House repossession is a lengthy process and it really only happens when the property was almost fully covered by the mortgage and when the debtor shows no signs or interest in negotiating with the bank or credit institute for many-many months. This means there are plenty of ways to get out of this situation for the debtor. Let’s show you some of the best ways to avoid any risk of your home being repossessed anytime at all.
Make sure you can cover at least 50% of the total price of a property by yourself: this ensures the bank would not have the right to hold you responsible to pay the total amount of your property, therefore the risk of repossession is minimal as you are 50% the legal owner of the property.
Don’t make the mistake of not opting for a credit or mortgage insurance: these insurances may cost some money, but can save you a big deal from tons of troubles even if you are unable to pay for months, the insurance will cover it for you. And a lot of good things can happen within a few months. You will get time to recover.
Always take the effort to re-negotiate even when the situation turns bad at your end. There are tons of ways to re-evaluate your debts and most credit institutes will be more than happy with any money you can pay on a monthly basis even if you enlarge the time frame or minimise the monthly payback in any other ways.
Always accept and pay attention to any movements around you and do not dig your head in sand. You can easily stop any processes right on time if you are alert and if the bank sees that you also are totally willing to pay back.
Ignoring all the warnings and failing to re-negotiate can have another disastrous effect: your credit history gets tarnished and you won’t be able to opt for a credit in the near future if anytime at all.
If things take the worst ever turn, list the property with a very good real estate agency who can get the highest price possible to be paid for it. You can use the sum you get to pay back the whole credit and use the remaining sum to buy a smaller home for you. This way, you will be freed from the credit and have a place to live.
Remember repossession is the result of a long and painful process which you can intervene anytime, whenever your financial situation changes for the better.
Do not try to get any more credit otherwise you are risking a very serious debt trap which will be very hard to get out of.
Last but not least, try to steer clear from credits, re-evaluate your lifestyle and absolutely do not pile up credit as much as possible. Money is always harder to pay back than to borrow, don’t ever forget that.