In the previously buoyant property market, a homeowner’s ability to stop repossession proceedings against their homes was less problematic but the credit crunch has led to a 17% jump in the number of repossession orders.
According to a report in the Mirror, the number of repossession orders being bought against homeowners has risen by an alarming 17% in the last 12 months and the ability for the homeowner to stop repossession being threatened against them is diminished due to the economic circumstances that many households now find themselves in where they can no longer afford their mortgage repayments. In times of more relaxed lending principles, much more could be done by a homeowner to stop repossession but lending institutions are considerably less flexible in light of the current economic slump and the consequence of this is a substantial rise in the number of repossessions across the UK.
Stop Repossession - Financial Struggle
According to the report in the Mirror, as many as 20% of homeowners have fallen behind with mortgage repayments in the last 12 months and this is having a dramatic impact on their capacity to stop repossession proceedings being instigated against them. The extent of the problem is highlighted by the fact that one in five households with poor credit histories have fallen behind with their mortgage repayments in the first 3 months of 2008. When it comes to an ability to stop repossession, the problem is even starker for the one in ten sub-prime borrowers who were now over 90 days behind with their mortgage repayment plans. The credit crunch and the resulting financial fallout has undoubtedly had a massively adverse effect on the ability of homeowners to stop repossession being threatened against them and the situation in the UK now has many parallels with the state of the housing market in the USA which sparked the credit crunch in the first place.
Stop Repossession - Tackling Problems Head On
When it comes to what can actually be done to stop repossession once proceedings have been bought against a homeowner, many are now discovering that sell property, rent back schemes are the ideal solution as it releases the equity tied up in their homes which allows them to service their debt problems whilst continuing to rent their property in order to avoid any unnecessary upheaval.