Help and Instructions

YELLOW APRICOT HELPING PEOPLE AVOID REPOSSESSION.

According to the Council of Mortgage Lenders, repossessions in 2008 are set to increase by a staggering 50% from 30000 to 45000.

Contact Yellow Apricot NOW to get FREE help and advice on avoiding Reposession so that you cash in the equity in your home rather than your mortgage lender

If your home is repossessed:

•  you will be evicted from your home;

•  you will ruin your credit rating months before you are repossessed;

•  you will find it difficult to get credit;

•  if you do manage to get credit, it will be at high rates with high broker fees and penalties attached to it;

•  you will end up paying solicitors fees of going to court plus repossession costs and sales fees over which you have no control, usually running into thousands of pounds more than if you had sold the property yourself;

•  the equity you get after paying for everything will be less than if you had sold the property yourself and

•  the lender will want a quick sale and with the property being labelled as a repossession, it may end up selling for below its market price in the rush over which you again have no control.

On the first signs of realising that you are in financial difficulties, you should consider selling your property through a Yellow Apricot Auction and simultaneously buying a cheaper or smaller property. This way, your existing property will sell quickly at the highest price we can achieve for it in the open market and you will be able to move into a cheaper property and have cash left over.

Example:

Mr & Mrs Bee own their own home with a mortgage. Mrs Bee has become pregnant and she will be leaving work on 7 months time to have a child. Her income will fall sharply as a result. Mr Bee has been given one months notice at his work and he feels that it may take him some months to get another job. Their property is worth £350000 and they owe £200000 on it. Their mortgage is currently up to date and they are repaying £950 per month. They foresee themselves struggling as they only have £3000 in savings. What should they do?

They have looked at the Yellow Apricot website and notice that there are still 2 days left before entries for the current auction close. They have enquired about selling their property and the efficient staff at Yellow Apricot have advised them that the property will attract a lot of interest at a guide price of £250000 and that the reserve price should be set at £300000. They decide to put the property into the Yellow Apricot Auction.

They go through the Yellow Apricot Catalogue and notice another property of the same size but on the other end of town which is a slightly cheaper area with a guide price of £150000. They speak to their existing lender who informs them that they can carry their £200000 mortgage to a new property. They decide to sell their property and to try to buy the other property after viewing it and having a survey done on it. On Auction day, their property sells for £325000 and they buy the new property for £288000.

The figures stack up as follows:

Before deciding to sell their property, Mr & Mrs Bee had a grim outlook, with the possibility of having to borrow money they could not afford to pay back, a repossession knocking on their door and lots of suffering to come. With them selling their property and buying another one simultaneously, they did not lose their home, their credit rating remained intact, they ended up moving to another property instead and they ended up after paying for everything with over £22000 in their bank account!

Now with £25000 in their bank account, Mrs Bee can have a baby without financial distress and Mr Bee can take his time looking for another job knowing that there is no financial pressure on him.

From this example, you can see that borrowing money you cannot afford to repay or borrowing it in the hope that things will improve is not the way to do things. Your home is the most important and valuable asset you have. Make sure you look after it and take advice from proper professionals. We at Yellow Apricot have over 30 years experience in advising clients on areas such as the above and we would be happy to deal with your queries.

Don't borrow money when things are on the slide. Sell your property instead and buy a cheaper one until you can afford to move up the property ladder again. Remember, ladders have rungs on them and you can go up and down on them. There is nothing embarrassing about going down a rung or two and then going up 3 rungs. It is when you think that the only way to climb a ladder is upwards continuously that things go wrong!

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