repossession help
WHEN THE SMALL PRINT BECOMES A CHILLING
REALITY FOR FAMILIES ...
Your home may be at risk if you do not keep up
repayments...
Its the small print we' ve all seen a thousand times
at the bottom of loan companies and credit forms.
But for more than 2,400 families in south essex
those words took on a very real signifinance last
year when they lost their homes.
New figures paint Basildon as the repossession
capital of Essex. The number of people losing their
homes after falling behind on their mortgage repayments
rose faster than anywhere else in Essex. A total
1,484 homes were repossessed - 12% more than in
2005.
In Southend the situtation was almost as grim. It
had the dubious honour of coming second with 971
repossessions, a four per cent rise over 2005.
Homeless charity, Shelter believes the increase
is the direct result of high house prices and the
large amounts mortgage lenders allow people to borrow.
" The massive rise in mortgage repossessions
means more ordinary families face the nightmare
of becoming homeless " said Shelter chief executive
Adan Sampson. " Spiralling prices, created
by a shortage of housing are forcing families to
over stretch themselves to get on the property ladder
". He added " We feel mortgage providers
should be more responsible, particularly when lending
large sums of money to vulnerable people on low
incomes.
However we believe lenders already offer enough
safe-guards and repossessions remains very much
a last resort. Nationally, despite a sharp rise,
the figures are only back to 2001 levels. We are
still a long way off the crisis we saw in the Eightes.
The industry learned a lot at that time. Although
there are scare headlines about some mortgage companies
offering five times your salary, the reality is
applications to reputable lenders are handled responsibly.
People will only be loaned the amount suitable for
their circumstances.
Despite the rise in repossessions, Basildon council
says it has not seen more families seeking help,
Its homelessness officers support those facing mortgage
difficulties and will even negotiate with lenders
to help prevent families losing their homes. Ray
McKay from the council explained " If someone
threatened with repossession approaches us, the
councils housing advisors work proactively to prevent
the loss of the home. " They try to maximise
income by looking at available benifits, prioritise
expenditure and negotiate with lenders and creditors.
" Officials also help with court forms and
even sometimes attend with the clent, he added.
" If it is clear the property is unaffordable,
the advisor will explore housing options, which
may include selling, private renting, a homelessness
application, or a refferal to a buy back agency
if appropiate. But contrary to the common perception
when a families home is repossessed, families cannot
automatically expect a council house, he warned,
since the law set out strict guidelines on the help
councils could offer.
BEHIND WITH YOUR MORTGAGE REPAYMENTS ?
HERE'S WHAT TO DO
1) If you fall behind with your mortgage payments,
dont delay or you could end up with a larger debt
which is much harder to handle.
2) Many lenders charge penalty fees for missed
payments, so make paying the mortgage your top priority.
3) If you fail to keep up with repayments, a lender
can take legal action to repossess and sell your
home to recover the money owed, But remember a lender
cant throw you out of your home. There are procedures
that must be followed and legal notices which must
be given to warn repossession are starting.
4) Pay as much as you can afford. This will stop
the arrears rising too quickly and also show the
lender you are trying to tackle the problem.
5) Tell lenders as soon as possible if you lose
your job or have some other change in circumstances.
6) For information on dealing with arrears or to
stop
repossession call us today |
