Corby Named as One of the Country’s Repossession Hot Spots.
Following this dubious honour, residents of the Northamptonshire town are being urged to seek help before letting lenders repossess their homes. Things ia are not as clear cut as they seem, however. Recent figures from Britain’s Council of Mortgage Lenders show 11,400 repossessions in the second quarter of this year, 25% of which were voluntary. That is, the houseowners concerned simply handed in their keys without seeking help or assistance.
At the beginning of September the government launched a national campaign that will see £130 million invested in the provision of free face-to-face debt advice via Citizens Advice Bureaus. An article that appeared in a recent edition of the Corby Evening Telegraph quotes MP Phil Hope, who represents the area at Westminster, as saying that there is hope out there if people know where to look and, as part of this campaign, advertisements are to appear in Corby telling people where and how they can find that help.
Voluntary Repossession: The Facts
When faced with redundancy, reduced hours, sickness, or any of the other afflictions that affect the ability to pay your mortgage, voluntary repossession can seem like the best option. It can be so tempting just to hand over the keys and walk away. Like most things in life, however, it is not quite as easy as that. For the full story, read our article Voluntary Repossession Facts. The simple fact is that, even if your mortgage lender suggests this course of action – think twice.
Back in April of this year, one correspondent wrote: “i have just handed my keys back to the mortgage company and we had our house valued in october 2008 it was valued at 222,000 The building society have just put our house up for sale ai 135,000 surely this cant b right” Sadly, this experience is not uncommon.
Remember, if you choose to hand in your keys:
- You will have to pay the mortgage until the property is sold
- You will have to pay rent on an alternative home
- The proceeds of the sale will be used to pay mortgage and insurance debts
- You will doubtless pay a penalty charge for missed mortgage payments
This is why it is vital that you explore every avenue. Even if you don’t live in Corby, it’s well worth contacting your local Citzens Advice Bureau. You could also take a look at the Government Mortgage Scheme , which was set up to provide help for those with financial troubles.
With many financial authorities predicting further falls in property prices and more job losses, it could pay you to find about the various options sooner rather than later.