“I’m behind on mortgage payments…will I be giving my house back to the bank in the North East?”
Nobody wants to lose their home. But sometimes financial circumstances turn against you and those financial commitments become simply too much to manage.
If your situation progresses too far, you may be forced into the unfortunate situation of having to give your house back to the bank in the North East, leaving you temporarily without a place to stay. In addition, there may be long-term consequences, including a dramatic and long-lasting impact to your credit (and therfore your ability to get a house in the future).
No one wants that. That’s not an ideal outcome. Fortunately, there is a strategy you can take today to help you proactively protect yourself and get back on track to financial solvency.
Here’s a brief overview of the repossession process
The repossession process can vary depending on lender and the type of mortgage you have.
Usually, if you miss a few mortgage payments, your loan company will start sending you notifications and then warnings. Over time, if you fail to pay back the mortgage payments you missed, the mortgage company will re-possess the property and you will sadly be made to evict.
Fortunately, you have options!
If you wait for the repossession process to be formally started, it will be too late. It is important to act before this happens – you will be given plenty of notice by the bank of their intention to repossess, so you will have time to act.
You can avoid repossession by selling your house before it’s taken over by the bank. If your loan is paid in full then there will be no more penalties against you and your credit rating. (If your loan isn’t paid in full you will need to make up the shortfall). But it’s imperative to get the sale agreed, and completed quickly! As at this stage the banks don’t like to mess around.
Here’s an example: Let’s say you owed £100,000 on your home and you sold your home to us for £90,000. You would give that money to the loan company, along with £10,000 to make up the short-fall, and your loan would be paid off.
At North East House Buyers, we’re professional property investors. Contact us today at 0191 462 0160 to find out what we can offer you for your house — even if it needs repairs.
I want to avoid giving my house back to the bank in the North East!
Why do people choose to sell their home instead of going through repossession? (After all, they still don’t live in their home anymore.)
Well, losing a home can be difficult but the impact on your financial situation and your credit is considerably less than if you simply wait out the repossession process. In fact, going through repossession could impact your credit score by as much as 100 to 150 points. So the short-term challenge of selling your house is still a better choice than the long-term pain of giving your house back to the bank.
Also, the bank will then sell the property to the public by way of a corporate sale. They will try to get as much as they can for it in order to pay down the debt, but if they don’t cover the full amount then they will still come after you for the difference.
Maintaining your credit score is the best chance you have of owning another home in the future!