Understanding how to prevent the unfortunate event of home foreclosure is crucial to safeguarding your property and avoiding a catastrophic situation. Shockingly, research indicates that a significant number of homeowners lack knowledge on effective strategies to evade repossession.
While most banks and lenders strive to steer clear of foreclosures, the ultimate outcome largely hinges on the actions or inaction taken by the debtors themselves.
Foreclosure happens when mortgage lenders seek legal authority from the court system to confiscate your home as a result of non-payment or failing to properly comply with mortgage conditions. When you sign a mortgage agreement, you give the lender a stake in your house (represented as an interest percentage). Although their share diminishes as you diligently repay borrowed funds, it's important not to overlook their prerogative to pursue repossession if payments are neglected.
This implies that even if you've successfully paid off 85% or 95% of your mortgage balance, there remains a possibility of repossession should timely payment obligations be disregarded. Therefore, it is vital to take preventative action as soon as possible.
Banks and lenders rarely seek repossession orders without first considering all other viable options to resolve the issue. Where a bank chooses to pursue the repossession of a property, the process generally takes place as follows:
Understanding how to stop the repossession of your home through constructive dialogue is essential for all homeowners. Nobody plans to fall into arrears or deliberately fail to meet their repayment obligations; hard times and financial shortfalls often cannot be predicted.
There are various options available to stop a repossession from becoming necessary, which for most struggling homeowners include the following:
Depending on the circumstances of your financial shortfall, your mortgage insurance policy can cover your repayments to avoid home repossession entirely. For more information on short-term borrowing to cover urgent expenses and outgoings like these, book your obligation-free consultation with the team at UK Bridging Loans today.
Clients approach UK Bridging Loans either directly or via introducers. Basic questions by way of a “fact-finding” process are used by UK Bridging Loans to determine if the lending requirements are a possibility.
An immediate yes or no answer is given, and if suitable, a quotation is formulated and forwarded to the client, usually by email.
A formal offer is produced for any client wishing to proceed and forwarded for signature, again, usually by email.
Each client is visited at the security address for the signature of the remaining loan paperwork, including a CH1 land registry charging order. We will also collect any additional pre-requested documentation.
The signed documentation was immediately sent to our underwriters. Our model is based on very quick completions, as each deal is funded using all of our own money. On rare occasions, we may request additional information.
Average completion from initial acceptance to pay-out is usually just a few days. We rarely require valuations or additional legal representation. The land registry charge will be removed once the bridging loan is repaid.
The applicant could be too old to obtain a standard high-street mortgage, as most mortgage lenders now prevent borrowing beyond what is deemed “normal retirement age”.
The property may be in a condition where it is not suitable for mortgage financing, and as such, a bridging loan could be used to complete the purchase and any required work prior to refinancing.
The applicant may have had some adverse credit, however minor, which was previously acceptable to lenders but now no longer fits the high street lending criteria.
The applicant may have difficulty proving the income requirements needed for more regular financing. This may be due to poor self-employment records, a break from work, a reduction in self-employed workloads, or overtime.
Can you stop a house repossession?
Yes, there are a number of things you can do to try to stop your house from
being repossessed. These include:
Can I sell my house if it is being repossessed?
In some cases, you may be able to sell your house before it is repossessed.
This is known as a pre-possession sale. However, you will need to find a buyer
who is willing to pay the market value of your home, even though you are in
financial difficulty. You may also need to pay off your mortgage in full in
order to sell your home.
How many mortgage payments were missed before repossession?
There is no set number of mortgage payments that you can miss before your lender
can start repossession proceedings. However, most lenders will wait until you
have missed a significant number of payments before they take action. This is
because they want to give you the opportunity to resolve the issue before it
gets to the point of repossession.
How quickly can a bank repossess a house?
The process of repossessing a house can take several months. However, it can
happen more quickly if your lender decides to apply for an immediate possession
order. This order will allow them to take possession of your home without having
to go to court.
Do you still owe money if your house is repossessed?
Yes, you will still owe money on your mortgage even if your house is repossessed.
The lender will sell your house to recoup as much of the money as possible,
but you will still be liable for any remaining balance. This is called a deficiency.
Can you get your house back after repossession?
In some cases, you may be able to buy your house back from the lender after
it has been repossessed. This is called redemption. However, you will need to
be able to pay the lender the full amount of the outstanding mortgage debt,
plus any additional costs that have been incurred. It is important to seek legal
advice if you are facing the possibility of house repossession. A solicitor
can help you understand your rights and options and can represent you in court
if necessary.
We offer a quick turnaround with fast bridging loans, and in some cases, we will approve and get you the finances you need in 24 hours.
Funding is provided for all manner of development needs, from light to heavy refurbishment or a complete development build.
A bridging loan can be a good way to stop yourself from falling into bankruptcy, giving you an urgent cash injection when needed.
Business finance can be obtained through bridging finance and can be used for a variety of purposes for your business.
Consolidate your debts into one monthly payment by using a bridging loan to bring your finances back into shape.
An unexpected tax bill could create a real strain on finances. Use bridging loans to pay your taxes.
A bridging loan can be used to take your mortgage out of arrears and stop the home from being repossessed in the process.
Our quick and easy bridging loan calculator can be used to easily identify repayments on a bridging loan with just a few clicks.
Business Address: Office Block 2, Kibworth Business Park, Kibworth Harcourt, Leicestershire, LE8 0EX
Telephone: 0116 366 6338
Email: contact@ukbridgingloans.uk