The sub prime home loan collapse in America and subsequent carnage in the financial markets could dampen the economy for years – and as lending criteria is tightened, more of us may be unable to stop house repossession.

More American homeowners are falling victim to waves of house repossessions that are sweeping across the US. Sub-prime loans are collapsing and going bad and some economists predict the scale of the losses could reach half a trillion dollars. Wall Street, the BBC has said, is facing ‘carnage’ as the economy faces an uncertain future. There are concerns that the inability to stop house repossessions in America could end up closer to home as the UK economy absorbs the American shockwaves.

For many the American dream then has turned into a nightmare as families across the nation are unable to stop house repossession. The downturn in the American housing market is likely to impact on general economic growth and some even fear could trigger a recession. The huge losses the housing market caused the financial sector has already resulted in the heads of the biggest bank and biggest investment firm (Citigroup and Merrill Lynch) depart. The huge number of homeowners who defaulted on their mortgages and were unable to stop house repossession means the banks are at risk. Not only have profits been wiped out but their capital base could be affected, resulting in staff lay-offs, branch closures and other assets sold off in an attempt to stay afloat. This will impact on the economy as a whole in America as well as the global stock market.

The crisis began in the sub prime market as US homeowners found they were unable to stop house repossessions but the ripple throughout the global economy is being severely felt. More lenders have had to tighten their lending criteria in America and the UK impacting on many people’s lifestyles that have grown dependant or reliant on easy credit and loans. Although the amount of money lost as a result of Americans being unable to stop house repossession is difficult to calculate, one economist told the BBC that the credit crunch was going to get worse and the fall out will be “severe”.

njoy.co.uk is a dedicated website that can help get you the best price for your property from committed cash buyers in your area. We aim to have you a cash offer in principal for your house within 24hrs of you registering your house on njoy.co.uk.

Many of our registered investors can offer you a 'sell and rent back' option, where they will buy your house for an agreed price, and allow you to stay in your property as a tenant. This may enable you to pay off all your debts in one easy stroke by releasing the equity tied up in your home. If you wish to discuss the process then we would be delighted to talk to you at your convenience, our customer service team can always be contacted either by telephone 0845 337 0038 or alternatively you can email your query to: info@njoy.co.uk