Economy has made it tough on most consumers with the high interest rates and the home owners are the ones that seem to be hit the hardest. With the combination of increasing interest rates and high inflation rates, many home owners are having a difficult time affording their monthly bond payments. Some are hit so hard that they’re facing a possible home repossession. They feel ashamed and hopeless, not knowing which way to turn. The good news is that there are ways to avoid and stop repossession of your home. Contact Your Bank When you have a bond with a bank for the purchase of a home, two parties are involved: you and your banker. When you have difficulty making this payment, the same two people are involved: you and your banker. If you feel there is no help you can give yourself, contact your bank to see what kind of help they have to offer. Some of the help they may offer can be:
A “holiday” or “grace” period of 3 to 6 months where you don’t have to make your monthly bond payment. This period can be used to reevaluate your financial situation to see where changes can be made, to pay off other debts and just “catch up”. Modifying your loan is also a possibility you bank may offer. This may include lowering your monthly payment, lowering your interest rate or taking off some of the balance.
Giving your bond a longer term, which will give you lower monthly bond payments
Contact a Repossession Company
Many homeowners that feel there is no way around having their home repossessed see a home repossession company for advice and possible help. Repossession companies can swoop right down and purchase your home for cash from the bank, thus helping you to avoid the daunting experience of having your home repossessed. One major bonus to this procedure is that it will not show up on your credit history that you’ve had your home repossessed. This is one way to put yourself in a position where you are able to successfully prevent repossession of your home.
Having your home repossessed can get you black-listed at many banks and financial institutions. Not only will you not be able to borrow money to buy another home but you’ll have a hard time getting any kind of credit for up to 10 years. When your home is purchased by a repossession company, this is avoided. Some of the benefits you may get from a repossession company include:
They’ll purchase your home from the bank so it is not repossessed.
They’ll provide their services without a fee.
They’ll provide you with a free assessment of your financial situation.
They’ll direct you to companies that may be able to help you straighten out your finances.
They’ll delay the eviction period for you.
They’ll rent the home to you so you won’t have to move.
They’ll sell the home back to you when your finances are better.
Be Smart Buyers
Another way homeowners can avoid having their home repossessed is by being a smart consumer and not purchasing a home until you’re financially stable and staying within your income when shopping for homes. Banks and newspapers may tell you it’s never been a better time to buy a home but they won’t tell new consumers that they interest may soar in the near future. Be a smart and conservative homebuyer and try to put some money aside for that “rainy day”.