The worst thing that can happen for a homeowner is to lose his home, however that does not mean this is the end of your financial problems. It can get worse, since with the current financial crisis, your property can be sold at a lower price than it is actually worth and, of course, you will need to get more money in order to be able to pay your debt.
If you want to avoid this nightmare, it is very important that you do not sign any loan documents that ask that you to secure the debt against your home, unless you are sure that you will be able to pay it. Usually, these are written in fine print at the bottom of the contract, because this way they benefit the loan dealers. Because there were several such cases in the past, these warnings are nowadays required by law, so that the public is aware that their home is at risk if they do not make their payments.
The most common place where you will find such a warning is the credit card, because in the financial world they are considered an unsecured finance. The other common loan that you will find in which you need to secure the debt against your home is the second mortgages, mostly as a measure of security for the money agency that gave you the loan.
However, in case you are unable to pay your rates, the only way the creditor can take your home is through a county court order. This method can take some time before put into practice and thus leaving you some time to get the necessary amount of money to pay your debt and ask the dealer to withdraw his complaint.
One of the things that you should always be careful about are the promotions and certain deals, even if they are from reputable companies. At first you may not have to pay anything, however keep in mind that all financial offers are limited and afterward, you may have to pay higher interest rates than you can afford.
Nonetheless, this method is only used by reputable money agencies and there are other methods that can leave you homeless, especially if you are desperate for a loan. Loan scams are found everywhere on the internet and represent one of the leading causes for people losing their homes. Therefore, make sure that you search some reliable information about a dealer, particularly if you intend to work with an online dealer, before you give away personal information or worse sign a loan contract.
Nicholas writes for a debt related site that offers debtnation.co.uk/repossession.html repossession advice for people having debtnation.co.uk/missed-mortgage-payments.html problems paying a mortgage.
No comments:
Post a Comment