Repossession is the worse nightmare of every home owner.
When your house is reposed it is quite obvious that your property will be sold off by auction or by a traditional estate agent to pay the mortgage.
What is Repossession?
The sensitive situation of Repossession crops up when a financial institution takes back an object that was either used as rented, leased or collateral in a business deal. Unfortunately, if a consumer is incapable to pay back the amount as per the credit contract, even within the grace period (which is usually 30 days), the condition of repossession arises. Though the lender tries to achieve the best possible price, in most of the cases it is lower than the market value. The property in such a scenario passes over to the estate agent and if that too fails, it goes to auction.
Time to be Cautious
Repossession is a tough time to cope with. Unsold property adds interest to the debt. The estate agent quickly sells away the repossessed property. If there are only a small number of buyers, the estate agent will move forward with the one that gives him the most profits. This is because a real estate agent is paid from sales commission instead of a basic salary. There are people who look for miracles to happen in order to stop repossession. But the truth is miracles hardly happen in the arena of real estate. The only solution is to maintain proper money-management methods to tackle the financial crunch and emerge unscathed.
What happens after Repossession: Things which you can do
Even the most stable-minded lose hope when repossession strikes. Instead, a cool-headed and balanced outlook, along with concrete decisions is the need of the hour. If you have failed to stop repossession, you can do the following things to compensate:
• You can go to the court and ask for an injunction to prevent a sale. This is only applicable if you can prove that your property has been rated too low.
• Gather money to pay back your debts soon after the eviction. To stop the sale of your home, apply for an injunction while you make the necessary arrangements. However, you have to be prompt in your action.
• Check out the exact date when the property is being handed over to the agent.
• Check out whether there is a sale sign outside the property. In case of absence of sign you can take a date stamped photograph, so that witness can be provided of that time.
• You can ask for details about properties in that particular region, and their sales agents. Check out the sales details and note the value of similar properties.
• Clarify beforehand that the property is being portrayed accurately and does not talk about vacant possession or upward chains, causing you a tactical disadvantage.
Even resorting to the best preventive measures may not prevent the befalling of a misfortune. Therefore it is always advisable to master the knowledge of how to turn the table in your favor as far as repossession is concerned, before it actually happens for real!
Article Source: http://www.ArticleBlast.com
About The Author:
Tony Freeman offers up-to-date information on how to stop repossession of real estate property. Find out more Visit – http://www.quickcashforproperties.co.uk/how_we_can_help/avoiding_repossession.php