March 4th, 2009 | Posted in Mortgage
In the current world of financial turmoil, many people are worried about losing their homes due to mortgage arrears. Some people take out mortgage protection policies, but for those that cannot afford such cover, times are increasingly scary. One USA based bank is however trying to help those in need the most.
Citigroup Inc. is seemingly taking proactive actions to help the poorer members of the US, by allowing some recently unemployed mortgage payers to have a temporary reduction on their mortgage repayments.
Citibank is set to lower repayments for 3months to new av. repayment of five hundred dollars a month for some mortgage borrowers, providing they lost their jobs and are a minimum of 60 days delinquent. Continue reading »
January 18th, 2009 | Posted in Mortgage
The credit crunch and recession is causing many people to question their job security, which has a knock on effect with regards the rest of their lives. For example, for most people one of the biggest fears about losing their job is failing to keep up with mortgage repayments, amidst the fear of repossession of their home.
How Long Until Repossession
If you are unable to make repayments, the vast majority of mortgage lenders will usually offer up to 3 months ‘grace period’ before they begin court actions to start the repossession process.
The UK government is said to be pressuring mortgage lenders to seek out alternative options in the current climate, in an attempt help heal, or at least stop the bleeding of, the UK economy.
For those finding themselves out of work and unable to make the repayments, there are state benefits available, but unfortunately these will not usually be able to be applied for until 9 months of unemployment - considering the 3 month lenders often wait before instigating court proceedings, this can leave a serious shortfall, and mean a repossession seemingly inevitable.
Any Help to Avoid Repossessions?
There is a specific insurance policy that is offered by many authorised companies, that serves, in effect, to protect against inability to meet mortgage repayments due to unemployment or illness (policies do vary).
Such policies tend to be labelled ‘ Mortgage Protection Cover ‘. Most mortgage protection cover policies will only pay out for up to 12 months, however they are available for up to 24 months, but at an increased premium.
Some Mortgage Protection Cover policies may also cover general household bills, such as bills from utility and energy companies; however again, these tend to be at a much higher premium. Continue reading »
