Mortgage Shortfall & Property Reposession
You will have seen this warning hundreds of times, it is there for good reason. However, with immediate action you do not need to loose your house, In the majority of cases mortgage shortfalls are caused by people having other unsecured debts that they have been paying in priority to their mortgage. This is quite understandable as mortgage companies are often less likely to write to you or be on the phone if you have missed a repayment or four as their debt is secured against your property.
On the other hand the companies with whom you have unsecured debts are extremely proactive if payments are missed as they do not have the same security. Therefore, they are quick to bombard you with letters and phone calls threatening you with extra interest or late payment charges and all sorts of collection or legal action if you don't pay. As a result it is far more likely for you to pay the people who 'shout the loudest' and this is usually at the expense of your mortgage payments. For a short while it seems to do the trick but sooner or later the letter arrives to say you are in arrears with the mortgage and thats when panic sets in.
The way to solve the problem depends on several things:
- How quickly you are prepared to act
- How much unsecured debt you have
- How much your mortgage arrears are
However, if things have gone further and your lender is taking repossession proceedings then one of their national network of lawyers can present the rescue plan to the court and stop the action to repossess your home.