Financial options in home repossession

It is a sad fact that every year around 100,000 families find themselves unable to keep up with the mortgage payments, or secured loan payments and find themselves facing repossession of their home. There are many causes, such as losing one’s employment, sickness, or possibly a relationship or marriage has broken down. A major problem is that many people have equity tied up in the home, which could be lost or greatly reduced if the house is repossessed. When the bank or mortgage company repossesses your house, they are doing so with a view to reselling it, to regain their investment. While legally they are supposed to get the best price for it, they will often offer it at auction for a quick sale, thus reducing the amount left over after the debt is paid.

How a Repossession Works

Your mortgage company is not going to repossess if you miss a single payment, or are even late a few times. They look for a trend that shows a general inability to keep up. They will get in touch with you to check your financial position and may offer you a new payment schedule to help you get back on track. If you continue to default, you will normally be sent a letter demanding you pay the arrears within a given time, or you will be threatened with repossession. The County Court will listen to evidence from your lender, who needs to prove you are unable to pay the arrears. If they succeed, you will be given a repossession order, giving you 28 days to vacate the premises.

Options to Prevent Repossession

There are some options open to you if you want to know how to stop repossession of your home, which will depend on your circumstances. If your financial situation is of a temporary nature, your best move is probably to discuss things with your lender, with a view to renegotiating the terms and period of the loan, effectively giving you some breathing space. If however, you find yourself with absolutely no options to repay the money, for example, your relationship has ended and you simply can’t make the payments alone, selling the house first will probably be your best bet.

Selling a House Quickly

Selling your property prior to repossession is definitely worth consideration. A quick sale could pay off all of your secured debts and any court costs, leaving you with any balance left over, and can allow you to carry on, debt free. One significant hurdle in selling any property of course, is the length of time it takes to actually complete a sale. Even if you put your house on the market and you get an offer straight away, it can be many weeks before the sale is complete and you run the risk that at any time, your prospective buyer may back out, or be unable to find the mortgage themselves. An option in the marketplace has begun to cover this, by offering a guaranteed price quickly, paying for all legal work, and completing the sale in around a week.

Property buying companies may well be able to offer you an option that is significantly better financially than being repossessed, while taking the whole stress issue, out of the equation.

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