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!
Tuesday, 17 April 2007
Thursday, 5 April 2007
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."
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.
----------
We can stop your repossession today - visit www.cashformyhouse.co.uk for more information
----------
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."
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