Ethical Sell and Rent Back Schemes?

There has been a huge amount of stories in the press in the last month about sell and rent back schemes and sellers who rent back and then lose their homes.

Whilst some of these stories are certainly true, there is a strong element of lazy journalism involved with tabloid TV shows recycling the same few examples over and over again. The fact that these new 'exposes' are almost always repeating the same story as a previous news piece actually makes the situation look common. In fact it isn't common at all.

When a property investor buys your property and rents it back to you they are also taking a risk. That risk is that you will be a good long term tenant! In our experience people who previously owned their own homes make the best long term tenants when they stay in the property they know and love. If you accept that property investors are motivated by money (it is after all an investment), then it soon becomes clear that evicting tenants makes no financial sense. Empty void periods, redecorating, advertising, agents fees etc all add up to a loss.

It is important that if you are considering a sell and rent back scheme for your own home that you ask the right questions of whoever will become your landlord, and worth remembering that trust is a a two way street. We only buy and rent back to those sellers we feel comfortable with a future tenants, and encourage the sellers to consider how they feel about us becoming their future landlord!

For a fast and free service if you want to find out more, or talk to someone about your repossession or eviction problem then please visit our website or contact us by Freephone.

For more information contact us on 0800 634 28 21

How to Cut Your Monthly Bills and Get Out Of Debt

How to Cut Your Monthly Bills

One of the most common questions you will find being asked online or offline is 'How can I cut my monthly bills and outgoings'?

If you already own your own home, then there is an answer that may be right under your nose.

With Northern Rock near the verge of collapse, interest rates on the rise and global tensions leading to a downturn in the world economy. Maybe the time to be a home owner is over?

These days with rents being cheaper than most mortgages and house prices beginning to fall, it can make more financial sense to rent rather than buy your home.

If you already own your home and you are feeling pressure from your mortgage lender or have unsecured debts like credit cards, then selling your home and renting it back could be the option for you.

You could get

- A Cash Lump Sum
- Your Mortgage and other Debts Paid Off
- Lower Monthly Costs
- More Disposable Income from you pay packet

All this without having to move from your home, so your kids can stay in school, your neighbours don't have to know that you situation has changed.

But most importantly you will have a fresh start without debt, something that very few of us these days are able to experience.

For more information contact us on 0800 634 28 21

BBC Highlights Sell & Rent Back Dangers

Concerns over repossession rents

Five interest rate rises in a year have seen repossessions increase. Some householders facing repossession are ending up homeless after selling their homes to property companies, a BBC investigation has found. The firms, which lease the properties back to the ex-owners, are said to be imposing large rent rises. Others complain that they have received less than the market value for their former properties. Consumer advice groups and housing charities said they were concerned about the lack of regulation.

Only option

A Citizens Advice Bureau official said one elderly man had sold his home under such a deal for £40,000, even though it was valued at £165,000. There was just no other way out if I wanted to keep the house Victoria Taylor A nation (re)possessed? The investigation for the Five Live Report found that such deals are on the increase at a time when increase rates have risen five times in the past year and the number of repossessions has gone up by 30%. Victoria Taylor lived in her home in Wolverhampton for 26 years, but was unable to meet the mortgage repayments after her partner left her.

On Five Live Sunday Breakfast she said selling and then paying rent to live in her house seemed like the only option. She said: "Had there been another way out I wouldn't have done it, but there was just no other way out if I wanted to keep the house."

If you are considering selling and renting back your home and are concerned about this BBC report, then make sure that you obtain references from any company that you approach. All reputable sell and rent back companies will be only too happy to provide details of satisifed tenants who have sold their homes to rent back.
We also offer a buy back option for you to buy back your home at a discount in the future and we can guarantee rents for up to 2 years.
Alternatively, sell and rent back may not be the best option for you and we try to give clear advice on what your options are before you consider sell and rent back.

For more information and contact details visit our website at
www.cashformyhouse.co.uk

Welsh property now too expensive says Shelter

Forty per cent of young working families cannot afford the cheapest houses in Wales and more house repossessions are occurring much sooner, says the housing charity Shelter Cymru.

Figures released by Shelter Cymru today show that this year has seen the highest number of clients seeking mortgage advice from the charity since 1991.

Nearly 600 households who were experiencing problems in paying their mortgages, and were facing a repossession action and homelessness, have been advised and supported by the charity over the last twelve months.

JJ Costello Head of Housing Services said: “ For some time, we’ve been afraid that the housing market has forced some people to borrow beyond their ability to repay. Some people will have been able to afford the initial fixed term mortgage rate but may now be struggling to cope. The rise of the sub-prime lender also appears to be resulting in more repossessions occurring much sooner.”

Shelter Cymru urges anyone facing arrears to seek specialist advice immediately. Getting early help with budgeting and reaching agreements with lenders can avoid repossession.

If you are facing arrears with your mortgage or fear repossession then click below to find out more about our popular Sell & Rent Back services
Click here for your FREE valuation /offer for your home

Mortgage woes finally sorted out

Jul 23 2007

by David James, South Wales Echo


MR X, of Caerphilly, nearly lost his home because of mortgage problems.

The family man, who did not want to be identified, sought help from Community Legal Service (CLS) advisers after being taken to court by his mortgage company over his arrears in October last year.

He had been ordered to pay £45 per month off his arrears on top of his £700 monthly mortgage repayments.

But although he made every payment, his arrears rose by £2,000 because he paid each one two weeks late – and he again faced losing his home.

After the CLS intervened and wrote to his lender GE Money, the lender altered his contractual payment date and took no further action.

To find out how to stop repossession and pay off your mortgage arrears WITHOUT borrowing more money click here

Mortgage Lenders Meltdown - How it Affects You

News out today that even the banks are getting worried about their own rising interest rates. The Times online has an article about how the leading mortgage lenders are getting worried about the potential of a house prices crash. Because the banks have been busy making so much money from mortgages and especially re-mortgaging ans second charges which depend on the consistant rise of house prices to guarantee the banks' profits, it's not just homeowners who could face meltdown in a house price crash crisis.

Even if the banks repossess your home, they still need to sell it either on the open market or via an auction in order to recover the debt from you mortgage. But if house prices crash then the banks will be less likely to recover all of your mortgage debts on your property. The result? Interest rates and mortgage arrangement fees are likely to increase further to cover the bank's shortfall in profits.

Why should we all care about the banks losing money? After all they make enough! Sure, but it concerns all of us who have a mortgage on our homes because rising interest rates affect us all.

With this in mind it could be the right time now to consider selling your home and renting it back. For the first time in living memory it is cheaper to rent most homes than to pay the mortgage. If you have a good amount of equity in your home you will also get a large lumpsum of tax free cash to spend. Isn't that better than having it stuck in your house only to lose it anyway when the market falls?

To find out more, contact Cash For My House and enquire about our sell and rent back scheme.

You can be evicted without warning!

More and more people are leaving until the last minute before seeking a solution to stop repossession of their home.

Last Friday afternoon I got a call from a very stressed homeowner who called to ask us to stop his eviction order. We do this all the time but the eviction order had already been in place for at least 7 days and the bailiffs were due today (Monday)!

In other words the family had left it until barely a few hours before finding out what their options are. Sad as it is, in this case, this family will be evicted.

I asked the caller why he hadn't called us before because we almost certainly would have been able to help him and his family avoid repossession. He told me that they had had a possession order suspended last year, but then they had not paid their mortgage payments for the last 4 months.

Suddenly, he was amazed that he received a letter from the bailliffs announcing that they would be physically evicting the family and all their belongings within 24 hours.

The point about a suspended possession order from the court is that the possession order is valid, the judge has granted the lender the right to repossess your home, but has agreed to suspend the eviction so long as you pay the agreed amounts each month to repay your arrears. If like our caller, you break that agreement, then the lender does not have to go to court again to get an eviction order. Why? Well, because the original possession order was suspended, but not cancelled.

So, if you find yourself facing a situation like this please contact us right away because your options will be much greater and you can remain in control of what happens to you, your family and your home.

click here for more information

Lib Dems Warn of Home Repossession Rise

Commenting on figures published today by the Council of Mortgage Lenders showing that mortgages are at their least affordable for 15 years, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"Many families are now struggling to meet interest payments as house prices and interest rates continue to rise. The ominous warning today from Mervyn King suggests there is at least one more rise in interest rates to come.

"Gordon Brown has been extraordinarily lucky so far, but a combination of an economic slowdown and higher interest rates could spell disaster for large numbers of heavily indebted families.

"A generation of young people are now finding it impossible to get onto the housing ladder except by borrowing at levels which are ludicrous and dangerous. Unfortunately some mortgage lenders are inviting disaster by doing just this.

"If interest rates rise further, many home owners will simply not be able to pay. The figures over the last two years show that although we are not yet at the crisis levels of the early 1990s, the number of repossessions and repossession orders is soaring."

If you are facing repossession then get the facts free by clicking here

Act quickly to stop Repossession

This week I've been helping a number of families and sellers with problem properties. For one of them though, the call to Cash For My House came just a bit too late. Don't leave it until your home has been taken from you before you decide to do something about it!

Mr R.B. from Kent is a retired army captain who since his divorce had lived alone in a new build 2 bed flat in a Kent coastal town. Mr R.B. was targeted by a gang of local youths who tried to get him to buy cigarettes, alchohol and other substances banned to under 18s. When he refused he was systematically targetted by the gang who threw objects at him, terrorised him at night and even urinated through his letter box. He decided to rent another flat and move away from the area, in the process leaving the mortgage on his previous flat unpaid for months. Mr R.B.s reason for this was that he felt he needed this money to pay rent in his new flat away from the problems of the old one. However, by not dealing with the situation at the time, selling the flat or renting it out, the mortgage company repossessed the apartment, and Mr R.B. didn't even know because he hadn't informed his lender about his problems, so they sent the letters to the old address.

Suddenly Mr R.B. realised he had to act. I made him an offer for the flat that he was extremely happy with, but after making the local searches, my solcitor told me that Mr R.B. wasn't actually the owner of the property!

Unfortunately for him, the flat was now the property of the mortgage lender and the sale of it was totally out of his hands. So, if the lender's agent didn't sell the flat for more than he owed the mortgage lender, he would be liable for the short fall in between the sale price and the amount he owed the lender for up to 12 years!

To avoid repossession and find out about selling your home and renting it back, click here

Mortgage Lenders Get Rapped in Kingston Upon Thames

Sub-prime mortgage lenders should be more responsible about setting lending criteria, a spokesperson for the Independent Mortgage Advice Bureau (IMAB) has said.

Lenders must take more responsibility when choosing which customers to lend to, checking what the customer will be able to afford by examining income, mortgage advisor Simon Beames stressed.

But he added that the intention to lend more responsibly is often counterbalanced by the need to compete with the opposition, which has driven the trend to "extend... affordability calculators quite considerably".

Still, Mr Beames conceded that when borrowers do go into arrears, lenders must try harder to help.

Sub-prime lenders should be "more flexible with the options when people do go into arrears", Mr Beames admitted, helping customers work through the options instead of leaping to take legal action.

Telling customers, "you're in your last chance saloon, we're closing the doors on you" will not help vulnerable individuals get back on their feet, he stressed.

According to Citizens' Advice, 70 per cent of the rise in repossession hearings between 2005 and 2006 at one county court in Kingston, Surrey, was attributable to the increased ease of sub-prime lending.

To avoid problems with sub prime lenders visit Cash For My House. Get out of debt without borrowing more money and stay in your own home!

Don't leave it too late or the Courts WILL evict you!

In the course of our work we come across many different types of people, after all house repossession can happen to absolutely anyone, regardless of previous circumstances.

But the people we are usually best placed to help are those who contact us before the repossession process really gets underway, even if it's only to find out about the procedure and what their options are. If you have mortgage arrears and have your lender starting to make noises about court dates, solicitors or repossession, then the sooner you deal with the issues involved, the more likely it is that you can sort out the situation in time, and save your home from repossession.

This week I had a call from young married woman in the north of England. She was desperate because the court had given a date for their eviction. Not just the date for the hearing, or even a repossession order (that is often suspended by the judge as long as you make some payments towards your mortgage arrears) - but an actual eviction date.

This means that the couple had gone through the whole process from lender's threatening letter, to first hearing in the court and right up until the eviction date was set. But even then, they only had 3 days left before eviction. That is before the police arrive with the locksmiths and remove all their belongings into the street.

Now, it is possible in extreme circumstances for us to exchange contracts on a sale in 48 hours, thereby stopping the repossession action in its tracks. But, 3 days doesn't give anyone much room for manoeuvre. With this couple they wanted to sell and rent back, a service we offer to everyone.

But in these scenarios I usually like to meet to sellers so that a) I can see that they are genuine (most people are - very , very few are not) and more importantly so they can meet me - their future landlord. It's one thing to have to sell your home and rent it back, but it's another altogether to rent back and then find out your landlord some inhuman corporation who just see you and your property as a quick buck and a statistic.

In this case, the couple lived nearly 300 miles from our office. Not a problem in itself but time consuming to make the trip and we only had 3 days to stop their eviction!

In the end the amount of money the couple owed on their mortgage was just too high - something like 95% of the market value on a good day - and so they are facing eviction in 2 days time. And they only owed £3000.

The moral of the story is that given the 3 months or so that they had taken before contacting us we could have found other solutions to their problems, and they almost certainly would not have had to face repossession - the ultimate humiliation for any home owner who has worked hard to keep family and home together during these hard times.

Call me free on 0800 634 28 21 for a confidential chat about your options. If calling from a mobile that charges for 0800 numbers I'll be happy to call you straight back and pay for the call!

Reading is a boom or bust town

The high cost of living in Reading has made it a victim of its own success.

First-time buyers saving up for a property are finding they cannot keep up with soaring house prices, and rising interest rates have led to a record number of house repossessions and insolvencies.

Research by the Reading Lib Dems shows house prices have almost trebled in 10 years, from an average £81,377 in 1997 to £198,851 - five times the average borrowers' income.

And repossession orders issued in Reading borough have increased by 19% since 2005 to 528, with individual insolvencies rocketing 14% to 735.

Dave Wild, a DJ who also who works at the Knob Shop in London Street, has been saving up to put a deposit on a house for more than two years.

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We can stop your repossession today - visit www.cashformyhouse.co.uk for more information
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But to do this the 25-year-old has had to live at home with his parents in Kerris Way, Earley, and he admits the situation is becoming "desper-ate".

He said: "The worst part is the stigma attached to it. I'm 25, have my own business but I still live with my mum and dad.

"While it's not the ideal situation, it's the best of a few bad options. It's better than getting rid of £500 every month on rent.

"For something we aren't getting any money back for it seems very expensive. I'm not prepared to give up my social life to pay a mortgage."

Shelter chief executive Adam Sampson said: "The real tragedy is that the chronic lack of social rented housing means the safety net for those in the greatest need, who can't afford to buy or even rent at today's prices, is completely inadequate."

Reading's Citizens Advice Bureau has noticed a huge rise in the number of people passing through its doors unable to pay their debts - averaging about £13,500 per person.

It deals with 60 home repossession cases each year, but the number of cases which don't involve the CAB is thought to run into the hundreds.

And centre manager Christine Moore believes the major factor is the high cost of living in the town.

She said: "It's one of those places where quite a high proportion of people are on decent salaries, but there are also a high proportion of people, particularly families, who are struggling.

"For a long time people have remortgaged and consolidated, but with rising interest rates they realise they can't keep payments up."

But the reasons for insolvency vary wildly, according to a report by the Insolvency Service.

In the study, 49% said their bankruptcy was down to credit misuse, 16% cited business failure and the remaining 35% attributed it to other causes, like illness, relationship breakdowns and redundancy.

Service inspector general and chief executive Desmond Flynn said: "The report concludes that very few people see bankruptcy as an easy way out of their debts but rather that they have no real alternative."

And although the Council of Mortgage Lenders says the number of repossessions is still quite low, rising interest rates in recent years have been enough to plunge some borrowers into trouble.

Spokesman Christopher Dean said: "Starting in 2003 there were a number of interest rate rises which, for people who are already slightly over-stretched, can put them over the edge."

UK Mortgage Lenders in trouble in the US

Twenty percent of all bad credit mortgages will end in repossession in the U.S.

Bad debts are adding up to a $164bn black hole for American banks. And Britain's banks are caught up in it, reports Heather Connon...

Federal investigations, corporate collapses, borrowers who never manage to make any loan repayments, soaring bad debts ... sub-prime lending to riskier borrowers in the US has all the hallmarks of an industry in crisis.

The Centre for Responsible Lending predicts that one in five of all sub-prime loans written over the past two years will end in foreclosure, the US term for repossession: that's 2.2 million loans and a cost of $164bn (£85bn).

One British bank has already become embroiled: HSBC's bad debt charge rose by 35 per cent to more than $10.5bn in 2006, a fifth of which came from its sub-prime mortgage servicing business. Its chief executive, Michael Geoghegan, warns that it will take at least two years to sort the problem out.

Default rates are certainly eye-popping: at its results last week, HSBC revealed that almost 6 per cent of the second lien mortgages - loans on property that has already been mortgaged - in its mortgage services division were more than 60 days in arrears, three times the level a year ago; the fear is that they are still rising. While this type of lending is high risk - default rates of around 2.5 per cent are normally factored in - these levels have taken the industry by surprise. But that reflects their failure to appreciate the high stakes behind some lending practices.

Sunday March 11, 2007
The Observer

Stop Repossession | Reposession

How can I stop my repossession?

Welcome to your free resource on how to stop repossession of your home.

The process of repossession may seem complicated especially when you start receiving threatening letters from your mortgage lender and you feel like you have nowhere to turn for advice.

We offer a free advice service and you can download our free PDF guide 'Stop Repossession Now' by clicking here.