When can your home be repossessed
Repossession or mortgage possession as the term is also used means that you are to lose your property in lack of the proper financial covering of your credit. House repossession is no joke. It can easily end up with you out on the streets within just a few months’ time. Therefore it is one thing to take very seriously. Let’s talk about repossession this time around and on how to act when it happens to you.
Any home under credit or any mortgage can be repossessed by the credit company if the borrower (the person who gets the credit or the official guarantor) is either official unable to pay or simply shows no signs of wanting to repay the credit for a pre-defined length of time, which is generally around 2-3 months at the minimum. When the borrower fails to reply to letters or any other warnings and fails to report or talk about the situation or how to resolve it, the issue will culminate in a court procedure the end of which results in the home or mortgage being repossessed by the credit institute.
Be aware that you will get tons of warnings which all serve as an option to resolve the situation before it actually escalates to court and before the legal procedure even starts. Use this time to talk about the problem you have with the credit institute to find a resolution. Always make a credit insurance because it can pull you out of trouble at least for one year which is well enough for someone to find a job and get financially better.
If the case goes on court always show up and try to defend your case as much as possible never do a no show or no reply for these letters because it will only quicken the procedure.
A fact of the matter is, that no matter how much you have already paid. The property can be repossessed anyways. What generally happens after repossession is that your home will be put on a special auction where it will be sold for only a fragment of its real price to cover your costs. This means that given the low amount, you won’t see much from the sum of the property.
Generally after the court decision is official and the vacate order is official, you have 7 days to pack all your belongings and leave the property. Never give your keys until everything is cleared though because otherwise it can happen that the story is not the end: but will result in a way larger debt and a sure blacklist status for your credit score.
Do I need to sell my house?
A golden advice is, as soon as you are in financial trouble and you cannot see when you will ever be able to pay the sum you owe back, go proactive and put your home on sales as soon as you can using quick house sale companies such as Fasts Homes, who can help. This way, you will be able to actually get some money, which can help you a big deal in paying the debts back and perhaps even to get a smaller property as well. If you leave this on the credit institute you may as well end up on the street.
Last but not least the best definite advice is to avoid house repossession on all costs and always make sure you have enough financial means to cover your debt.