Owning your own home is a dream for most people. However, that can quickly turn into a nightmare when you’re no longer able to keep up with the mortgage payments. Read below for more information about how to avoid house repossession.
How does Repossession work?
The term ‘repossession’ strikes fear in even the bravest of people. Repossession laws are in place to protect the mortgage lender when you are unable to cover the monthly payments. Lenders are usually willing to give you a few chances to clear your arrears, however, if you constantly miss payments then they will start the repossession process.
This can lead to the mortgage lender taking your house from you to sell it and clear the outstanding debt.
How to Avoid Repossession?
Firstly, the best way to avoid repossession is by paying your mortgage payments every month. If however, you’re unable to pay, here are your option:
- You could rent the property out to tenants. This will give you a stream of income that allows you to pay off any arrears that you have on your house.
- Mortgage Repayment Insurance. The insurance provider will cover your mortgage repayments if you are unable to pay due to illness, injury and even the loss of your job.
- Speak to the Citizens Advice Bureau. They will be able to give you advice and tell you whether you qualify for aid from the government.
- Discuss your situation with your mortgage lender as this can prevent the case from being taken to court. They may be able to work with you by implementing a repayment plan.
- Look at where you’re spending unnecessarily. If you can cut your spending habits you may be able to put the extra cash towards your mortgage.
- If your case is taken to court then you do still have options but you will need legal advice. You could still reach an agreement with the lender and stop the process if you have good grounds for defence.
What Happens next?
If the worst happens and you are facing repossession then the following will happen:
- You get a date to leave the property, and if you don’t adhere to this and leave by this date, the courts will send a bailiff to remove you.
- The mortgage lender will take ownership of your home and list it for sale.
- The sale price of the property will cover your outstanding mortgage, any repair or maintenance fees, the legal costs the mortgage lenders incurred. You will not walk away with anything.
House repossession should be avoided at all costs as it leaves you needing to find alternative accommodation instantly and it can even leave a black mark on your credit file for up to 7 years.
For further advice on how to avoid house repossession then call us now on 01603 851837 or get your quick cash offer today!