Having your own property is a time-honored symbol of stability and security. To go through property repossession can be a frightening and harrowing experience. The key to dealing with the situation is to be informed and to stay informed. You must know at least the basics of owning property and how to keep it. Obviously once you have fully paid for a piece of property, it should be wholly yours to keep. If you haven’t paid for it yet then there is a big chance for you to lose it if you should fail to do so.
You must also know the basic course of action that you will have to take once you are about to go through property repossession. Here are a few things that you need to know regarding the matter:
1.Property repossession happens when the financial institution from which you borrowed the money to pay for your property takes back the said property for your failure to repay your debt. This is when you used the property as collateral to guarantee the debt. Property repossession may also happen in cases of lease wherein the renter fails to pay his rent in due time.
2.Repossession is an act based on a contract signed by you and the lender. In that contract you agree that the lender will have the right to repossess the property in the event that you, as the borrower, fail to pay your debt and have gone past the grace period provided. The lender cannot just claim possession of the property if you have not settled your account for a week or even two weeks. Most institutions give a grace period of usually 60 days or more before an action for property repossession is filed. This is something you need to know by reading the contract before you sign it.
3.In most jurisdictions, property repossession is not automatic. There are certain rules that the lender must act upon in order to validly claim possession. First, they must give you proper notice and give you a good chance to pay your debt before claiming possession. This is especially true if the property involved is your family home. When this chance is given you must take action quickly if you wish to keep your home. You can enlist the help of professionals who can help you deal with a situation such as repossession. There are housing advisers or financial advisers who can help you with the matter. You may also ask your local council for help.
4.Remember to always talk to your lender. The tendency with borrowers who fall into arrears is that they hide from their creditors. This is not a good idea and it will only make matters worse for you. Talk to your lender as soon as possible because they will be able to provide you with options and actually be able to help you settle your account.
5.If ever your property is in fact repossessed, it will be sold off and the proceeds of the sales are to be used to settle your debt. If the price for which the property was sold is higher than that of your debt, you are entitled to the remaining balance. You must claim this from the lender. However, if you really cold not pay for your property, it is better if you find a buyer yourself and sell it rather than wait for the lender to repossess it and sell it later. This is because the lender will be selling it for a price lower than you could have sold it.
Find out how to stop home repossessions and figure out a way to sell your home quick.
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