Seek Debt Advice in Face of Repossession

Tue, 05 Jul 2011

Sadly the recession has meant banks repossessing more homes.

When a property is repossessed, the debt does not clear; a borrower still owes any shortfall after the sale of the property .

Various types of properties are repossessed. Some of these repossessions are properties that have been owned by homeowners who have fallen behind with their mortgage payments .

Many other repossessions that are new builds and flats of developers and those who have bought buy to let properties and fallen upon hard times.

In some cases individuals are facing repossession due to a death or a divorce.

The reason why repossessed properties are relatively cheap is due to the bank or building society claiming back the house. The mortgage lender is responsible for obtaining as much as possible for the property. Under normal circumstances, sellers would spend months waiting for that right offer.

On the other hand, banks and building societies usually price repossessed properties up cheaply to sell on as quickly as possible, often between 10% and 30% off market value.

If you are struggling with mortgage debt you need to get help by contacting your mortgage lender and a debt advice agency.

Do not just wait as the debt increases. Seek help.

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