Lenders can start the repossession process for your property if you’re unable to make your mortgage repayments. The mortgage law gives lenders the legal right to apply to repossess your home after you’ve been in arrears for 90-180 days. They will need to get a judge to grant an order for possession before they can process with the repossession.
If you’re facing repossession, it’s important not to panic. Your lender is legally required to follow a procedure and has to give you at least 15 days’ notice of a repossession order, in the form of either a written warning or a repossession notice. You should make sure that you fully understand the repossession process, as knowing the stages can help you avoid repossession. This will also let you know that you can stop the repossession mid-process.
By extending your mortgage term to allow you to make smaller payments each month
By taking a mortgage payment holiday, to allow you to stop making your payments until you’re back on your feet
By capitalising your arrears- show your lender that you’re trying to deal with the problem
By potentially changing your lender if you can find better terms.
If you’re able to make an agreement with your lender and stop the repossession, then you’ll need to focus on keeping up with your payments to avoid a repeat. This is usually easier said than done, but there are a few ways to avoid falling into the same trap.
How do I get control of my mortgage?
There are a couple of things that you can do to get back on top of your mortgage payments and reduce the risk of repossession.
1. Be stricter with your finances
Make a budget and stick to it, or make a spreadsheet and log each time you make a purchase if it’s easier to have something visual. It won’t take long to see where you’re spending unnecessarily and will help you start to save it instead of waste it.
2. Get expert advice
It’s important to speak to someone who knows exactly what they’re doing and has helped people in the same position as you before. Asking for help isn’t admitting defeat, it’s taking a step in the right direction and could be the saving grace that you need to save your property.
3. Check if you’re eligible for any benefits
If you’re not currently receiving any benefits, it’s worth checking to see what you may be able to get. Even if it isn’t much, that bit extra a month could go a long way and make a big difference in your budget.
Whilst it’s a more extreme option, if you know that you can no longer afford your payments and would rather deal with it yourself than face being repossessed, you can sell your house and use the proceeds to pay off your debt and find something more affordable. If this is an option that you’d like to look into more, visit We Buy Any House today for a free offer on your property.
We buy any home in as little as 7 days, or timescales to suit you. Head to our website for more information.