According to the Finance and Leasing Association (FLA), responsible lending has stabilized repossession levels. The FLA represents 80% of second charge lenders in the UK. Of the 10,000 repossessions in the first quarter of 2009 only 373 were due to members of the FLA. This reflects the same levels of the first quarter 2008.



Stephen Sklaroff, director-general of the FLA, said: "Our figures show a continued low level of repossessions.

"Second charge lenders recognise the pressures that many people face in the midst of recession.".

We believe this recent announcement from the FLA is misleading and doesn't represent the whole picture. The Council of Mortgage Lenders (CML) stated that they expect repossessions to hit 75,000 this year, which is double the amount of repossessions of last year. The CML show that the number of repossessions in the first quarter of 2009 reached 12,800 ? up from 10,400 in the fourth quarter of 2008 and an increase of over 50% on the first quarter of 2008.

The government's pre-action protocol is taking effect which extends the period that lenders can take action to repossess a home from 3 to 6 months. This is a welcome compromise, but is this just delaying the inevitable? Many homeowners may be able to bring themselves out of arrears with this extra three months grace but it is our opinion the majority of homeowners will not be able to sell your property fast to avoid all the negative implications of repossession.

Many borrowers are asset rich but cash poor and due to a set of unfortunate circumstances such as loss of employment cannot meet their mortgage payments. They may see the only way is to sell their house fast but in a depressed market many houses are simply not selling. Borrowers must avoid repossession at all costs, if the house is repossessed it may be sold at auction. This means the house will sell vastly below market value and you will still be responsible for any shortfall between what you owe and what the property is sold for and in addition the mortgage payments until the house is sold. Also the affect on your credit rating could bar you from entering the property market for years to come.

If you want to sell your property quickly here at Rapid Home Solutions we can help. We cash buy houses enabling you to achieve that quick house sale you have been looking for. We can stop repossession and allow you to move on from your house with cash in the bank.