Not all ‘doom and gloom’ if facing repossession
Article Category: IVA (Individual Voluntary Arrangement) Help and Advice
The threat of repossession is not a "doom and gloom" situation if borrowers take adequate measures early enough.
There are "options" available to struggling homeowners behind on their mortgage repayments but they must not act as if it is not happening, the Repossessions Advice Centre said today.
Director Paul Fletcher said that most lenders were prepared to put in place a repayment plan but sometimes this was not in the borrowers’ best interest.
He says that desperate debtors sometimes agreed to these plans without looking at the alternatives, such as going to court if their lender wants to put in place a plan which is too onerous.
"If somebody’s paying a £500 a month mortgage and they’ve been failing to keep up payments, and the lender says :’We want £700 to clear the arrears’, and the clients says ‘ok’ out of desperation – how the hell can they afford it?," Mr Fletcher told MoneyNews.co.uk.
He went on to say that borrowers should not "bury their heads in the sand" and advises them to address the situation before it was too late.
This advice may well have to be heeded by more people next year if, as expected, repossessions start to climb.
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