How to stop repossession
It's not too late, even
hours before an eviction, to act to stop repossession. We can work with you to
find the most suitable solution to suit your goals and situation. And we act
quickly.
We understand you'll be
facing difficult decisions about your home. We treat each situation
sympathetically, and know that everybody's case is unique.
Don't give up if you
can't reach an agreement with your mortgage lender to save your home. We can
offer flexible alternatives to help keep you living where you are.
Remember, a call to us
is free. We don't charge any fees for valuations or for assessing your
situation. And you're under no obligation to proceed with any of the solutions
we present to you
Here's how we can help
you stop repossession:
Straight purchase
We buy your house
quickly. This avoids repossession (and credit black listing and a repossession
registry entry). If you raise sufficient funds to clear your mortgage account,
any surplus equity can be released as cash for your immediate use. This can go
towards a new house, rental deposit, or simply help you get back on your feet.
Sale and rent back
We understand that you're likely to be
facing difficult decisions financially and might not want to leave your home, once a sale has been agreed and the contracts have
been signed you have the opportunity to stay in the property as a tenant. Rent
will have been agreed before the sale has gone through so there will be no surprises.
See below under the Rental Agreement section for more information.
Entering into a sale and rent back
agreement can be a positive move to assist you, full details of all aspects of
entering into a sale and rent back agreement will be explained to you in detail
before you make any decisions by a PORT Ventures advisor where they will first
review your personal circumstances and assess your suitability and ability to
be able to afford the rental payment required within the sale and rent back
agreement.
Please Note
Update February 2012
The Sale and Rent Back market has been temporarily closed down by the
FSA pending a full review. As a responsible company we are therefore unable to
refer any of our customers who require a Rent Back solution to companies who
operate in this market, at this time.
We
do however have a number of other solutions available to anyone requiring a
quick sale which may enable you to remain in your property.
Why sell before repossession?
Its rumored that in 2012
6 houses are repossessed every week in Hartlepool alone, banks are forced to
foreclose on property to avoid bad debt on their books which they will be
forced to tell their shareholders.
If repossession takes
place, remember that you are still liable for ongoing costs on the property.
Mortgage interest, legal fees, estate agents fees etc, all accrue until sale by
the lender.
When the property is
sold, the sale proceeds will go to clearing the lenders mortgage account. Any
surplus funds will be repaid to you. However, any shortfall is still your
responsibility and lenders have up to 12 years to recover this from you (5
years in Scotland).
You should therefore not wash your hands of the
property. Take measures to ensure that it is sold quickly and for the best
price.
The Council of Mortgage
Lenders has provided a code which lenders must adhere to in order to be able to
claim any shortfall from you. A recorded delivery letter must be served within
28 days of re-sale. This should contain details of:
The date of the mortgage
deed under which the power of sale was exercised.
The address /
description of the property
The name / address of
the vendor
The name / address of
the purchaser
The sale price for the
property
Whether the sale was by
private treaty or public auction
The completion date of
the sale
Lenders are under a duty
to realize the full amount for the property - however, because they also have a
desire to clear their account / arrears as soon as possible, there is a risk
that the property will be sold under value. This will be at your expense.
Prior to repossession,
you should secure two independent surveyors’ valuations or sales particulars
from estate agents, including the asking price.
You should then take the
following steps:
Do not trash the
property or leave it in a messy / unclean state. Treat the property as if you
were trying to sell it yourself for the best price. Every extra penny you get
will be to your future benefit.
Make an enquiry with the
lender to confirm the date that their estate agent was instructed (if you think
the agent is unsuitable - for example they are not local- or they specialize in
a different sector of the property market, tell the lender in writing)
Make sure a 'For Sale'
sign is put up, and if the agent has a web site - that the property is listed.
Call at the agents to
ensure that it is listed and leaflets are available. Check to ensure that it is
correctly described.
Make sure the agents
include wording such as 'Available for Immediate Occupation' and 'No Vendor
Chain' to stimulate interest
If the listing price is
way below value, set out your concerns in writing. Note - do not demand that
the property be listed at an unreasonable level, especially in a cool housing
market - it will take longer to sell, and your liability for mortgage interest
will simply increase.
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