The following is a guest post.
Repossession is a terrible thing for anyone to go through, though it can happen to people from all walks of life. This fact was proved quite clearly when a famous actor was forced to sell his house fast, or find alternative funding, for his mansion in the US.
It was reported that Rush Hour actor Chris Tucker is now facing repossession of his multimillion-dollar homestead in central Florida, after SunTrust Bank filed papers against the comedian earlier this month (October 14th). According to records, the Rush Hour star bought a 10,000-square-foot lakefront home for $6 million dollars (£4 million), only to experience the housing market crash just a few months later.
If you think you are facing repossession, you should take action as soon as possible by following a number of tips endorsed by Shelter, the housing and homelessness charity. It first tells people to speak to their lender as soon as possible if they feel like they cannot pay their mortgage, as there is always the chance that they can negotiate terms that may allow you to keep your home.
Secondly, ask if a lender will allow for a temporary payment holiday, consider adding arrears to a mortgage loan, or allow you to pay off your arrears in installments. Lenders may also agree to extend mortgage terms and could help you make payments over a longer period of time.
If you’re in the position to do it, Shelter recommends that you rent out the property and rent somewhere cheaper. Still, there is likely to be a mortgage agreement term preventing that you do this, so you would again have to get permission from your lender.
If it’s possible to sell your house quickly, do it. You can, of course, go for broke and change your type of mortgage as you may be able to switch to an interest-only package. However, if the worst comes to the worst and proceedings begin, you must turn up to court. Shelter explains that “if your case goes to court make sure that you turn up – even if you think that your situation is hopeless, you may still be able to save your home”.
The charity concluded: “Don’t simply hand in the keys. This will not solve your financial problems, you will still be liable for the mortgage until your home has been sold, or any shortfall repaid.”