How to avoid your home being repossessed
This may sound to you like a sci-fi, but indeed property repossession is a real thing which in fact happens to thousands of people every single year. Why and how this can happen? There can be many reasons for it but now, we are here to give you a few good advice on how to actually avoid repossession on the first place.
Try to avoid credits as much as possible
This is a golden rule everyone would love to live by. Unfortunately with the current situation and general high prices of properties it is very hard to buy a property without any sort of credit.
Only get a credit which you are 100% sure you are able to pay back
By this we don’t mean you are emotionally sure, we mean you do actually have a larger sum you are saving up specifically as the guarantor that no matter what happens, you can pay the credit for a long while even when you end up losing your job. The golden rule is, pay at least 30-50% of the total price of a property in advance and have around 30% of the part you need to pay back. This seems harsh but credit amounts which are topped with interest can get dangerously and unexpectedly high. If you get a credit be prepared for the worst and most importantly: be absolutely clear on how much exactly you need to pay every month.
Always have a credit insurance – Credit Holiday
Credit insurance is a little extra you need to pay each month. In return it can do a huge favour for you, when you are in trouble with the risk of home repossession. In fact, some of the insurance can enable you to go on a credit holiday for over a full year. Which is a big deal. Use this time to get yourself together, rent out your property if needed and do everything so that you can collect enough money to pay back your credit on time.
Don’t ignore the issue
If the worst has happened and you can officially declare bankruptcy you ought to get in touch and start negotiations with your credit institute and bank as soon as possible. There are many emotionally based prejudices against banks which make people not contact banks or credit institutes as they think the retribution will come anyhow. But in real all these institutes do want to help without taking in to court: because that’s a great loss of time. Therefore they are ready to offer handy resolution to everyone being in trouble.
Be ready to negotiate
There are tons of possibilities that can be offered for you once you report your inability to pay well on time. That’s exactly why this step is so important because what you need the most is to win time in order to be able to start with the payback as soon as possible.
Step when necessary:
And sell your property proactively. This way you can win way more and don’t come out with bad credit score.
Property or mortgage repossession is a painful process which results in owners losing their property which will be auctioned away at worst. Keep these advices and you will not get in trouble with your bank. #