Repossession Rescue

The uncertainty in the housing market and rising unemployment as well as the impact of the credit crunch has put many homeowners in a position where they face unsustainable mortgages or are in a negative equity situation. This then results in people facing financial difficulty in keeping up repayments on their mortgage or other loan secured against their property.

The reason why we wish to help people in this area is largely because of the findings of the following report:

In the Joseph Rowntree Report the social consequences of repossession for parents and their children we learn that the repossession experience can have distressing and enduring social, psychological and health consequences for both parents and their children. The experience of mortgage repossession and subsequently re-housing was immensely stressful for the families interviewed. This stress was compounded by the protracted administrative processes and procedures of the lenders, the courts and local authorities. Mortgage repossession was often a route to long-term poverty and substantial debt. The experience of mortgage repossession involved extreme emotional responses and people described the profound sense of loss they felt after losing the family home. Both parents and children felt ashamed at their move from the status of 'owner' to that of 'renter'. The experience of repossession had consequences in six main aspects of people's lives. It altered: their social status and identity; their personal and family relationships; their health and well-being; the quality of their lives; their future hopes and aspirations; and the lives of their children. The experience of the processes of repossession impacted upon the lives of families for some time after the event. People described how they did not have any control over the events associated with the repossession, despite the fact that they all worked hard at trying to find solutions to their problems. They had all endured long periods of uncertainty.
See www.jrf.org.uk/knowledge/findings/housing/829.asp.

The number of properties that are currently being taken back by lenders is now at an all-time high and the stress that this causes to homeowners who are in a difficult financial position is tremendous.

At RPS, we aim to prevent the property being repossessed by acting quickly to purchase it from the owner allowing them to avoid a costly and lengthy repossession process. Please note, we are not part of the FSA approved sale and rent back scheme and therefore we are unable to offer a rent-back facility to homeowners who are seeking this.

One of the problems with the repossession process is that when properties are taken back by the lender, they are generally sold via the at figures below their true value. This is even more apparent now where properties are being sold in auctions where there are very few buyers around. Frequently properties are sold for less than the outstanding finance on them and this results in the previous owner then being asked to pay back the difference. This last step can be enough to push people into insolvency effectively making a bad situation even worse, so we want to help people avoid it.

We aim to buy quickly and try to keep owners out of court and also preserve their credit rating. If you feel we can be of assistance to you and want to discuss your requirements further in confidence, please contact us.