There are good times and terrible times in each property market for everyone engaged. Homeowners are starting to feel the squeeze as a result of high inflation and skyrocketing interest rates, and many are struggling to make their monthly bond repayments.
In addition to the fact that many homeowners are struggling to make their monthly bond repayments, many are also being forced to sell because they can no longer afford the payments. The problem with trying to sell a house in this market is that no one is buying right now. Due to affordability difficulties, as well as the fact that the press is continuously promoting the message that now is the time to rent until interest rates fall down again, first-time buyers are having difficulty getting bonds. This puts present homeowners in a difficult situation, as they are left with a home they cannot afford and are unable to sell, even if they are forced to.
Regrettably, this results in the unfavourable position of repossession. To cover their losses, banks have no choice but to intervene and repossess the property. Since 2006, the rate of repossessions in the present market has nearly doubled. This is a clear symptom of an affordability dilemma brought on by rising interest rates and inflation. In situations like this, it’s not just bond repayments that are causing an increase in home repossessions; it’s also the reality that the average consumer is under a lot more financial strain as a result of rising food and gasoline prices, among other things.
One of the main causes of the problem is that first-time buyers entered the market 3 to 4 years ago when mortgage rates were extremely low and the economy was booming. People were spending because banks were pouring money at them. These first-time buyers neglected to account for potential interest rate increases, and as a result, they are now struggling to meet their monthly living expenditures. If only there was more public awareness in the media aimed at first-time buyers, alerting them that interest rates do go up and will continue to go up in the future.
Instead, the media promotes the idea that now is the best time to buy to first-time buyers. The issue is that the media fails to warn these purchasers about the potentially difficult times ahead. This would at the very least allow purchasers to plan for times like this, and purchasers would be a little more wary about throwing money around just because it appears to be a good deal at the time. We are seeing more house owners facing foreclosure than we have in the last 20 years as a result of a lack of understanding.
Fortunately, the narrative is not all doom and gloom; there are answers to the repossession dilemma out there. There are repossession businesses out there that are usually made up of a group of real estate investors who can buy houses for cash. These investors can buy the seller’s house immediately and for cash. In exchange for a speedy and painless sale, the investor will provide a discounted price on the property. This is a win-win situation for both sides, as the investor receives a good deal on the property and the seller is relieved of their financial obligations and can move on with their lives. The seller was also able to retain their credit score intact, which is a huge plus. If the seller is blacklisted, they will be unable to obtain credit for the following 5 to 10 years, and even fundamental tasks such as renting a home will be difficult because landlords normally avoid blacklisted candidates.
Another advantage of using one of these cash-for-houses repossession firms is that they typically enable the seller to stay in the property after the sale and rent it back from the investor. This is especially important because most sellers do not want to relocate and were forced to sell due to financial restrictions. The services are not just inclusive of for sale by owner houses.
It’s important to remember that if a homeowner wants to use the services of one of these repossession organisations, they must contact them as soon as possible before it’s too late. Easy Home Sales offers this service at no cost, so give them a call today to see if they can assist you.
