It's always a good thing to admit when things are not working too well for you financially.
It is the failure of many people to admit that things are not too well that leads to the situation when the lender has to come in and sell our property.
When you let this take place, you will need to remember that what your lender is interested in is getting their money back.
If it happens that your arrears are too large and the value of home has possibly fallen so low that the outcome will not suffice, the lender will take all the money that will accrue from the sale and you will still be liable for the balance until they recover all their money from you.
It is this difference that is called the shortfall that you will want to avoid it at all costs as you try to sort out your debt with the mortgage company that is after its money.
You need to calculate to be sure you will not be subject to a shortfall regarding your arrears before you let the lender take over selling your property to recover the debt.
There are also some costs that go with selling a property through a property investment agent, valuation and other legal fees that you will also need to take into consideration.
It is all these that you must add up to come up with the total debt you owe the company and if this will accrue from the sale of the property in the traditional way.
Apparently a big percentage of houses that are repossessed are subject to shortfalls because the lender is most likely going to put the property on an auction where all bidders come looking to make a kill in the purchase.
Most of the time the going price is will be way below the mark; leaving you to take care of the difference and you're homeless at the same time.
Imagine how stressful it is going to be for you, homeless in the first place and then you receive a call from the lender informing you that they need to know how you are going to pay up their balance.
You lender and insurer will send you a detailed financial statement about what they have done and what you still owe them.
This is one of the things that anyone who is facing repossession will really be afraid of and will want to avoid at all costs.
Suppose you do not want things to go that far, what viable options do you have at your disposal? One of the most common is the sell and rent back scheme where you get a property developer to give you quick cash in exchange of ownership of the house.
You get enough money to clear up your debts and in some cases some little equity may remain.
Thereafter you become a tenant paying monthly rent instead of mortgage.
Failure to take an initiative and going this direction will actually lead to bigger problems than you are already in.
one other thing you will have avoided is going into bad credit books because you will find it extremely difficult to even get a tenancy due to your records with credit reference bureaus.
All intending lenders always check credit history before you can borrow money to buy your next home.
You can avoid getting into these problems by talking to a reputable sell and rent back firm that can assist you sail through and get a chance to recompose yourself when you are back to your feet again.
When in trouble with repayment talk to professionals and they will advise.