Few people appreciate that even when a house is repossessed it still goes through the necessary stages of conveyancing, only the new owner is now the bank or a consolidation company.
With that in mind there is still much activity going on in the conveyancing scene despite the steadily falling numbers in the house sales industry.
When it was announced earlier this week that RBS would not start repossession procedures on a property until six months after the individual had defaulted on their mortgage, some applauded the move with fervour.
Others in the industry have not been quite so happy with the move as it appears to be somewhat cruel, the chances of a person coming up with the necessary funds to catch up on 6 month's worth or arrears is slim to none.
With that in mind postponing the move to repossess a property simply means the individual has a few more months with which to accrue extra debt.
What the professionals are saying The law firm Salans Direct specialises in secured loan lending, asset recovery, remortgaging and conveyancing and with their years of expertise have been commenting on the conveyancing art and how it is likely to be influenced by the various steps taken by the lending 'powers that be'.
They have warned that unless conscious steps are taken to help borrowers manage their debt while the amount is relatively low in comparison to the individual's earning capability then postponing repossession may simply worsen an already dire situation.
By extending the repossession period, the bank is not necessarily giving the owners extra opportunity to salvage their situation and remain in their home, rather the owners are merely getting themselves in a more intricately woven web of debt and unpaid bills.
Salans' went on to highlight that simply because the repossession is postponed for 6 month doesn't mean that the cumulative bill pauses at 6.
Rather after the6 month pause period has elapsed a further 3 months will pass before the owners actually evacuate.
A recipe for debt and disarray With all these ingredients in the pot, we have a recipe for steeper debts and unbearable heartache.
Caroline Havers one of the partners at Salans Bromley commented on the whole issue and said she thought that the reason everyone was applauding the "motivation to stave of repossession but there needs to be a real understanding of what will genuinely address the situation".
She went on to say that "it should be recognised that a six month moratorium will only be of use if lenders can come up with some innovative way of tackling the arrears problem".
She stated that she appreciated it was "challenging enough for lenders to get an account three months in arrears back on track", however she did add that "the challenge" would merely double "should this time period be doubled".
In a conclusive statement she said that "once again the devil" will be "in the detail" and as a representative for the conveyancing sector she is eager "to see the plans that sit behind this announcement otherwise there is a risk that were not only delaying the inevitable but could be making the borrower's situation even more desperate".
With that in mind there is still much activity going on in the conveyancing scene despite the steadily falling numbers in the house sales industry.
When it was announced earlier this week that RBS would not start repossession procedures on a property until six months after the individual had defaulted on their mortgage, some applauded the move with fervour.
Others in the industry have not been quite so happy with the move as it appears to be somewhat cruel, the chances of a person coming up with the necessary funds to catch up on 6 month's worth or arrears is slim to none.
With that in mind postponing the move to repossess a property simply means the individual has a few more months with which to accrue extra debt.
What the professionals are saying The law firm Salans Direct specialises in secured loan lending, asset recovery, remortgaging and conveyancing and with their years of expertise have been commenting on the conveyancing art and how it is likely to be influenced by the various steps taken by the lending 'powers that be'.
They have warned that unless conscious steps are taken to help borrowers manage their debt while the amount is relatively low in comparison to the individual's earning capability then postponing repossession may simply worsen an already dire situation.
By extending the repossession period, the bank is not necessarily giving the owners extra opportunity to salvage their situation and remain in their home, rather the owners are merely getting themselves in a more intricately woven web of debt and unpaid bills.
Salans' went on to highlight that simply because the repossession is postponed for 6 month doesn't mean that the cumulative bill pauses at 6.
Rather after the6 month pause period has elapsed a further 3 months will pass before the owners actually evacuate.
A recipe for debt and disarray With all these ingredients in the pot, we have a recipe for steeper debts and unbearable heartache.
Caroline Havers one of the partners at Salans Bromley commented on the whole issue and said she thought that the reason everyone was applauding the "motivation to stave of repossession but there needs to be a real understanding of what will genuinely address the situation".
She went on to say that "it should be recognised that a six month moratorium will only be of use if lenders can come up with some innovative way of tackling the arrears problem".
She stated that she appreciated it was "challenging enough for lenders to get an account three months in arrears back on track", however she did add that "the challenge" would merely double "should this time period be doubled".
In a conclusive statement she said that "once again the devil" will be "in the detail" and as a representative for the conveyancing sector she is eager "to see the plans that sit behind this announcement otherwise there is a risk that were not only delaying the inevitable but could be making the borrower's situation even more desperate".
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