Tips to Tackle the Prospect of Repossession
There come many instances in one's life when he/she gets worry about having their home repossessed, such as in case of high debts.
Repossession can be avoided in many cases which most of the people are not aware of.
For instance, if your home has very little equity (surplus value of your home after the mortgage has been paid off), creditors may not find it of any worth to repossess it.
You can judge the equity of your home by different means.
First thing you have to know is the worth of your home.
For this, you can contact three or four estate agents and ask them to let you know about the worth of your home.
Sometimes, they may need to visit your home to give you proper figures, but this may not be necessary.
If they are familiar with the locality of your home, they will let you know about the figures without even visiting the home.
Remember, it is not always necessary that all the estate agents have the same valuation; they may vary slightly from agent to agent.
But this will give you a good idea about the worth of your home.
You can also figure this out by reading the estate section of the local newspaper or talking with your neighbors.
Another option you have is to ask a surveyor to value your home.
They will charge fee from you for this, so better avoid this option.
After you have a reasonable idea about the worth of your home, now is the time to have the idea about how much you owe on it.
You might have the copy of regular statements that your mortgage lender should have sent you showing what you owe on it.
If you don't have those, ask your mortgage lender for a statement.
Once you get the statement, subtract the amount owe from how much your home is worth.
The result will represent the equity in your home.
For instance, if your home is worth £85,000 and the amount owe is £80,000, the equity or surplus is £5,000 only and for this small amount your creditor may not opt to repossess your home.
Take it in another way.
If you owe £80,000 and your home is worth £75,000, you have a negative equity in this case.
In this case too, the creditor won't opt for repossessing your home.
But if the home is worth more than the owed amount, you creditor may likely to opt for the repossession in order to release the equity and pay off the debt.
Another factor which you need to take into consideration is to check whether your debt is secured or not.
In case you have taken out a secured loan then you would have singed an agreement to secure the loan against your home or other valuable asset.
Simply, you have given him the right to repossess your home or valuable asset as security for that loan.
In this case, better contact to a qualified financial adviser who will be the only person to tell you how to proceed.
Repossession can be avoided in many cases which most of the people are not aware of.
For instance, if your home has very little equity (surplus value of your home after the mortgage has been paid off), creditors may not find it of any worth to repossess it.
You can judge the equity of your home by different means.
First thing you have to know is the worth of your home.
For this, you can contact three or four estate agents and ask them to let you know about the worth of your home.
Sometimes, they may need to visit your home to give you proper figures, but this may not be necessary.
If they are familiar with the locality of your home, they will let you know about the figures without even visiting the home.
Remember, it is not always necessary that all the estate agents have the same valuation; they may vary slightly from agent to agent.
But this will give you a good idea about the worth of your home.
You can also figure this out by reading the estate section of the local newspaper or talking with your neighbors.
Another option you have is to ask a surveyor to value your home.
They will charge fee from you for this, so better avoid this option.
After you have a reasonable idea about the worth of your home, now is the time to have the idea about how much you owe on it.
You might have the copy of regular statements that your mortgage lender should have sent you showing what you owe on it.
If you don't have those, ask your mortgage lender for a statement.
Once you get the statement, subtract the amount owe from how much your home is worth.
The result will represent the equity in your home.
For instance, if your home is worth £85,000 and the amount owe is £80,000, the equity or surplus is £5,000 only and for this small amount your creditor may not opt to repossess your home.
Take it in another way.
If you owe £80,000 and your home is worth £75,000, you have a negative equity in this case.
In this case too, the creditor won't opt for repossessing your home.
But if the home is worth more than the owed amount, you creditor may likely to opt for the repossession in order to release the equity and pay off the debt.
Another factor which you need to take into consideration is to check whether your debt is secured or not.
In case you have taken out a secured loan then you would have singed an agreement to secure the loan against your home or other valuable asset.
Simply, you have given him the right to repossess your home or valuable asset as security for that loan.
In this case, better contact to a qualified financial adviser who will be the only person to tell you how to proceed.
