What is Equity

Negative equity occurs when the value of the house is less than the outstanding mortgage, and it is estimated that nearly 2 million home owners in Britain are now in negative equity. As the financial crisis deepens and the credit crunch begins to bite, there is evidence that banks are aggressively recovering loans that are falling behind with their payments.

Of course, negative equity can only be a temporary condition, a real estate market so depressed. When prices recover, so will thousands of home equity položaj.Pravi problem is the recent wave of mortgage deals or with short notice, after the introductory rate on continuing high rates. Gone are the days 25 years mortgage at reasonable stope.Banaka actively encourage remortgaging every few years to boost their fees.

Another serious problem in these times is job insecurity. If a homeowner loses his job, and also in the negative equity they really have nowhere to turn. They can not sell without taking a big loss that they have no hope of repayment. Houses are not sold outside the capital anyway. That poor homeowner is sitting squeezed into negative equity house until the bank finally repossesses.

Land acquisition of a solution to this sorry priču.Može effective 'baby sitting' and make the mortgage payments, and the owner goes dalje.Prodavatelj gives them the opportunity to buy a house in the future at a price agreed today. Typically, the price will be agreed on the current market price, but could be even more than that. It depends on how long the future purchase will be made. While the purchase option is in effect, they will look after the house and often improve it. They will be legally obliged to maintain and ensure that the seller has the peace of mind that he can move on and forget the responsibilities of home.

These negative equity solutions to stop the bank from the return home this way protects the seller of a credit score and avoid the stigma associated with the return of negative equity imovine.Ključnih advantages of the solution are:

achieve the best price for your house Zero cost. There is no cost to the seller. All valuation and legal fees are paid No agent fees Soon transakcije.Transakcije can pass in as few as four weeks The house is fully maintained and insured to prevent or avoid repossession peace of mind knowing the bank off your back

Britain to catch up with negative equity solutions that have been around for 30 or more years in the U.S. and Australia. This is a special time that our banks now have to return div rescue and are now charging an astronomical fee arrangement. These techniques can completely bypass the banks and use the existing mortgage. This is akin to trading in bank debt and has just arrived in the area of ​​ordinary citizens.