Mortgage Arrears – what does this mean?
A home buyer is said to be in arrears when he or she has missed a series of mortgage payments. That is usually caused by unforeseen financial difficulties or poor financial management. When buyers are in arrears, lenders have the right to take legal action and this is where Rescue My Properties can help you to work out the best way of dealing with the problem.
Mortgage arrears – what are the consequences?
If the home buyer’s mortgage is in arrears, the lender can legally decide to repossess the property and offer it on the market. However, the original buyer will still be responsible for the outstanding debt not covered by the potential resale. This can be a very emotionally charged situation and Rescue My Properties have over 8 years experience in helping clients out of these type of difficult problems with clear direction and fixed pricing.
Mortgage arrears – How are they dealt with by Individual Lenders?
The standards by which mortgages are officially classified as being in arrears are decided upon by individual lenders. For example, lender X might consider two missed payments to be considered too many, while lender Y might consider 4 months as being in arrears.
Mortgage arrears – Do they impact on future purchases / credit ratings?
A person’s credit rating is negatively effected by a mortgage that has gone into arrears. A tainted credit report caused by the buyer’s failure to rectify his or her financial situation may prevent him or her from securing a mortgage in the future.
Mortgage Arrears Prevention
If the buyer is experiencing or foresees some financial difficulties it is advisable for them to contact the lender as soon as possible to discuss the situation. Most lenders will be able to work with the buyer through payment readjustments or payment breaks, until the buyer’s financial hardship is traversed.
Mortgage Arrears and its overspill on Qualifying loans
Buyers are still considered as being in mortgage arrears when payments are not made on loans other than the mortgage. For example, if the buyer has taken out a home equity loan, he or she is still at risk for repossession if repayment fails to adhere to the contractual agreement. Technicalities like these are not always spotted by the property owner, hence, seeking a free consultation from Rescue My Properties to understand your position is critical to knowing how to handle in advance of any repossession problems arising.
Mortgage Arrears in the press
Raising interest rates by 1% could push thousands into mortgage arrears, according to the head of the “bad bank” that holds the loans of Northern Rock and Bradford and Bingley.
Rescue My Properties has extensive experience of helping landlords with buy to let portfolios deal with mortgage arrears.
Mortgage arrears posing an issue – looking for free consultations?
Rescue My Properties have created a total solution to any mortgage arrears, repossession or LPA receivers issue and can give you a free no obligation one to one consultation. Book an appointment: