I Lost a Fortune in Property: Don’t Do This!

Ending our fist time buyer virginity seemed quite an achievement in the late eighties when my girlfriend and I decided to buy our first home. We got an endowment as buy to let mortgages weren’t available then but little did we know that disaster and the end of our relationship would follow so soon after what seemed like the beginning of our adult life together.

Oh How The Mighty Fall

No one could have known the crash that was just around the corner.The manager of the bank requested a meeting prior to lending me the money I needed. He gently suggested insurance against possible repossession.

I Saw No Real Alternative

What other option did I have. It was very clear, no insurance equals no mortgage.It was that simple. I wanted the house so I signed on the dotted line.But at least I had the protection of the insurance so how bad could things get?If you are curious about how I survived this mortgage nightmare go to mortgage insurance and read how much the insurance protected me.

Make sure you read the insurance terms and check what it covers.Don’t just take the sales persons word for it. Get it in writing and seek advice if you are unsure where you stand.It’s not that I am totally against insurance but many policies seem to have so many get out tactics built in to avoid paying out.If you want more advice why not check out the Hayes Mortgage Solutions website.

It didn’t take long before a manageable mortgage of 7.5% jumped massively to 16%It was so unexpected and really difficult to work through. I had to come up with a plan, a strategy but what?Then there was the unemployment possibility as well.

Simple! Stay Calm. Don’t panic. There’s always the back-up of the insurance and if I lose the house its just a house right, I can get another one when the market turns again. What’s the point in worrying about something I can’t control?

Seems Like a Tall Story

So if you reach court stage and the mortgage company are asking for possession what do you do?Now I could have tried positive thinking to get me out of this mess but there’s positive thinking and there’s the debt that mounting while you practice thinking positive thoughts. All the time with one eye on the increasing balance. The negative balance. The one I would have to pay back. And who knows how long this will last. Could I actually end up bankrupt? At this point I’m still only twenty one.

Mortgage Hell

Needless to say many sleepless nights followed. And what sleep I did get was far from enjoyable. It almost seemed easier to stay up watching late night TV. Anything to keep from allowing my mind to visit my mortgage hell.

Quick Get Out The Insurance Policy – We need IT!

So did the insurance save me? Did it hell. The insurance it turns out was to protect the bank not me. It covered the banks cost of repossession my home! And that wasn’t the end of it either. Having repossessed my home the bank proceeded to sell it at auction far below market value. They then pursued me for the shortfall, some sixteen thousand pounds. So I paid for the insurance and the bank got protection. You work it out.

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