After a relatively quiet January, since the beginning of this month we have been inundated with requests for help from families all over the UK asking for help to stop repossession. Following on from the previous postings here, the trend is alarmingly similar. Loan companies (and mortgage lenders to a lesser degree) seem to be repeatedly overvaluing properties for remortgage or consolidating loans. As the last mortgage interest rate has kicked in, many people are finding that they are missing their monthly payments, and as a result receiving the dreaded letters for threat of eviction due to repossession.
In some cases, even when the family involved realises that they must sell their house to stop repossession taking place, there is so little equity left in the property after the mortgage and loans have the early repayment penalty (redemption figures) included that they stand almost no chance of being able to recover any money from the sale of the property. However, even selling the property and moving into rented accomodation is better than facing forced eviction and repossession, simply becuase of the social stigma and the harm it does to your credit rating, making even renting difficult as most landlords will run a credit check before they accept a new tenant, and few will accept tenants with a proven track record of non-payment of mortgage, even if the reasons are outside of the family's control.
In cases where the mortgage is relatively low compared to the amount secured on a so called '2nd charge'then there can usually be a solution in selling the home and renting it back. This is something we are able to offer to most people, and often with the option to buy back the property at a later date, but at a price fixed today. In other words, in 3 or 5 years time, the property could be worth 10-30% more, making the option buy back price a significant discount, and much easier to get a mortgage against.
Source: http://www.ArticlePros.com/author.php?Stop Repossession
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