Property News > Repossession. Are you vulnerable?

Repossession. Are you vulnerable?

In recent times, it seems as though we cannot turn on the news or open a newspaper without being further reminded about the dire situation our country finds itself in.With the cost of inflation constantly rising, generally at a faster rate than the interest rate, it seems as though nothing is 'worth' its price any more. Everyday expenses are a becoming a genuine concern to more people than not as the cost of petrol, gas, electricity, food, utilities, and council tax amongst others rise. This is happening at the turn of the property market when house prices are slumping and the economy looks weak. The number of vulnerable people is rising, from first-time buyers and disabled people, to the unemployed and buyers whose fixed interest rate is expiring , or has expired. The ensuring result is expenses being greater than earnings, and without any savings it doesn't take too long for financial trouble to appear over the horizon. The same is for people with savings; how long can you support yourself with your savings; how much of your savings do you want to lose during this market.The home-owners most at risk are those who have either no equity in their property, or those at risk from becoming unemployed. Unemployment is a serious issue, with unemployment figures gradually rising, and are currently at their highest in over two years.Is repossession the only result?Well there is some good news in the offer of some schemes available to home-owners. There is the sell and rent scheme, and the sell and rent back scheme. Both can provide the financial stability we all crave, but with different results.A sell and rent scheme is an option for home-owners to sell their property, releasing the equity in their home, and move in to the rental market whilst the current property instability corrects itself. If property prices continue to fall, then the home-owner could emerge back in to the market at a lower level, either buying a similar property at a lower price, or simply a smaller less expensive property at a lower price than what the market was at a few months ago. The result is obviously to stop repossession and allow some greater financial freedom.A sell and rent back scheme is similar in the sense that you sell your house, releasing the equity in your home, and begin renting. The difference here is that you will be renting your own house back. Therefore you do not have to endure any moving costs / time, or any time spent searching for new properties.Obviously we all aim to control our own finances, whether this is in the form of no debt, and in the more realistic form of controlled debt. Neither are easy, and there are many factors out of our control. However that doesn't mean these are unrealistic targets. No-one wants the prospect of repossession hanging over their heads, nor should anyone have to go through what can be a very confusing and upsetting time. There are ways around repossession, and options to stop repossession occurring. What we must remember is to be smart, i.e. get help if we don't understand, and equally as important, to set realistic targets.In recent times, it seems as though we cannot turn on the news or open a newspaper without being further reminded about the dire situation our country finds itself in.With the cost of inflation constantly rising, generally at a faster rate than the interest rate, it seems as though nothing is 'worth' its price any more. Everyday expenses are a becoming a genuine concern to more people than not as the cost of petrol, gas, electricity, food, utilities, and council tax amongst others rise. This is happening at the turn of the property market when house prices are slumping and the economy looks weak. The number of vulnerable people is rising, from first-time buyers and disabled people, to the unemployed and buyers whose fixed interest rate is expiring , or has expired. The ensuring result is expenses being greater than earnings, and without any savings it doesn't take too long for financial trouble to appear over the horizon. The same is for people with savings; how long can you support yourself with your savings; how much of your savings do you want to lose during this market.The home-owners most at risk are those who have either no equity in their property, or those at risk from becoming unemployed. Unemployment is a serious issue, with unemployment figures gradually rising, and are currently at their highest in over two years.

Is repossession the only result?

Well there is some good news in the offer of some schemes available to home-owners. There is the sell and rent scheme, and the sell and rent back scheme. Both can provide the financial stability we all crave, but with different results.A sell and rent scheme is an option for home-owners to sell their property, releasing the equity in their home, and move in to the rental market whilst the current property instability corrects itself. If property prices continue to fall, then the home-owner could emerge back in to the market at a lower level, either buying a similar property at a lower price, or simply a smaller less expensive property at a lower price than what the market was at a few months ago. The result is obviously to stop repossession and allow some greater financial freedom.A sell and rent back scheme is similar in the sense that you sell your house, releasing the equity in your home, and begin renting. The difference here is that you will be renting your own house back. Therefore you do not have to endure any moving costs / time, or any time spent searching for new properties.Obviously we all aim to control our own finances, whether this is in the form of no debt, and in the more realistic form of controlled debt. Neither are easy, and there are many factors out of our control. However that doesn't mean these are unrealistic targets. No-one wants the prospect of repossession hanging over their heads, nor should anyone have to go through what can be a very confusing and upsetting time. There are ways around repossession, and options to stop repossession occurring. What we must remember is to be smart, i.e. get help if we don't understand, and equally as important, to set realistic targets.

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