Repossession.net

House Repossession Numbers Could Be Cut If Banker Bonuses Are Reduced

admin — Wed, 30 Jun 2010 06:52:40 +0000

Bankers get massive bonuses, this is something we’ve all become painfully aware of in the last few years and these bonuses go on and on no matter what the economic situation. Those who aren’t too keen on the whole bonus structure will be happy to hear about the new 50% tax on bonuses and now the Bank of England has told its banks to cut bonuses and reduce dividends and put the money saved to one side to safeguard against the current risk in the Eurozone.

The Bank of England estimate that for every £10 million saved, around £50bn of lending could be sustained which would help new mortgage lending and prevent house repossession from taking the property of homeowners. Do you think the lenders will cut back on bonuses? It’s unlikely if they are to continue providing jobs in the City as employees will simply go where the money is.

Repossession Is In The Air

admin — Mon, 28 Jun 2010 09:44:41 +0000

If you were around a few weeks ago you may have read about ‘the good pirate’, a repo man who specialises in repossessing ships from impounds. If you missed it, you can have a read here. Anyway, it’s not just ships that have repossession worries, jets and aeroplanes can suffer at the hands of the repossession order as well. Just imagine all those private jets that are a missed payment away from being snatched, leaving the bemused celeb to get the bus!

Anyway, if you’re bored you can read a little more about plane repossession here…

Home Owners Avoid Repossession But Risk Could Be Unknown

admin — Fri, 25 Jun 2010 08:31:28 +0000

One of the major problems that lead to the recession and credit crunch was the accumulation of high risk borrowers and subsequent bad debt. Despite the cataclysmic results over this strategy, lenders could still be skewing the risk held on their mortgage books by failing to include figures on the number of mortgages agreements that have been changed to avoid repossession for the borrower.

Forbearance strategies from lenders are responsible for helping people work through their financial difficulties and still pay their mortgage back. These strategies include extending the mortgage term, changing a loan to interest-only and lowering the monthly repayment but these methods could be affecting the accuracy of the lenders’ company accounts.

Repossession Laws Help Landlords Move Tenants On

admin — Mon, 21 Jun 2010 07:25:23 +0000

Did you know that private landlords now account for 17% of all repossession claims in the rented property sector? OK not the most stimulating news but it’s true and up from 11% in 2004 according to legal information provider Sweet & Maxwell. What this means is private landlords not receiving rent from tenants and issuing an order to get the flat back.

In the UK, 14% of households are rented from private landlords and the high number of repossessions is attributed to the recent credit crunch which has left tenants with a reduced income. In addition, landlords have been affected themselves and have used repossession laws to quickly remove an unpaying tenant and filling the void.

Less Saw House Being Repossessed Than Predicted

admin — Fri, 18 Jun 2010 07:41:48 +0000

The Financial Services Authority (FSA) has revealed figures showing that a total of 10,500 home owners saw their house being repossessed in the first quarter of 2010, 11% fewer than the previous three months. As interest rates remained low, there was also a drop in the number of people who fell into mortgage arrears, 40,500 people got into arrears, 2% fewer than the previous quarter.

Around 362,000 mortgage holders in the UK are behind on their repayments but as high as that sounds, the figures are in line with ones published by the Council of Mortgage Lenders (CML). As for new lending, despite looser criterias and lower deposit requirements, only 2% of new advances went to those holding less than 10% as a deposit.

A Repossession Can Be Interesting…

admin — Wed, 16 Jun 2010 07:34:50 +0000

As you would expect, here at the www.repossession.net blog we often write about repossession and generally it’s not a ‘light read’. But now and again something on topic but a little more easy going catches our eye and today, exactly that has happened. Take a look at this BBC article about ‘the good pirate’ who repossesses… ships.

FSA Stop Repossession Being The First Choice

admin — Mon, 14 Jun 2010 08:19:47 +0000

The Financial Services Authority (FSA) has revealed new plans to help homeowners stop repossession when they face financial difficulties. Due to be introduced in the next few months, the proposals will help to remind lenders and borrowers that repossession is always a last resort after all other attempts at repayments have been made.

As part of the new plans banks and building societies will be required to record all phone calls with borrowers in arrears and keep the recordings for three years. The FSA has also brought in measures to establish extra control over the sell and rent back industry which contains companies that buy homes of those in financial difficulty anf then rent them back to the previous owner.

Repossession Order Numbers Stay Stable Due To Low Interest Rates

admin — Fri, 11 Jun 2010 06:17:12 +0000

Last week the Bank of England gave a stark warning that any rise in interest rates would cause more homeowners to face a repossession order as mortgage repayments would become more difficult to make. Thanks to low interest rates, the cost of running a home in the UK has dropped significantly which as kept the number of nationwide repossessions in check.

The reduction in costs over the past two years has seen a 19% drop in annual mortgage payments, with the Bank of England taking interest rates to the all-time low of 0.5% back in March 2009. Its annual Financial Stability Report , the Bank of England noted that mortgage payments have only continued to be affordable in many homes because of the low rates.

Sale And Rent Back Companies Face Tougher Rules

admin — Wed, 09 Jun 2010 09:01:37 +0000

New rules to control the repossession, arrears and sale and rent back market came into play this week with an aim of placing tougher standards on companies offering customer help. The rules come at the same time as plans to make all mortgage advisers accountable for their actions.

The focus of the changes is to crackdown on poorly run sale and rent back companies that target customers who are facing repossession or need cash quickly. Although there are reputable and honest organisations in the market place, there have been numerous complaints of misleading advertising, low valuations and extremely short-term tenancy agreements made regarding some of the others.

New Scheme To Avoid Repossession

admin — Mon, 07 Jun 2010 08:44:22 +0000

A new service has been launched by Sedgemoor District Council in conjuction with the Citizens Advice Bureau to help home owners in difficulty avoid repossession and stay in they homes. It’s been named the Repossession Prevention Loan Scheme and is funded throught a Government grant of £38,000 which will be used to give households a small, interest free loan.

To qualify for the loan, householders need to register with the Credit Union and agree to save an agreed amount each month. In return for that commitment, the scheme will agree with the lender to clear some of the outstanding debt so that the owner can remain in their home. It’s a great example of doing something positive, no matter how small, to keep home together.