Coping with recovery can be a very emotional time in our lives. At the end of the day, as emotional as it is, it needs to be dealt with in the early stages. It is obvious that a situation as dire as this will not simply disappear into thin air if ignored. Unfortunately, many homeowners tend to have this attitude, as they don’t know how to deal with the current situation and it’s much easier to run away from the problem. It is natural to think that we are doomed either way when the bank informs us that they are about to step in and repossess our property. Times like this can put a lot of pressure on the owners’ personal lives and can even be detrimental to their health. However, it does not necessarily have to be this way, the good news is that recovery can be avoided.
It is important to remember that there is no reason to be ashamed of your situation if you are facing a recovery. These things tend to happen in life and are often not our fault. Instead of burying ourselves in our own self-pity, the best thing we can do in a situation like this is to take action and take action immediately.
It’s natural for most homeowners to want to give up and just hand the keys over to their bank; however, this can have extremely negative repercussions down the road, such as getting bad credit. This usually means that the name of the home owner will be blacklisted. Once a homeowner gets bad credit, they will typically be banned from the lending industry for the next 5-10 years. Having a bad credit history would also mean that something as basic as renting a property in the future can prove difficult, as most landlords run credit checks before hiring a tenant. They will also be turned down for basically any type of credit application they apply for. This would include applications for credit cards, shopping accounts, cell phone contracts, etc.
Fortunately the news is not all bad and there is light at the end of the tunnel. There are actions one can take that could help prevent recovery and drastically improve the situation.
All homeowners facing a recovery should take the following steps:
– Contact your bank as soon as possible and let them know your dilemma, they will usually be understanding and respect you for being open and honest. This will also tend to make the bank take a more lenient and understanding approach when discussing the situation with you.
– Arrange a longer-term bond. If your bond is currently for a 20-year term, you can request to change the term to 30 years, this will lower your monthly payments by a small amount. Although it will not be a large amount, everything helps.
– Try to organize a ‘holiday’ period. This is typically a 3-6 month period in which you do not have to make any bond payments. This will give you time to fix your financial situation with the goal of being back on your feet by the end of this grace period.
Then, as an absolute last resort, luckily there are people who specialize in helping struggling homeowners out of their situation. These repossession services are typically staffed by a group of real estate investors who specialize in buying homes for cash and, as a result, provide homeowners with a guaranteed, instant sale before the bank steps in and proceeds to repossess the property. These repossession services may not offer the full market value of the property, but will offer up to around 70-80% of the market value for a quick and hassle-free sale. This can solve the problem for homeowners quite quickly, since these services generally understand how banks work.
Ultimately, the idea is to create a situation where the homeowner is helped out of an extremely stressful and troublesome situation, the homeowner’s bond is paid off, and their credit history is kept intact. As compensation for providing this solution to the homeowner, the real estate investor can buy the property at a slight discount and everyone is happy. These services will even allow the homeowner to stay in their home after the sale by renting it back to the repossession company, which can be very helpful if the homeowner intends to stay in their home.
It seems clear that using the services of a repossession company that can buy houses for cash far outweighs sitting back and simply ignoring the issue at hand only for the bank to step in and claim everything the owner owns, ultimately leaving them with nothing but a bad credit history. It is extremely important that the homeowner obtain such service while there is still time to avoid recovery.