About home repossession
Home repossession or foreclosure occurs everywhere in the world on a daily basis. This can be thanked to the overall economic situation and the uncertainty of someone being able to keep their jobs for a time long enough for them to be able to repay their debts with the interest for a property they buy with a loan.
The general thing that happens is that a person or a couple want to buy a home or a house and they don’t have the sufficient funds to pay the whole price, that’s when they opt for an loan generally from a bank or a credit institute who offer credits of such nature. When the future owner cannot pay for a home, what generally happens is that they need to mark the property they buy, as the mortgage which makes sure that if anything happens, there is something of financial value which can be used to pay back the remaining debt. A loan is generally paid on a monthly basis, along with the interests which apply for most of the time the debtor is to pay for the property. If one or two month’s payment fails to happen, then the bank has the right to send out a first and a second warning. And if the payment will not be done after these warnings were issues, they have the right to start with the repossession process.
The repossession process is the one, which ends with the debtor having to leave the property, they were to own within a given amount of time. During the repossession period the debtor still has the chance to pay for the bank and stop the procedure. But if he/she is totally unable to do so, then there are only two ways:
As you can see the debtor has several chances to pay the debt back for the bank or the credit institute during this period or to start selling their property either by him or herself, either with the help of a legitimate real estate agency or if it’s a matter of days only, then by a fast sales home company who can pay with cash and they generally pay the less.
Home repossessions happen due to someone losing their job, due to divorce that creates an uncertain financial situation or due an illness which makes someone unable to work for a longer period of time. However we always suggest everyone to try to avoid things to escalate to this point and try to reach an agreement with the bank.