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DerekD

Question - House Repos

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Can anyone tell me what actually happens when you can no longer afford to pay your mortgage.

Obviously, i know at the end of the day you lose your house, but how long does the process take ?Do the banks give you a period of grace (e.g. 6 months) if you have recently lost your jobs say? What happens to your posessions, and what if you cant afford to rent? I assume most would go back to family, but i cant believe you would just be kicked out onto the street!

How quickly can the banks sell your property?

Thanks

D

:unsure:

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Can anyone tell me what actually happens when you can no longer afford to pay your mortgage.

Obviously, i know at the end of the day you lose your house, but how long does the process take ?Do the banks give you a period of grace (e.g. 6 months) if you have recently lost your jobs say?

-Depends if they think they can screw more money out of you later. i.e intrest/ fees keeps adding up while you get a job, but if they cant see that then they will reposess.

What happens to your posessions,

-You should give them away/ sell them before the baliffs arive.

and what if you cant afford to rent? I assume most would go back to family, but i cant believe you would just be kicked out onto the street!

-Believe it. It is exactly what happens.

How quickly can the banks sell your property?

Usually they don't allow more than 3 months arrears before reposession.

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Guest Marvin Bush

Don't be silly. Europa says that as long as you can manage the interest repayments on 2 salaries, all tings is proper ok innit?

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How quickly can the banks sell your property?

Usually they don't allow more than 3 months arrears before reposession.

I would dispute this, I recently worked for a bank and I saw a number of mortgages with in excess of 6 months, some even 12 months. Some of these people hadn't pre-arranged this either. I think it has more to do with your earlier point about banks being aware of how much they can screw you before they kick you out.

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Guest casaloco

It all depends on how much equity you have in your house.

If you have little or none they will reposess immediately.

If you have a lot of equity they will let it run and run, racking up the charges until the equity is depleted.

And yes they will quite literally throw you on the street.

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I would dispute this, I recently worked for a bank and I saw a number of mortgages with in excess of 6 months, some even 12 months. Some of these people hadn't pre-arranged this either. I think it has more to do with your earlier point about banks being aware of how much they can screw you before they kick you out.

Indeed, banks dont want bad debt!

As someone who was forced out of rented accommodation, I certainly feel more secure in an owned place. But either way, if you cant afford them bills - ya screwed.

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They won't repo unless they think there is no other way to recoup "their" money. Some banks (indeed some bank individuals) are more helpful than others. It's usually far better for you to sell voluntarily as this will allow you to minimise costs.

If they can keep adding interest and fees and get away with it they may bleed you until all of the equity is gone.

Then they will repo and pass the costs on to you.

If you cannot recover the situation the best thing to do for most in this situation is to declare bankruptcy and crystalise the debts from the repo. Then you can at least start again with a clean slate. Failure to do so mean they can come after you years down the line bar the statute of limitations.

Whatever you do if the banks promise something - like freezing interest payments - get it in writing.

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Indeed, banks dont want bad debt!

As someone who was forced out of rented accommodation, I certainly feel more secure in an owned place. But either way, if you cant afford them bills - ya screwed.

Lets look at this post which contradicts itself!!! (see bold in quote above)

I.e. you don't own it if you are still paying for it!!!

Edited by OzzMosiz

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I would dispute this, I recently worked for a bank and I saw a number of mortgages with in excess of 6 months, some even 12 months.

In a rising market, the house will be worth more after a year anyway, so why not wait and repo later?

In a falling market, they'll want to get their money as fast as they can.

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Lets look at this post which contradicts itself!!! (see bold in quote above)

I.e. you don't own it if you are still paying for it!!!

Don't see any contradiction. He feels more secure presumably because he is now in charge of repayments rather than a landlord.

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Lets look at this post which contradicts itself!!! (see bold in quote above)

I.e. you don't own it if you are still paying for it!!!

err I thought that you did 'own' it. if you take out a loan to buy a banana, does the bank own the banana? I'll have to think about this one, its all a bit philasophical :blink:

Edited by DoctorJ

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err I thought that you did 'own' it. if you take out a loan to buy a banana, does the bank own the banana? I'll have to think about this one, its all a bit philasophical :blink:

Is the loan secured on the banana?

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Is the loan secured on the banana?

No bank would ever secure a loan on a banana.

I mean, what if it went pear-shaped?

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