporary glitch.

The one thing that all parties are agreed on is that change is needed and change is imminent – Whether this is through better education or firmer regulatory controls of the credit and debt solutions industry.

Protection For Mortgage Payments

noreply@blogger.com (Repossession) — Tue, 14 Apr 2009 18:13:00 +0000

It is not only important for a borrower to protect the repayment of the outstanding capital balance on their mortgage in the event of death, it is also very important to protect the payments of both the interest and capital against a breadwinner’s loss of earnings.

The loss of an individual’s earned income may typically arise through accident, sickness or redundancy. Regardless of the underlying cause however, the effect can be devastating for the family as a whole which could ultimately lead to the property either being sold or repossessed.

Statistically, the absence of work due to both unemployment and redundancy are, alongside divorce and separation, the major causes of mortgage and loan missed payments and arrears and of course subsequent property repossessions.

There are two main types of protection policies which are designed to provide assistance to a borrower who has for example fallen ill or had an accident preventing them from working. Permanent health insurance (PHI) is commonly used to protect an individual against the inability to work due to accident or sickness and thus provide an income in times of such needs. It is perhaps more common for a borrower to take out ‘ASU’ cover – Accident, sickness or unemployment. An accident, sickness or unemployment policy is generally designed to provide cover over the shorter term.

It is possible to arrange ASU polices in a number of ways. By shopping around independently, by taking out cover provided by a mortgage or secured loan lender or by taking it out through a mortgage or loan broker. Today many accident, sickness and unemployment policies are often branded as Mortgage Payment Protection insurance. This type of insurance contract will usually cover the monthly mortgage payments in full and depending on the quality of the policy, may also provide an additional level of benefit of benefit to cover essential bills.

Although uncommon, it is also possible to arrange both Permanent Health Insurance and accident, sickness and unemployment cover in conjunction with one another. In this way, the deferred period of the PHI contract will usually be set at one or two years to coincide with the end of the payment on the ASU policy.

In recent times, the need for borrowers to protect themselves in this area has increased due to the governments reduction in the level of income support for mortgage interest payments which is a state benefit. There has subsequently been strong lobbying be many within the mortgage industry to make ASU policies compulsory. At the time of writing however this is not the case and most mortgage lenders will only insist on a borrower taking out a suitable Buildings insurance policy as standard.

Repossession The Rights And Wrongs

noreply@blogger.com (Repossession) — Tue, 02 Oct 2007 13:58:00 +0000

Buying a new car or home can be so much fun You pick out the colours, the style, and all that goes with it. You sign up for a loan and leave feeling accomplished. However, when signing up for a loan or a credit card you may not be aware that if you do not pay, your belongings could be repossessed. It can happen to anyone and it is important that you know what can and can not be taken in the event that you do fall a few payments behind. Understanding the laws can greatly help you avoid repossesion and protect you from being taken advantage of throughout the process of the loan.

Not all items can be repossessed. Land, for example, can not be repossessed in most cases. The only way that land can be repossessed is if the contract includes a grace period. This grace period is a time frame in which every payment must be made after a late payment is incurred. If you do not make the payment within this grace period then the land can in fact be taken back by the original owner. Do seek proper repossession advice.

If you are out of work for an extended period of time and are unable to make payments notify your creditor. Sometimes your contract will include Credit Accident and Health Insurance. This insurance will pay the debt that you obtain while you are unable to make payments. Usually this insurance only comes into effect when you have been sick for more than two weeks. It is important that you check whether or not you have this insurance prior to being unable to make payments because if you do not have it, those missed payments could cause that item to be repossessed.

A repossessor can not come into your home without your consent. This means if you see someone trying to break into your home, garage or any place where the item in question is being stored, call the police. Even if someone claims to have legal documentation which states that they can take the item, it is best to contact a lawyer.

If your property is repossessed then you will not be required to pay for it afterwards. The only time you will need to make extra payments is if the property seized was an automobile. Since the creditor will be selling your vehicle for the best price they can get, you will have to pay the difference that is lost in the sale. Any extra money that the creditor earns from completing the sale must be awarded to you. Sometimes the creditor will sell the vehicle for an extremely low amount in order to get money from you. This is illegal and should be reported immediately to your lawyer.

Understanding repossession laws can save you the trouble of trying to regain your property in the unfortunate event of repossession. It is much easier to prevent your property from being repossessed than to try and get it back. Be aware of the laws and make sure you get some repossession help quickly.

Stop Repossession At An Early Stage

noreply@blogger.com (Repossession) — Mon, 21 May 2007 08:52:00 +0000

When you first buy a home, you never think for one moment that you wont be able to pay the mortgage payment on time each month. No, most people buy homes with full intentions on paying their mortgage payments on time! However, that is not always possible for many homeowners.

Home repossession is a terrible thing and one must never go through it if he or she has a choice. If you are one of those people whose homes are in danger of being repossessed by the bank, do not just give up and hand in the keys. Always remember that this is your home and you must do everything that you can to save it.

The best way to stop repossession is to take actions at the earliest stage. When you start falling behind your mortgage payments, do not just give the bank a silent treatment and pretend that everything is alright.

In fact, when you receive the first collection letter from the bank, write a response at once explaining the situation. If you have been ill and you have not been able to work for sometime, tell the bank exactly what happened and promise them that you will keep up with the payments as soon as you feel better and have started to work again.

Give the bank a clear timeframe as to when you will be able to resume paying your amortization so that they will have some ideas what to expect from you. Always bear in mind that a bank is a business establishment and it needs to know when you will be able to give them their money. Once the bank has an idea as when you will be able to pay, it will be more willing to give you the grace period that you need.

In the event where your condition does not improve within the time that you said it would, it is best to inform the bank of the situation together with your proposal as to how you will repay the bank of your mortgage arrears.

For instance, you might want to inform the bank that you wished to lease some of the rooms of the house so that you can use the proceeds thereof to pay for your amortization. This can be a good way avoid repossesion.

Clearly outline in your proposal how much you will be able to earn from leasing some of the rooms of the house so that the bank will have some ideas on how much money is coming.
If the proceeds of the lease is a bit lesser than your monthly amortization, you will need to request the bank for a reduction of your monthly amortization until such time when you are able to get back to work.

Now, banks are not really out to snatch your home under your nose, they just need to know that it can recover its money so you need to communicate your plans to loans officer. If you keep constant communication with the banks loan officer, this will show them that you are serious about repaying your debts stopping bank repossession.

Help With Repossession Is Available Today

noreply@blogger.com (Repossession) — Mon, 14 May 2007 07:39:00 +0000

Many borrowers will take any reasonable course of action to save their homes from repossession - especially when there are children involved. The process of attending Court for a home repossession hearing can be a timely and expensive exercise and should be avoided at all costs.

If a property is ultimately repossessed then the lender will endeavour to sell it on as quickly as possible in order to recoup all monies owed. The lender has a duty to the borrower in this instance to achieve the best possible sale price however it is all too common that many repossessed properties end up being sold well below the market value.

Subsequent to the lender gaining possession of the property, the borrower is still liable for all interest accrued right up until the point of sale.

When a repossession order is granted, an eviction date will be set. The eviction date will usually give the borrower six weeks to vacate the property.

This whole process can be avoided! Contact the team at Stop Repossession Today and let us assess your circumstances to see if we can assist you.

We give priority service to every enquiry and promise to contact you straight away following your online submission. Alternatively, contact us on the Repossession hotline at the top of the page.

Repossession Help

noreply@blogger.com (Repossession) — Wed, 02 May 2007 14:40:00 +0000

Have you been threatened with court action and reposession if you do not clear your arrears? Do you have a court date set for your hearing? Are you anxious to find out the solutions open to you?

If you have answered yes to any of the above questions then help is at hand!

It can sometimes be difficult trying to negotiate a payment plan with your mortgage lender to clear the arrears and stop repossession when it seems that they are more concerned about retrieving their money rather than anything else.

The option of increasing the monthly mortgage payment to reduce and ultimately clear the arrears is a fine solution to those who can afford it the increase, but what if you are unable to?

Again, another possible short term solution might be to switch your mortgage from repayment to interest only, but what if you are already paying Interest only on your mortgage?

If you feel as though you are unable to approach your lender then you might wish to speak to an impartial qualified mortgage advisor for help.

If you have available equity in your property and you can satisfy affordability criteria then it is highly likely that you will be eligible for a repossession remortgage - despite whatever stage your repossession proceeding!

By switching lender, redeeming your mortgage and arrears balance, you could even reduce your mortgage repayments thus allowing you to get back on your feet.

An Overview Of US Repossession

noreply@blogger.com (Repossession) — Wed, 25 Apr 2007 12:38:00 +0000

When you face repossession of your home or your car, you may need to declare bankruptcy to save them. If creditors have a valid lien or mortgage on either your vehicle or you real estate filing bankruptcy will temporarily stop any reposession process. If you have already had your car or home repossessed (foreclosed on, in the case of your house) you may still be able to get either or both back if you act right away.

If you file a chapter 13 bankruptcy you should be able to keep your home and your car. If you file a chapter 7 bankruptcy you will keep both for awhile but you might ultimately be faced with repossession for liquidation. Depending on which U.S. state you live in, and what the state laws say about the matter, the trustee of that bankruptcy may be charged with liquidating both your car and home to pay your debts.

Declaring bankruptcy, while it can halt or at least slow down the repossesion process should not be looked at as the preferable cure for your financial problems. While it is one course of action – and if it gets to the point of repossession drastic action would be required to save your home and vehicle – it’s always best to try to salvage the situation through debt consolidation, loans or negotiation with your creditors. Bankruptcy will give you somewhat of a fresh financial start but it can have consequences almost as grave as repossession.

The fact that you had a bankruptcy will be on your credit record for ten years, and that is a matter of public record, unlike your other credit history. If you should run into similar financial crises and subsequently repossession possibilities you won’t be able to again declare bankruptcy for another eight year.

There are two types of bankruptcy, as we mentioned before, that will help you keep your home safe from foreclosure and your vehicle from repossession. A Chapter 7 bankruptcy is a short term band aid whose help depends on your home’s equity and that state’s laws on homesteading and personal bankruptcy. If you file for a Chapter 13 bankruptcy, however, not only will it stop that repossession and foreclosure but it will more than likely save you from losing your home at all. With a Chapter 13 bankruptcy you will make arrangements to pay some of your debt and generally all of your debt on any secured loans.

Chapter 13 is sometimes called a wage earner bankruptcy because it lets debtors who have their own consistent income create a financial plan to repay at least a portion of their debts. With a typical Chapter 13 the debtor ask the creditors to accept installment payment for three to pay years. During this time frame these creditors are legally restricted from continuing collection efforts or starting any new ones.

The debtor’s level of income and the type of bankruptcy determine the time allowed for repayment. The primary benefit to choosing a Chapter 13 over a Chapter 7 is to save a home and car from repossession. This is in sharp contrast to a Chapter 7 bankruptcy in which a trustee takes repossession of all or most of the debtor’s property and liquidates it to settle debts. Once the possessions are sold and the money paid to creditors, all debts are erased whether there was enough money to pay them off or not. There are some exceptions, of course. Bankruptcy will not protect a U.S. citizen from the IRS.

Stop Repossession Today help UK homeowners to avoid repossession and keep their homes.

Mortgage Repossession

noreply@blogger.com (Repossession) — Fri, 13 Apr 2007 17:13:00 +0000

Mortgage repossession is a devastating thing. Having your home swept out from under you is not only a financial crisis. It can be an emotional one as well. In the UK, however, there is a piece of federal legislation that prevents mortgage repossession from actual making a person or family homeless. The law is called the Prevention of Homelessness Act, and protects residents of England and Northern Ireland.

It says that if a person or family occupies a dwelling and it’s their principal and only home but becomes subject to mortgage repossession or any adversary tenant eviction proceedings, the court can suspend that eviction or mortgage repossession order to give that person or family time to find a reasonable alternative place to live.

The law says that the application may be made by the person who is subject to mortgage reposession or tenant eviction prior to that action being taken. Where a person occupies the home as her, his or their only dwelling the court has the power to suspend the repossession or eviction enforcement for any period and under any conditions that the UK court sees fit to impose.

The criteria given the court for this mortgage repossession or tenant eviction protection is very lenient. In fact, it almost just says, “do what you think is right, judge.” The legislation stipulates that a court can decide to suspend the repossession for mortgage arrears or eviction for unpaid rent to prevent the person or persons residing there from “sleeping rough” or having to live somewhere not reasonably fit for any habitation by humans.

The definition of mortgage repossession or landlord or tenant repossession proceedings is defined as litigation begun in a court of the United Kingdom by the lender or landlord for purposes of recovering possession of property that is occupied by the debtor or tenant as her or his main or sole residence.

One portion of this homelessness prevention bill talks about variable interest rates, and gives the court the power to actually change the rate of interest that the debtor is paying on the mortgage if that is a reasonable thing to do to prevent repossession and homelessness. There are some stipulations built in, however. The rate of interest that the court alters the mortgage to cannot be less than that applied by the UK federal Department for Work and Pensions (must like Social Services and its Section H housing assistance in the U.S.) .

The Prevention of Homelessness Act also allows the court to put into effect a waiver of charges and fees in the interest of trying to ward off a mortgage repossession. These fees waived could include legal and court costs including the expenses incurred by the debtor for an indemnity clause.

The legislation further stipulates that should someone become eligible for, and acquire public assistance, the payment of the mortgage, to prevent repossesion might also be paid out of the public assistance check awarded, at the discretion of the court.

Clearly, in the UK, the government has seen fit to protect the interests of homeowners and tenants and assure that they keep their homes wherever and whenever possible.