How can I stop my house from being repossessed? Asking this question is never a nice experience and can cause no end of stress. In this article we hope to help reduce some of that stress and help you see a way out.
Illness, redundancy and divorce can all threaten your home
The threat of repossession is caused most frequently by loss of income or sickness or divorce – all unhappy situations, some of which you may not have any control over. Some people take out insurance to protect against redundancy and lose of earnings but this is expensive and may only buy a 12 month holiday. If you have young children living with you, you may be able to apply for help through a shared ownership scheme whereby a landlord may offer to buy part of your home. You could also ask the lender if you can extend the mortgage or ask for a ‘holiday’ from repayments. Ask to speak to a debt counselling service so that they can help you to prioritise a budget plan, so you can see what debts you’ve got, which take priority and how to manage them.
Keep talking to your lender and make token payments, how ever small
The threat of repossession occurs because you are failing to make payments on a mortgage which is a loan you have taken out which is secured upon the house. The good news is that most mortgage lenders will not actively try to seek repossession until you are at least 3 months in arrears and, even then, they will also try to get you to talk to a debt counselling charity. Some lenders have extended the number of months for being in arrears to 6 months, to help mortgagees even further.
The Court will take several factors into consideration when hearing your case
If the case does come to Court and you can show you have tried to resolve the situation then the Court may stay the repossession order if they can see you are trying to resolve the matter, particularly if you have young children or they may seek a suspended repossession order which will remain in place until you have paid off the arrears and, apparently, remains in place even after that.
If the Order to repossess is granted, see if you can ask that you remain in control of the sale, in this way at least you may able to realise the asking price or near to it, rather than a ‘fire sale’ or the house being sold at a repossession auction otherwise known as a ‘Below Market Value’ sale. It may seem unfair, but the bank or building society simply want to get back what they can and will look for a quick sale rather than a long, protracted sale process, even though this may mean you end up owing the building society a lot more money as you will be chased for the shortfall ie the difference between the price realised and the outstanding mortgage.
We hope our article “How can I stop my house from being repossessed?” helped you. Remember there’s a range of resources out there to help and you should always consult many avenues before making drastic decisions.
If your interested in how we can help you sell your property fast and gain a speedy cash offer contact us for more information