There are many companies who are experts in remortgaging for people who have credit problems, including mortgage arrears and imminent repossession. They get hundreds of calls every week from customers who face circumstances that to them seem dire – many even face the threat of eviction.
In almost every case, they’re able to help them keep their homes and set up a new mortgage with a repayment plan that will suit them.
Debt can be a very difficult thing to deal with. Often, one or two missed payments can start a downward spiral that becomes increasingly difficult to stop.
A common factor seems to be that repayments on borrowings (usually on unsecured loans, retail finance and credit cards) start to outweigh the amount needed for basic costs – with the result that you have to borrow more money just to take care of your basic needs.
It’s a snowball effect that goes from one or two missed credit card payments to missed mortgage payments. With the monthly mortgage payment usually the largest single outgoing for most people the temptation to miss one payment to try and alleviate other debt and relieve the immediate financial pressure is often great.
However, without drastic action one missed mortgage payment can lead to another and very soon you’re facing a County Court appearance added to the persistent emails, telephone calls and letters from your other creditors.
It’s a highly stressful situation to be in and for a large number of people the temptation is to bury your head in the sand. Unplug the telephone. Don’t open the post. Don’t check your emails. After all – it’s just going to be more bad news - right?
It's called the ostrich effect – many people in this situation simply can’t believe it’s happening to them. Even with a possession order in place, they keep telling themselves, “It won’t happen, it can’t happen.”
The hard fact is – it can and it does. Losing your home is a devastating experience and it can be the beginning of a tragic downward spiral in many people’s lives.
One missed mortgage payment can be enough for a mortgage company to start repossession proceedings and that means a County Court appearance.
If you can’t convince the court that you are able to clear the arrears – or if you fail to turn up for you County Court hearing they will issue a possession order. This gives you 28 days to settle your debt or face eviction.
Now comes the crunch.
If you act now then you could save your home. By acting quickly, the situation can be resolved. One call could be enough to sort out all your problems and let your start afresh, free from your immediate credit problems.
It's often asked, “I’m having all this trouble with the loans I already have. Why would I want to get another loan?”
The initial answer – and one that is often overlooked is that you could actually have enough money in your home to resolve all your debt issues. The problem for most people is how to get access to it.
Once you’re in debt, with a County Court Judgement against you and possibly facing imminent eviction you will find it difficult to get approval on a new mortgage with a High St lender.
Fortunately, they is an abundance of specialists in remortgages for those with debt problems. Once you contact them they can arrange a loan that:
a) Relieves the immediate problems caused by debt - imagine all that stress fading away instantly!
b) Consolidates all your debt in one place, with one monthly payment.
c) Has a repayment plan that suits your lifestyle.
d) Saves the equity in your home.
At any stage before eviction, you can apply to the court to suspend action – even if you’ve been served with a possession order. The company you choose to act on your behalf can make representations to the judge and you can keep your home.
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