Mr V – Repossession Case Study
After the unexpected death of his father, followed by losing his job both on Christmas Day with little hope of finding a new job, Mr Vs life was turned upside-down within a matter of days. He didn’t know what to do or how to cope with it. So like many would have done in this situation Mr V did nothing. That was until 6 months later he received a repossession letter from his local court with an eviction date.
We received a call from Mr V when he had just 3 weeks left before he had to leave his home. We arranged to meet him at his house within 24 hours of his initial phone call. Once we met Mr V and understood Mr V’s financial situation we then put a plan together to help him achieve the best possible financial outcome for him and his family.
As Mr V had the opportunity to move to a friend’s house, we suggested that he should concentrate on packing his belongings up and moving as much of his possessions out of the house. Mr V gave us authority to contact his mortgage provider to verify how much he owed to them and how much arrears had built up on his debt. We agreed the value of the house with Mr V and agreed to pay him the difference between what was outstanding to the bank and the market value of the property (the equity).
Mr V is happy now as he no longer has the bank chasing him to pay his mortgage, his arrears and his court costs. He is very happy as he is not going to lose his equity, in this case several £1,000’s as we have agreed to pay him this equity. If the house had been repossessed he would have lost this equity, the bank could also demand more payments in costs and if the house had been sold for less than he owed on it they would chase him for that shortfall too.
We now make the monthly payments to the bank along on Mr V’s behalf with all other bills and maintenance costs until a suitable buyer is found for the house.
Case Study – Can’t Sell
Mrs H’s house had sold several times since it had been put on the market with local estate agents, but each time for one reason or another the sale had fallen through. For Mrs H this was a big problem. Mrs H had found her dream property and the owners were pushing Mrs H to complete on the house before she had exchanged contracts on the sale of her house. Mrs H was worried that if she completed the sale on the new house and the old house failed to sell again, she would be left with 2 mortgages to pay or worse than that a new mortgage and a large bridging loan.
What should Mrs H do? Let her dream house slip away or put herself into a financial situation that might leave her losing both the new and the old house as her finances would be so stretched that she can’t afford to pay the debts.
Mrs H contacted us and we suggested that if Mrs H was running out of time to sell her property, would could consider selling for a reduced price in exchange for a fast, guaranteed sale. To assist Mrs H further we also agreed to pay her legal fees for the sale of her property. Mrs H was happy to agree to a reduction in price for a guaranteed sale within a guaranteed time scale to suit her and delighted to save money on the legal fees. We agreed a suitable purchase price with Mrs H that was acceptable to both parties and the sale was completed to the agreed timescale. Mrs H was able to complete the purchase of her dream new home with time to spare. She is now enjoying her new home, exploring the new area and proudly showing her new house to friends and family.
Mr R was a Civil Servant who owned a 1 bedroom flat near Bradford, and was relocating due to work commitments. He had has his property on the market for a number months with no serious offers. Time was pushing on and Mr R was getting concerned about what he would do, he had already dropped the price 7 times to what he owed on the flat and had tried 6 estate agencies he could do no more.
He contacted us and we arranged that we would manage the whole situation for him so that he could move forward with his life. This was all agreed on the Thursday and he simply passed us the keys, got on the plane to Australia on the Saturday, safe in the knowledge that the mortgage, council tax and all the other bills and maintenance costs associated with the flat would be taken care of. The next time he will be contacted by his Solicitor will be to inform him that his flat has been sold.
Mrs R had purchased a couple of Buy-to-let properties a number of years back when the market was at its height. Initially being a Landlord was everything that she wanted it to be, until the introductory mortgage rates finished, the properties were beginning to look a little tired, money was needed to be spent on them and all equity had disappeared in the crash. Then the reality of having to fund each of the mortgages by £100 per month and no equity in the property was not quite as exciting as it was made out to be.
It was at this stage she contacted us as she could not keep on subsidising her properties every month. We agreed to take on her property paying all bills including her mortgage and all maintenance costs until the property could be sold leaving her able to walk away from the properties and saving the money she was spending every month with no hope for an end in sight.