Repossession - How does it affect me?

Helli2020 · 24 September 2010 at 4:06PM

I have a small property portfolio that has been effected by crap and frankly "pond life" tennants and now i am well behind on mortgage payments and they are going to reposses 2 of my properties.

How does this effect me and how do i get out of it !

koexelek · 24 September 2010 at 4:14PM

The bad news is that your credit rating is going to be destroyed:(

The lender ultimately holds the mortgage holder responsible for the payments, regardless of whether the tenant is paying the rent or not.

Helli2020 · 24 September 2010 at 4:18PM

i thought as much, but in terms of what happens next, will they take a payments plan or do they just sell it...........and what will i be held to pay for?

koexelek · 24 September 2010 at 4:26PM

I am sure any lender will only want to repossess as a last resort, so I am pretty sure they wil accept some sort of repayment plan.

The best thing you can do is to co-operate with the lenders, and say you want to try and rectify the situation

Rover35 · 24 September 2010 at 4:26PM

Once the court gives them the right to act they will sell the property. What makes matters worse is if there is a shortfall after the mortgage is repaid, their fees are paid and the back interest is added they will keep after you for it.