Lenders acting earlier according to National Homebuyers
More people may find themselves struggling to avoid repossession as lenders start proceedings earlier.
[UKPRwire, Tue Feb 19 2008] According to legal firm Moore Blatch, sub-prime lenders in particular are acting earlier in order to protect their own position.
It comes amid reports that sub-prime lenders are beginning disproportionately more repossession actions than other types of lenders.
It means that more people are living under the spectre of trying to avoid repossession.
"The problem that lenders face is that it takes a long time to get a property into possession," Paul Walshe, head of lender services at Moore Blatch told BBC Radio 5 Live's 'Wake Up to Money'.
"And for lenders who have a portfolio – particularly in the sub-prime – a lot of those lenders have securitised portfolios, and those types of portfolios are investment vehicles and therefore they need to perform.
"So they need to protect their position to ensure that the mortgages that make up that portfolio are performing," he added.
Mortage Rescue Scheme providers National Homebuyers say that it's also up to the borrow to act quick to avoid losing their property. "Burying your head in the sand will not make the problem go away" says director Julian King.
"Homeowners facing financial difficulty must act quickly to avoid the worst.
"Mortgage Rescue solutions like Sell and Rent Back exist to help the borrower who is experiencing repayment problems. Sell and Rent Back is a simple solution that allows the homeowner to sell their property for up to market value and rent their home back on an assured tenancy agreement.
"However, homeowners must be sure of using a reputable national company".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that completes at a timescale to suit the vendor. The company is also the leading provider of mortgage rescue solutions such as Sell and Rent Back.
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