Figures released by the Council Of Mortgage Lenders show that 23,000 people who took out 100% mortgages in the last twelve months could find themselves with negative equity in their property.
This in itself is not a new phenomenon and was most recently seen in the property collapse during the nineties. Thousands were in the same boat then, as house prices fell by 20% or more. Many at that time, unable to keep up mortgage repayments allowed their homes to be repossessed by the banks and building societies, some believing that the problem was solved for them in taking this action.
However as we are all very much more aware these days of the small print on the mortgage papers, Failure to keep up the payments on your home can lead to repossession, but you will still be liable for any shortfall and expenses that may occur from the bank re-selling that property.
0 comments so far
There are no comments for this post yet. Why not be the first by filling out the form below.