Posts Tagged ‘repossessions’

Bankruptcy- What can happen?

Bankruptcy, the “B” word, is feared by many and has negative connotations associated with it. Sadly, we see many Creditors petitions in Court for borrowers being made Bankrupt by their Lender. Perhaps the stigma surrounding Bankruptcy has been reduced since 2008 due to the increase in numbers filing for Bankruptcy but it is still something that many fear and want to avoid at all costs however It can prove to be a useful tool for borrowers whose debts are so significant that there is no route to negotiate with lenders.

Aggressive Creditor’s Petition? What’s the worst that can happen?

You can be made Bankrupt by your lender. It is a lengthy process for the Creditor and does involve cost but nonetheless many will pursue this route to non- responsive debtors. Throughout the process a Creditor must take action to declare the debtor Bankrupt, the debtor will be given every chance to respond. Amicably liaising with a lender can vastly reduce the chance of you being made Bankrupt and also bring about a positive outcome for all parties involved should this be the best option for you.

Should a Creditors Petition be followed through you could find yourself in increased financial difficulty. You may be called for a meeting in the Official Receivers to discuss your finances and they may decide to implement an Attachment of Earnings Order. If this is put in place funds could be taken directly from your monthly salary and distributed to the relevant Creditors. Furthermore, if made Bankrupt your assets could be in significant danger for example, if you have equity in home this asset is in severe risk. Other matters to consider include vehicles, pensions, life insurance policies etc.

Is there such thing as a ‘best case scenario’ in Bankruptcy?

Providing the Client’s circumstances align, Personal Bankruptcy can “clear the decks” allowing the individual the opportunity to start again. We regularly assist individuals going through Personal Bankruptcy and help to alleviate the pressures involved.

Dependant on your personal situation Bankruptcy may not have a serious effect on your day to day life for example, if your home is in negative equity there may be a a high possibility that you can retain this in Bankruptcy once mortgage payments are maintained. Furthermore, an income payment order may not be applicable if there is an undisputed deficit each month. There is also a possibility that you will retain your vehicle, life insurance and pension.

Regardless of best or worst case scenario, Bell & Company can assist in providing the appropriate advice tailored to the debtor’s personal circumstances with a view to establishing your best case scenario.

Contact the team here or call 02895 217 373 to discuss your circumstances and take the first steps towards your fresh start in life.

 

Can I sell if I’m in Negative Equity?

Bell & Company regularly hear individuals in Negative Equity declare themselves as “Mortgage Prisoners”. This opinion is often developed from listening to poor knowledge of their circumstances and not seeking professional independent advice.

The answer to the question is, YES but it depends.

Releasing a charge on a deed

Some lenders will allow borrowers who are in Negative Equity to sell their property. This must be done with prior consent from the lender. Otherwise, they will not release their charge on the deed so there would then not be clear title to complete the sale.

Open Market Sale

The lenders who do allow an open market sale will require a full financial review often in their own format. Bell & Company know which lenders allow borrowers to sell on the open market and we also know the processes. Our Resolution team achieve on market sales agreed with lenders daily.

Some lenders however will not allow an open market sale. This does not seem like a commercially minded decision given that an open market sale if beneficial for all parties. Achieving the true price for the property which will ensure the lender receives the maximum sales proceeds possible and the borrower’s shortfall debt is reduced.  Nonetheless, this is their stance and must be respected.

Even if you are with a lender who will not allow an open market sale it is still possible to offload the negative asset, but it comes with greater issues. This involves repossession (through court) or voluntary surrender of the property – this will typically mean a sale in possession by the lender which typically achieves only 70% of open market value. There could also be consequences for your credit rating.

Appointing Bell & Company

It is essential you do not deem yourself a “mortgage prisoner” and understand that options do exist and that many people in a similar situation have extricated themselves from Negative Equity by appointing Bell & Company.

Our expert team will ensure the advice is tailored to your situation. We do not tell you what you want to hear but instead what you need to know to move forward. All our initial consultations are free and to arrange yours please call us today on 0330 159 5820.

Could I lose my home?

Could I lose my home?

One thing we understand entirely is that home is sacrosanct to most people thus it is imperative that the situation at home is investigated first and foremost. In many instances, a Borrower/Guarantor’s home will be mortgaged with another lending institution and, as a result of the property crash, there will very rarely be equity in the home thus there is nothing there for lending institutions to pursue/Official Receiver to vest an interest in.

However, each case is different. A lot centers around mortgage balance, current market value and whether there is any equity within the property. A lending institution only can initiate repossession proceedings. if your home has been directly offered as security.

Personal Guarantee

If you have signed a Personal Guarantee, your personal assets are exposed. Any Creditor can seek to realise the equity in any assets relating to you by seeking Judgment and enforcing same thereafter or, alternatively, petitioning for Bankruptcy, even if they have no security.

If there is equity in your home, this will have to be considered in any settlement proposal to ensure that the same is protected. This will often avoid aggressive action than by a Creditor. However, rights are always reserved.

If you or anyone you know could benefit from our services, please call us today on 0330 159 5820.

 We look forward to working with you.

LONDON – IS THE BUBBLE BURSTING?

Bell & Company have previously written posts on the potential property bubble developing in London and the South East of England. In the last week there have been murmurs in the financial press that the bubble could indeed be bursting. London, once deemed one of the most secure property investments, is now looking shaky.

A combination of ultra-low interest rates, investors taking advantage of tax breaks to purchase Buy to Lets and foreign investors encouraged by the stable political environment saw prices reach dizzying heights in the Capital.

Just this week however Halifax revealed prices in London fell by 0.8% which is incredibly unusual, nonetheless this fall links with the additional tax on second homes adding 3% on the purchase price.

Nonetheless other signs (across the entire UK) show signs the market has peaked and may decline. Notable sellers are accepting offers on properties 10% below the asking price with the average UK discount in April being c£25,000 up from £21,560 in January this year.

Henry Pryor, a leading housing analyst, has worked through three property recessions  and sights that the current market conditions has a frighteningly familiar feel to it. Mr Pryror adds the following:

With some indicators sighting a fall could occur see the potential example below.

As mentioned above house prices in London and the South East have been continually rising due to constant demand in the area. With this demand starting to wane we could being to see property prices fall and the start of prevalent negative equity for the younger generation of homeowners.

Should you or anyone you know be effected by Negative Equity please contact Bell & Company today on 02895 217373 to arrange your free initial consultation. Our team achieve regular settlements with a variety of lenders and understand how your lender operates. We look forward to meeting you.

 

MY HOME IS BEING REPOSSESSED – WHAT ARE MY OPTIONS?

Should you or anyone you know be under stress caused by property repossession or any debt scenario then please contact us today on 02890 517047 and we can arrange a free initial consultation

Northern Ireland Repossession “Hotspots”

Following the setup of The Housing Repossession Taskforce they undertook a review of the market of property repossession in Northern Ireland and identified hotspots. These are listed below:

This demonstrates a “Belfast-centric” approach to the housing crisis in our opinion. As in England where everything is “London-centric” the same applies to Belfast in Northern Ireland. Many individuals in Belfast believe that the economy is improving and that as property prices are slowly increasing in the city then they must also be across the province. They could not be more wrong.

A real frustration for Bell & Company is when we negotiate with lenders either based in Belfast or mainland UK they cannot seem to understand the difference in circumstances or how the location of the property can effect a situation. These lenders also do not understand that when they repossess and sell a property in possession the effect it has on the surrounding area and as we often say to client’s the postcode is damaged and consequently home values are significantly affected in a negative manner.

Conversely when we can deal with local Banks, particularly with our corporate clients we can often see a more realistic approach undertaken by the Bank which is ultimately beneficial to all parties to agree a route forward.

As we have eluded to in previous blog posts when interest rates begin to increase from quarter two of 2016 we will see another surge in property repossessions and perhaps another detrimental effect on property prices in the Province. More “hotspots” will arise.

Bell & Company understand that those living in more rural areas will find it incredibly hard to deal with their negative equity situation but nonetheless we have helped many to move on with their lives and eradicate their debt problem. Our advisors are often on the road across Northern Ireland and Republic of Ireland so please call the office today on +44 (0) 2890 517047 and see if we are in your area to arrange an appointment at a location to suit you. Or alternatively please sign up to our e-newsletter and be the first to be aware of our next network evening when our advisors will be on hand to discuss any debt matter.

We look forward to hearing from you soon.

Terry Bell – Director