On this section of our website we are posting some of the questions that people email us from all over the world. Hopefully you will find the answer to a query that you may have. If not, leave a comment below and we will do our best to answer you.
Do you have a property that is being repossessed while you are living abroad?
There are many people living all over the World that have moved abroad, but still have a property (or properties) in England, Wales or other parts of the UK. In many cases these properties are rented out to tenants and the rent is used to pay the mortgage on the property.
In most situations this works quite well for people, and if you are fortunate the rent will cover both the mortgage payment and also provide a small profit. However, in many cases that we have dealt with, people may struggle to maintain the mortgage payments, and if you are caught in a negative equity trap it can be very hard to sell the property.
In our experience problems can occur if the tenanted property needs repairs, remains empty for a short period of time or if the tenants just stop paying the rent that is due. Unless you are able to cover the mortgage payments while dealing with these issues, mortgage arrears will start to build and in many cases the mortgage company will start to consider repossession.
We have also seen many cases where the owner of the property has then spoken to the mortgage company to ask for some assistance but ended up having the mortgage company stating that they should not be renting. As a result of this conversation the lender then states that they will now increase the mortgage rate, which in turn creates an even higher monthly payment and more problems. So what sort of options do you have if you are living overseas and having a property repossessed?
Living or working overseas whilst your UK property is being repossessed
If you are living or working abroad with a house in the UK that is under repossession it can be a tricky situation to deal with. Ringing the UK from abroad can be expensive enough, and with different time zones, 0845 numbers and annoying telephone systems asking you to select one of twenty different options you can end up pulling your hair out!
Bankruptcy from Abroad offers a free, no-obligation consultation if you are experiencing these sorts of issues. We can also help by taking over and dealing with this situation on your behalf. We have helped many clients in Australia, New Zealand, Canada, America, Asia and in fact all over the world to deal with these types of issues.
Your overall situation can sometimes dictate which options you have open to you. For instance, if you have unsecured debts in England that you are also struggling to pay, and a property that is about to be repossessed, then declaring bankruptcy from abroad may be your best option. This may depend on your situation abroad and also which Country you live in; if you have lots of assets or disposable income then bankruptcy may not work well, but in many cases it could be a solution. As these cases are quite complex we recommend contacting us to discuss your circumstances.
Repossession debt whilst living overseas-will my mortgage company locate me abroad?
Many people ask us if they will be located abroad and chased for this type of debt. In our experience your creditors eventually do catch up with you or in most cases begin to harass friends and family back in the UK.
In most situations the shortfall after repossession is quite large. In many cases that we handle, we anticipate the amount of shortfall, but we are still amazed at how cheaply these properties are eventually sold for.
For this reason the debt is large; you could be looking at £50,000 or more and it is for this reason that debt collection companies will buy the debt and try to locate you. In our opinion it is always best to deal with these types of situations. Take some free advice now!