By the end of 2007, it is expected that 19,000 homeowners in the United Kingdom will have lost their homes to repossession orders. In the last three months alone, county court judges have ruled on more than 7000 hearings in the UK. And with interest rates set to rise again next year, the forecast for 2008 is even worse There are many reasons that lead to home owners defaulting on their mortgages. A two-income family loses one of its wage earners to unemployment, and suddenly there are insufficient funds to keep up with payments. While Illness and divorce can have devastating effects as well, in most cases, home owners who have purchased in recent years have simply under-budgeted or failed to plan for the unexpected. So what options are available to those facing repossession? The only way to stop a repossession order from being enforced, is to make a substantial payment of mortgage arrears. Unfortunately, for most homeowners who are facing repossession, this is not possible, and for those who are able to scrape up the money to make a one-off payment, it is often only a band-aid solution to a burst-artery kind of problem. There is a new breed of property investor in the market today. Many of their leads come from the county courts. They have made a business of helping stop repossession for those who seem to have no alternatives. While homeowners are warned to shop around, there are some high-integrity operators out there who have a genuine desire to help people, and their businesses are thriving. Many investors will cover the cost of getting a valuation and paying solicitors’ fees. Some work directly with valuers and solicitors who are able to move quickly to ensure that repossession is avoided and a solution is found in the fastest possible time. Most do not charge service fees. A quick call to one of these operators is often all that is needed to start the ball rolling to stop repossession. Typically, homeowners are visited by a company representative who will endeavour to find a win/win solution. Some offer a sell and rent-back option and/or a sell and buy-back option. This gives homeowners a real chance of remaining in their homes and of even buying them back when their finances are in better shape. It’s true, the forecast doesn’t look good, but there is help at hand. If you are facing imminent repossession, make sure you get legal advice before signing any contracts.
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