You can stop the repossession of your house if you have financial problems or are struggling with mortgage payments.
What Is House Repossession, Exactly?
Your mortgage lender can obtain a court order to repossess your home. A mortgage is a loan that you use to purchase a property. The lender has a financial interest in your home, which decreases over time as the debt is paid off. Mortgage lenders may take full control of your house to help you recover money if you miss payments.
House repossession can be accompanied by court action to seize your home. Repossession is not an option. It can happen after three or more missed payments. However, lenders will try to work out a plan to help you pay off your debts. Lenders that provide financing to high-risk candidates
will only take action after two missed payments.
What Happens To Your House If It Is Repossessed
You can read the following house repossession process to learn how it works if you have confirmed that your house is being repossessed.
You should keep proposing alternative, reasonable ways of repaying your arrears as well as your mortgage to your lender during the repossession process. They may agree to a payment plan at any stage up to the day you are evicted. Repossession is not an option for lenders.
How To Stop Repossession Of My Home
A house repossession order can be very worrying. However, it is possible to avoid repossession of your home up until the day you are evicted. It is never too late to act because it is not financially profitable for your mortgage lender.
Talk To Your Lender
The pre-action protocol requires that your lender gives you the chance to meet with them outside court. You should be allowed to talk with them for a reasonable amount of time, or to arrange another method of payment.
If you want to stop house repossession, you should ask your lender whether you can modify your mortgage, extend your term, or lower your payments. Lenders will consider all options if you can demonstrate that this will allow you to continue paying your mortgage payments. You can submit a new loan proposal to your lender.
However, you should always make sure that any communications between yourself and your lender are in writing. If you decide to go to court, you’ll have an opportunity to explain the situation to a judge and you will also have evidence of the efforts you made to resolve the issue.
Pay Towards Your Arrears
Even if it is impossible to pay all arrears or your full mortgage repayment, you should make every effort to pay them as soon as possible. You are demonstrating that your priority is to pay these arrears back and that you intend to catch up on your mortgage payments by paying even a small amount.
Rent Your Home
Renting your property is an innovative solution to house repossession and debt arrears. Take on a lodger to share your home or, if possible, rent out the entire house. This income can cover a large portion, if not all, of your mortgage repayments.
This should only be done with legal agreements. Talk to a financial advisor before making this move.
Check If You’re Eligible For Financial Help
If you have experienced a significant life event that has caused financial difficulties, you should find out if you can claim benefits.
You may be eligible for financial aid if you are disabled or have suffered an injury that makes it impossible to work. The government will help you pay your debts and stop you from being repossessed.