Repossession
Bankruptcy in the UK is rising at an alarming rate. If you don’t break the debt cycle, this could be your FINAL DESTINATION!
The ease of obtaining credit and rise of the housing market have given the British people a false premise – borrowing is the solution! If you want to buy something, pay now with your plastic. If you need a new sofa, get it now and pay in two years time. You can even buy clothes on credit and spread the payments over 60 months!
It is often forgotten that debt is money that does not belong to you. It needs to be repaid with interest. Since credit is so easily available, people who have modest or low income can obtain credit and eventually fall into a debt trap. When their monthly repayments become too high, they fend off creditors with more loans or more credit cards, hoping that as long as the immediate situation is remedied, tomorrow would take care of itself.
Of course, tomorrow rarely takes care of itself and the monthly repayment and interest just escalate further and further. So what is the solution? Yes, of course, another loan! But this one is different. It is called a “Home Owner Loan”! It promises you a lower and manageable monthly repayment by consolidating all your debts. You may even have money left over to take your family on a holiday! The only difference is that this loan is secured on your property.
No, do not fall for that! If you are considering securing a debt on your home, have you first of all considered the risks you are exposing you and your family to? What if you get made redundant or become unemployed? What if interest rate rises? (There have already been two rises so far this year). You might have heard this before but it is a reality - “Your home is at risk if you cannot keep up with your mortgage payments and any loans secured on it”. How true! If you get repossessed, you and your family will lose your home.
Borrowing more money to pay debt is a vicious circle. It is a dangerous game which could lead to insolvency and bankruptcy.
Bankruptcy is a serious matter and should never be taken lightly. If you are declared bankrupt, you will lose your home and all the assets. You no longer have any control over your finances, including your income. It will be made public in the local press! Apart from the loss of physical possessions, it could be a long time before one gets over the emotional trauma resulting from a bankruptcy. Although you could be discharged after 5 years, The Department of Trade and Industry will keep a record of the bankruptcy for up to 15 years. It could be years before you are eligible to obtain anymore credit, let alone buying your home again.
The only way to tackle debt is to pay it off and take drastic actions to reduce your monthly outgoings. If you have equity in your property, you need to sell it as quickly as possible and use the cash to pay off as many debts as possible. This is how Quick Sale Liverpool can help. We have buyers who are ready to buy your property in cash within 28 days. You may also rent the property back as a tenant at an affordable monthly rent. Therefore, it is possible that within a few weeks, you could be debt -free whilst staying in your home.
If you have little or no equity in your property, we can still help you.
If you get repossessed, you lose more than just your home!
After seeing three rate rises this year alone, repossession is now at record levels! If you get repossessed, your name will be added to the Possessions Register and all the major credit agencies will be notified. As a result, your credit rating will be adversely affected. Few mortgage lenders would want to lend to anyone who has been repossessed so you may never be qualified for another loan or mortgage again. You and your family will have to move out and find other accommodation, losing the familiarity and security of the home you have been living in. With another rate rise looming, it is in your best interest to do whatever is necessary to stop repossession before it becomes too late.
This is the basic court process:
- Summons for possession – the first stage of the process. A date and time is given for the hearing.
- The hearing – there are various possible outcomes but the most usual one is the court issuing a possession order, which is usually up to two months.
- Bailiffs warrant - This is the stage at which you could be forcibly removed from your home by the court bailiff after a 14-day notice. At this point, it can be stopped only if you pay your arrears immediately, and in some cases, the whole mortgage loan in full.
But it doesn’t have to be this way! The good news is that we can help you stop repossession at any time. If you agree to sell your property to one of our cash buyers, you can obtain a stay of repossession from the court. If necessary, your cash buyer can accompany you to attend the court hearing and produce evidence that the sale of your property has already been agreed. The sale can then be completed within 28 days. Even if you are being evicted on the day, we can still stop it. This is regardless of whether your property has equity in it or not.
Another great advantage of selling to our cash buyers is that apart from being saved from repossession, you may even rent back the property as a tenant at an affordable monthly rent - a win / win situation.
Don’t let it get to that stage! We can help you stop repossession now!
