What happens if I cannot pay my mortgage?
Let’s be honest. Right now, through no fault of their own for some its getting tough. We are potentially facing a severe recession. Some even say a depression worse that the late 20’s early 1930’s.
Many are asking what to do especially as regards their home. Interest rates are rising, inflation is getting worse and many are thinking (or needing) to sell their home. It’s often tempting to look to do a quick sale, even at a discount. But what if you need extra cash to settle some debts and have something left to move on with? Given many people typically live up to (or above) their means, selling at a big discount (below market value) might be the worst thing you could do.
In the event the seller goes bankrupt or into an IVA, (a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time) - the official receiver or insolvency practitioner has the right to look at their assets prior to them becoming insolvent. They have a right to challenge and overturn any transactions that disposed of assets which left the seller unable to satisfy any legal debts.
In lay terms, this means a discounted fast-cash sale could be overturned leaving the buyer/investor out of pocket and the seller in deep trouble.
It's an offence under the insolvency act to dispose of an asset which leaves you unable to satisfy your debts or to undertake any transactions to favour paying one creditor over another. Given mortgage lenders are aware of and vigilant over distressed sales, it makes sense to make yourself fully aware of what you can do to protect yourself and your assets. Whether you are buying or selling.
It also makes sense to explore all options available before making any decision as to what fits your situation. Whatever you do make sure you're properly informed before you proceed.
Hope this article was useful. Feel free to get in touch if you want to discuss how we can help. I am always here to help with respect, discretion and integrity.
Repossession Rescue – Saving lives one home at a time.
Let’s be honest. Right now, through no fault of their own for some its getting tough. We are potentially facing a severe recession. Some even say a depression worse that the late 20’s early 1930’s.
Many are asking what to do especially as regards their home. Interest rates are rising, inflation is getting worse and many are thinking (or needing) to sell their home. It’s often tempting to look to do a quick sale, even at a discount. But what if you need extra cash to settle some debts and have something left to move on with? Given many people typically live up to (or above) their means, selling at a big discount (below market value) might be the worst thing you could do.
In the event the seller goes bankrupt or into an IVA, (a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time) - the official receiver or insolvency practitioner has the right to look at their assets prior to them becoming insolvent. They have a right to challenge and overturn any transactions that disposed of assets which left the seller unable to satisfy any legal debts.
In lay terms, this means a discounted fast-cash sale could be overturned leaving the buyer/investor out of pocket and the seller in deep trouble.
It's an offence under the insolvency act to dispose of an asset which leaves you unable to satisfy your debts or to undertake any transactions to favour paying one creditor over another. Given mortgage lenders are aware of and vigilant over distressed sales, it makes sense to make yourself fully aware of what you can do to protect yourself and your assets. Whether you are buying or selling.
It also makes sense to explore all options available before making any decision as to what fits your situation. Whatever you do make sure you're properly informed before you proceed.
Hope this article was useful. Feel free to get in touch if you want to discuss how we can help. I am always here to help with respect, discretion and integrity.
Repossession Rescue – Saving lives one home at a time.
Posted: Thu 14 Dec 2023