Don’t say that you haven’t been warned and as we say here at debt advice now, there is a wind of change and when the banks start to feel frightened they react ! The article below spells it out so we won’t add anything to it, but we did feel that it was worth sharing;

In the first three months of this year, mortgage lenders repossessed more than 9,100 homes, according to the Council of Mortgage Lenders. They also predict that 40,000 mortgage borrowers (people) will lose their homes this year 2011, thanks to difficulties with paying their home loans. In other words, mortgage lenders seize 110 homes each and every day (this is really happening NOW). This which works out at 4.6 homes every hour of the year, or one repossession every 13 minutes.

Unfortunately the majority of repossessed properties will incur a ‘mortgage shortfall’ because many properties are in negative equity. Properties are being sold for less than the value of the outstanding balance on the mortgage and this leaves the previous owners liable for the balance. This can be anywhere from a couple of thousand pounds to hundreds of thousand pounds. A lot of people are unaware that they will have to arrange to repay the balance to the lender and that in England, Wales and Northern Ireland, a lender legally has 12 years to contact the client to begin the process of seeking repayment of a shortfall debt; this period is usually 5 years in Scotland.

What most people don’t know is that if or when they enter into a debt plan of some sorts, once the property has been repossessed the shortfall or balance can be in placed into a IVA or debt management plan. This will then allow the clients to repay the debt in a manageable monthly payment and in the case of an IVA will mean they can repay it in a fixed term of five years.

If you are a client who has a mortgage shortfall or are currently in the process of being repossessed by your mortgage lender then please contact us on 0845 394 7992 or send us a message online to see how we can help you.

Knowing an arrangement can be put in place can ease some of the stress and worry from you at very difficult time for them.

We hope that you found the above information useful and whether you are losing sleep or not we just want to have a chat about what can be done to help you.

So don’t leave it too long as every counts when the walls re starting to crumble, we are here to help so why not contact us now.

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