Being at the forefront of a house repossession and having to witness your home potentially being taken away from you can be a very daunting and traumatizing experience. The whole repossession process often takes people by surprise and in many cases these same people get lost in the midst of it all and become unsure of where to start in order to get all the pieces back together into something that makes sense.
In order to help home owners through this puzzle, we’ve put together the 7 step house repossession process. This should give the average person who’s stuck in a repossession an idea of where they are currently and also prepare them for what’s to come.
Home repossessions can take place for a number of reasons. It’s not uncommon to find that a home is being repossessed because the owners are going through a divorce and nobody wants to foot the mortgage bill. Regardless of the reasons, if you find yourself falling behind in mortgage payments and adding to your list of arrears, it’s important to take action right away. The two most important things to remember at this point are:
- To remain calm.
- There are things you can take to help avoid or put a stop to a house repossession in its entirety.
According to Statista hundreds of homes in UK are repossessed on a monthly basis – An alarmingly high figure to say the least.
From the chart and statistics provided above we can see that property repossessions are quite a regular occurrence here in England which makes it all the more important for those individuals who are going through a repo to educate themselves on how they can put a stop it.
During a repossession homeowners have a 101 questions going though their heads which include things like, can I stop a house repossession? What happens to my debt after my home is repossessed and what can I do if my home is being repossessed? All the answers to these questions can be found easily if a person puts in the time and effort to learn about it. Additionally, you can find all the answers to these questions and more throughout this article.
Now that we know what the repossession process involves, let’s look at some things you as a home owner can do to save their home from repossession.
Let’s take a look at these 8 ways that can potentially put a stop to a repossession in a little more detail.
1) Get Professional Advice
If you find yourself in this position, it is essential to talk to an expert or professional in this field. They can give you the correct advice on how to proceed & outline all your options.
It is important to do this because if you start taking action without fully understanding your situation you could potentially make your situation worse than it already is.
2) Talk to your Lender as Soon as Possible & Try to Negotiate
If you find yourself falling behind on payments, the first step you should take is to contact your mortgage lender and get advice from them. Do not put it off. The earlier you do it, the better your chances of sorting things out and keeping your home.
There are a range of options your lender can offer you some of which include:
- Giving you a month off from your repayments.
- Letting you pay off your arrears in installments.
- Extending your mortgage term.
Talk to them and see what they can do.
3) Build up a Buffer
Most mortgages are at the very least a little flexible when it comes to repayments which allows you to pay off extra in advance. If you find yourself in this position & can pay off extra at any point you should take it up.
You cannot predict the future & if things do get tough for you later and financial difficulties start to mount, at the very least you will be able to pay a reduced mortgage or even take a payment holiday.
4) Keep in Touch – Don’t Miss Calls or Appointments
One of the worst things you can do is to keep your head down and hope everything will just sort out itself – it won’t.
5) Claim All Benefits Available
Be sure to double check which benefits you are entitled too & claim them all. Do not miss out on any benefits as they could be the difference in ensuring you keep your home. Remember that it’s not only unemployed people who can claim them.
Mortgage payment protection insurance could also help you meet repayments for a year or two and allow you to get back on your feet.
6) Do Not Hand the Keys Back Right Away
Do not just hand your keys over & assume everything will be fine after that. Get some professional advice before proceeding as you will still be responsible for paying your mortgage.
If you do, your debt will increase and your name will appear on the mortgage repossessions register making it extremely difficult to get a mortgage in future.
Instead, at this point you should consider your house selling options. In general, you can get more money for your house by selling it as an ‘occupied home’ as oppose to the lender selling it as unoccupied at the auction house.
If there is still money owed even after the sale of the property, lenders can chase you up to 12 years for the rest of the cash. However, an informal agreement between members of the Council of Mortgage Lenders means they will not normally pursue you after 6 years. This being said, there have been cases in the past that even after 6 years lenders are still chasing people for their money so do keep this in mind.
7) Turn Up for Court Hearings
If you find yourself in this position and you have been ordered to attend a repossession hearing, be sure to attend.
Even at this stage of the process there is still a chance for you to keep your home. Present your case to the judge as best you can.
8) Be Vary of Pay Day Loans & Sell to Let Schemes
Pay day loans may seem attractive but are very risky. Their sky high interest rates can make a bad situation a lot worse & the longer you do not pay them back, the more your debt increases. Do not take this option unless you are 100% positive you can pay back the cash on time.
Sell to let is when you sell your house and then rent it back. By opting for one of these schemes you will no longer own your home & there is still a chance that you can be evicted if you fall behind with any rental payments.
A Final Word
Repossessions are no joke and going through one requires immense mental toughness. To make it easier on you and your family members, be sure to learn everything you can to educate yourself on this matter so you’re prepared for every outcome.
We hope this article was of benefit for anyone who may going through a repossession – we wish you the best of luck.
How can Housebuyers4u Help you Through a Repossession?
We are at Housebuyers4u are a genuine cash buying company and have already helped hundreds of home owners avoid repossessions entirely by purchasing their homes out right for a cash lump sum.
We guarantee to buy any house in any condition within 7-14 days irrespective of your financial situation, so if you’re struggling with arrears and face repossession, don’t delay – get in touch with us immediately.