House repossession process
If you fall behind on your mortgage payments your lender will inform you of your mortgage arrears. This is how much money you currently owe them. Remaining calm and communicating with your mortgage provider will often halt the repossession process there and then, with many lenders giving time frames and alternative payment plans to help you take control of your situation.
If you fail to get in contact with your lender they will file for a possession order; this means that the courts have decided your mortgage provider can repossess your home. You will be required to attend a court hearing where you can voice your case to a judge. Often, solutions to stop repossession can take place at this point.
If the court decided that repossession is the best option you will be provided a date you must leave your property. If you fail to do so bailiffs will be sent to your home to remove you. Your mortgage lender will then sell your home and return any remaining funds to you.
However, repossession doesn’t need to be the answer.
How to avoid repossession of your home
Most people are aware if they are not keeping up with their mortgage payments and it doesn’t take a notification from your lender for the panic to set in. Whether you have received a letter or not, get in touch with your lender as soon as possible; communication is key.
House repossession advice
Mortgage lenders aren’t out to get you. You are a customer and they will often be keen to find a solution for you if you are upfront and honest. They are human too and will be sympathetic to your case. Solutions could include any of the following:
- Changing to an interest-only mortgage
- Adding your arrears to the mortgage itself
- Taking a ‘mortgage holiday’
- Selling an endowment policy
However, if you would prefer to get out of arrears with your provider you have the following options: