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Property Repossession - The Shortfall
Repossession Statistics â?? Shortfall
Shortfall â?? The difference in what you own on your mortgage and the final sale price of your home after it has been repossessed and all associated sale fees have been paid.
Contrary to popular belief, â??shortfallâ?? isnâ??t just something that affected the 80â??s and the negative equity era.
Most people would think that with the every increasing property prices you would be pretty hard pushed to sell your house in 2008 for less than you paid for it - Wrong.
If your house is repossessed and sold on by the lender around 1 in 5 houses are sold for less than the amount left owing on the mortgage â?? 21% (source: Council of Mortgage Lenders).
The two main reasons for this are:
1. If a mortgage lender auctions your property it will typically be sold below its market value, up to 40% less in some cases.
2. All the legal fees and selling fees associated with repossessing you home and then selling it are deducted from the sale price â?? this can be in the region of 5%
Repossession-Stoppers.com urges anyone threatened with repossession to take action now to prevent their house being repossessed. If you are unable to come to an agreement with your lender with regards to your mortgage repayments consider selling your house fast to get a more realistic sale price and avoid blacklisting.
