How can you get repossessed?

ManAtHome

Unless you go to one of the brokers featured on TV - they're more than happy to knock upa few payslips for you...

Generali

lynzpower wrote: »

er dont you have to produce payslips and bank statemetns whne you apply for mortgages these days??

Not in the Wonderful World of Self Certification:

"A self certified mortgage addresses the needs of the self employed and freelance, enabling them to draw the funds they require without having to prove their income. The onus is placed back upon the borrower who makes a declaration as to their earnings and no further checks are made. No documentation is required to prove their circumstances, their word is considered sufficient."

Alan_M_2

In the late 80's I worked for a Lloyd's underwriting firm in the city, I went to work one Monday morning to be met by the official receiver (along with the rest of the staff), no warning, no salary, no redundancy, no severance pay.

Say you'd bought 6 months earlier and it was a new build - the market value could easily be less than your purchase price.

It doesn't take long for the !!!! to hit the fan in these situations.

KellsBells

lynzpower wrote: »

er dont you have to produce payslips and bank statemetns whne you apply for mortgages these days??

Not always, lynz, some dodgy lenders allow you to self cert just by seeing your bank accounts.

Poppy9

Lots of reasons why people get repossessed . Common ones include:

• Remortgaging to release equity in their homes to extend, modernise, education fees, medical bills etc.
• As mentioned redundancy, ill health not long after buying.
• Unable to sell quickly.The bank may not give you time to wait for a buyer.
• Death of one of the partners and insurance not paying out.
• Negative equity. For whatever reason the property you have bought hasn't appreciated.

shelly

ukbondraider wrote: »

In this climate of rising house prices, how the hell does someone get themselves in a position where they get repossessed.

Surely if you get into financial trouble you could sell your house at a lower price than the market to attract interest (which will no doubt still be more than what you paid for it) pay off the mortgage and then start again when you get back on your feet?

i.e if you paid £280K for a place 5 yrs ago and get into financial difficulty you could sell your house which now would be worth around £400K for at least £300K and repay the mortgage.

I really do not know how the hell someone can get repossessed in todays market. Do people simply rather wait for repossession to try and get the most for their house? Wouldnt you prefer to sell it cheaply and keep your credit profile in tact for future acquisitions.

Maybe I am missing something but it is so annoying if such repossesions are due to remortgaging to buy cars/holidays etc. If this is the case then such people deserve it.

What's the point of this thread?

Does it matter to you why people get repossessed? Or did you just want to start a debate/argument with some of your comments?

Doozergirl

Some houses get repossessed because the 'owner' had no intention of ever paying the mortgage. Somehow they obtain a mortgage fraudulently, and live in it or rent the place out until it gets repossessed.

If you look at some auction properties, and check against the date of the last purchase on one of the house price websites, it's fairly obvious that they can't have even made a repayment.

Romani_Ite_Domum

ukbondraider wrote: »

In this climate of rising house prices, how the hell does someone get themselves in a position where they get repossessed.

I think you are mssing something here. In 75% of postcode areas, prices are falling. Its not that easy to sell your house. Either you have to sell it for more than you owe or get repossessed.

Doozergirl

Romani_Ite_Domum wrote: »

I think you are mssing something here. In 75% of postcode areas, prices are falling. Its not that easy to sell your house. Either you have to sell it for more than you owe or get repossessed.

Where did you get that information from?

Romani_Ite_Domum

Doozergirl wrote: »

Where did you get that information from?

http://www.ft.com/cms/s/0f2fbd04-bdb0-11db...00779e2340.html



Ok should have said static not falling.

only a quarter of the 2,300 postcodes in England and Wales actually enjoyed increases in prices in the final six months of last year.