Defaulting mortgage payers will now have a reason to smile amidst all the darkness that may be engulfing them because the government through the FSA is doing all that is possible to level the playing field even as they look for a solution to their predicaments.
Repossession has now become a real threat to many people affected by the current economic crisis who are finding it difficult to service their mortgages or secured loans and in the process they are living under a real threat of losing the roof over their heads.
With the new regulations in place even court processes will make repossession the very last option when everything else has failed to come to play.
For this very reason companies doing the sell and rent back business which has become the last stop for people in dire straits are required by law to be registered and regulated by the Financial Services Authority.
There is very clear guidance regarding the steps that need to have been followed before a court decides to have someone's home repossessed.
Even the courts will now have to go further and give necessary advice regarding available options to the customer before they can finally allow the lender to take this last step.
To add on that, lenders themselves will also have to show that they have done everything in their ability to assist the home owner get an alternative before they are allowed to sell the home on behalf of the borrower.
When the case gets before a judge, the judge will need to hear what steps your borrower has taken to try and assist you save your greatest investment, the home.
And since the last resort will most likely be the sell and rent back scheme, the government has also gone further to bring regulation in this field so that it can also play its role in a fair and transparent manner.
People facing repossession for defaulting in their payment may simply be victims of circumstances beyond their control in most of the cases, thanks to the current credit crunch that is taking its toll worldwide.
So repossession should come as the last and not first option.
Even the lenders themselves know that when they take up the house to sell it may take a long time to dispose of it and in many cases an auction may not bring sufficient money to cover the entire debt of their erstwhile good customer.
They will also look out for the easiest option where it becomes a win win situation for all the parties that are involved.
Further, the involvement of the FSA will ensure no underhand deals are taken by any unscrupulous players in the industry.
Consumers therefore need to educate themselves on the whole business before they take the steps they need to.
All these issues simply go out to demonstrate that the government is keen to cushion financially distressed citizens so that even in their vulnerable positions they will still have a roof over their heads as they wait to re-invent themselves financially.
The lender will be shown the set of steps they must take before they issue a repossession order and the customer will also be shown their own options, together with their rights and obligations in the sell and rent back program.
The property investor will also need to abide by a set of rules and regulation as a sign that they will follow the rules of fair trading.
Customers therefore have an avenue through which they could actually re-invent themselves and still have the dignity to have a roof over their heads together with their families.
Repossession has now become a real threat to many people affected by the current economic crisis who are finding it difficult to service their mortgages or secured loans and in the process they are living under a real threat of losing the roof over their heads.
With the new regulations in place even court processes will make repossession the very last option when everything else has failed to come to play.
For this very reason companies doing the sell and rent back business which has become the last stop for people in dire straits are required by law to be registered and regulated by the Financial Services Authority.
There is very clear guidance regarding the steps that need to have been followed before a court decides to have someone's home repossessed.
Even the courts will now have to go further and give necessary advice regarding available options to the customer before they can finally allow the lender to take this last step.
To add on that, lenders themselves will also have to show that they have done everything in their ability to assist the home owner get an alternative before they are allowed to sell the home on behalf of the borrower.
When the case gets before a judge, the judge will need to hear what steps your borrower has taken to try and assist you save your greatest investment, the home.
And since the last resort will most likely be the sell and rent back scheme, the government has also gone further to bring regulation in this field so that it can also play its role in a fair and transparent manner.
People facing repossession for defaulting in their payment may simply be victims of circumstances beyond their control in most of the cases, thanks to the current credit crunch that is taking its toll worldwide.
So repossession should come as the last and not first option.
Even the lenders themselves know that when they take up the house to sell it may take a long time to dispose of it and in many cases an auction may not bring sufficient money to cover the entire debt of their erstwhile good customer.
They will also look out for the easiest option where it becomes a win win situation for all the parties that are involved.
Further, the involvement of the FSA will ensure no underhand deals are taken by any unscrupulous players in the industry.
Consumers therefore need to educate themselves on the whole business before they take the steps they need to.
All these issues simply go out to demonstrate that the government is keen to cushion financially distressed citizens so that even in their vulnerable positions they will still have a roof over their heads as they wait to re-invent themselves financially.
The lender will be shown the set of steps they must take before they issue a repossession order and the customer will also be shown their own options, together with their rights and obligations in the sell and rent back program.
The property investor will also need to abide by a set of rules and regulation as a sign that they will follow the rules of fair trading.
Customers therefore have an avenue through which they could actually re-invent themselves and still have the dignity to have a roof over their heads together with their families.
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