Solutions For Home Owners In Negative Equity | Move On With Your Life

By: Swift Property Buyers  01/05/2011
Keywords: negative equity solutions

Negative Equity occurs when the value of a house is less than the outstanding balance on the mortgage and it is estimated that nearly 2 million home owners are now in negative equity. As the financial crisis deepens and the credit crunch begins to bite, there is evidence that the banks are aggressively repossessing borrowers who fall behind with their payments.

Of course, negative equity can be only a temporary situation while the property market it so depressed. When prices recover, so will thousands of homeowners' equity position. The real problem is the recent wave or mortgage offers with short term, introductory rates followed by high follow-on rates.Gone are the days of a 25 year mortgage at a reasonable rate. The banks active encourage remortgaging every few years to boost their fees.

Another problem in these austere times is job insecurity. If a homeowner loses their job and are also in negative equity they really have nowhere to turn. They can't sell without taking a large loss that they have no hope of repaying. Houses aren't selling outside the capital anyway. So the poor, squeezed homeowner sits in the negative equity house until the bank eventually repossesses it.

Swift Property Buyers have a solution to this sorry tale. We can effectively 'baby sit' the mortgage and make the repayments while the owner move on. The seller gives us an option to buy the house at an agreed price. This price could even be more that the current market price. While this option is in force, we'll look after the house and often improve it. We'll maintain and insure it so the seller has peace of mind that he can move on and forget the responsibilities of the house.

Our Negative Equity Solutions can stop the bank from repossessing the house thus protecting the seller's credit score and avoiding the stigma attached to repossession.

Keywords: negative equity solutions