Knowledge truly is power, and educating yourself about a subject unfamiliar to you can help remove the fear of the unknown common to borrowers who find themselves facing the possibility of having your property repossessed. If you’re struggling to make your mortgage payments, taking steps to understand the process will help you plan your next move before repossession occurs.
Being forewarned is to be forearmed, so here are three things you need to know about repossessions in the North East.
Before Repossession
The first thing you need to know about property repossessions in the North East is that the sooner you act the better. Your mortgage provider can’t take legal steps without pre-warning you, so you have a chance to get on top of the issue before it escalates. What you shouldn’t do is bury your head in the sand and hope the problem goes away.
Therefore, if you’re having trouble with your mortgage payments, it’s best to take action now. Citizens Advice is a great starting point, or you can speak directly to your bank. On the other hand, if your circumstances have permanently changed, and it’s unlikely you’ll be able to catch up with your missing mortgage payments, you have two options.
You can speak to your lender about refinancing, or another option is to sell the home to a direct buyer like We Buy Homes North East . Unlike with a traditional listing where you’re left to hope for a buyer, we offer a guaranteed completion date, which could be in as little as one week.
Repossession
In essence, once a borrower reaches a predetermined number of missed payments, a repossession is the formal legal action taken by the lender to collect the debt for the property.
While you will be able to remain in the house until the repossession is final, at that time, if you have not yet moved to a new property, you will face eviction proceedings.
If you reach this point on your the North East property, you’ll have very little time left to remain in control of what happens to your future. This is where We Buy Homes North East can help. Even if you’re close to being evicted, our property experts will be able to advise you on what steps you can take, and purchase your property at short notice.
Aftermath
If your home is repossessed, it will have a negative impact on your credit rating for many years and will affect your ability to get a mortgage again in the future, or any form of credit, such as a credit card.
In addition, because your property will be sold at auction, it’s likely to sell for less than the market rate, which could leave you with a deficiency balance.
What this means, is that if the sale price of the house doesn’t cover the remaining balance of the mortgage, your lender can still take legal action against you for the remaining balance.
A direct sale to a professional investor like We Buy Homes North East will save you from all of the costly consequences of repossession.
We Buy Homes North East
Don’t hesitate to get in touch with us if you’re facing repossession. The professionals at We Buy Homes North East understand that circumstances change beyond our control, and we have years of experience helping people just like you who were facing repossession in the North East.
The offer you receive from We Buy Homes North East is for cash, and there are no commissions, hidden fees or closing costs to come off either.
If you still have time to list your home with an estate agent, we can give you a good idea of how much you’re likely to receive in comparison with a direct sale to us, by giving you a detailed breakdown.
And remember, if time is of the essence, we can complete on your property in as little as one week.
Contact We Buy Homes North East today on 0191 369 2088 to learn more.