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Two words: Credit Crunch. We’ve all heard about it – and you may be one of the many unfortunate people out there who is suffering from its affects. One of the most unpleasant side effects of the credit crunch has been the rise in the number of repossessed homes.
There are many people out there who borrowed against the rising value of their homes, either by remortgaging or by running up large bills on credit cards with the rationale that they would be able to borrow against their homes at a later date, or make up the shortfall with a notional return on their investment following a future
house sale.
In the kind of fast moving market that we experienced even as little as two years ago this was not altogether unwise and a classic case of making hay while the sun shines. Unfortunately the rapid souring of the economy has taken many people by surprise and put paid to these plans for using increasing home value as leverage to borrow more. Consequently large numbers are facing the very real prospect of repossessed homes.
The Council of Mortgage Lenders are also citing higher food and energy bills among the factors that are major contributors to the 21% rise in repossessed homes in 2007. Coupled with last year’s 8.6% rise in the number of mortgage-holders behind on payments, falling house prices, inflation and the increase in mortgage interest rates the situation for those with credit problems is looking bleak.
The bottom line is that it’s taking longer to sell (if you can sell at all), buyers are offering less, remortgaging is more difficult, (especially with adverse credit), and if you are able to remortgage at all you will be facing much steeper payments – a factor that may only compound your credit problems.
Last Seconds offers a way out of credit problems in difficult times; using our ‘Rent to buy’ option, you can sell us their residential or
commercial property for cash and rent it back from us to full homeownership. We will even buy repossessed homes, offering a lifeline to those who thought all doors were previously closed to them.
Repossessed Homes
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