If you’ve fallen behind on your mortgage payments and have been in arrears for some time, your provider may threaten to repossess your home. This means that they will take the house from you, often with no warning, and sell it to repay the debt
This, understandably, can be very stressful, especially in cases where you may still be left with the debt to pay.
What happens if you get your house repossessed?
You’ll usually be sent a notice of repossession in the post. When this arrives, read it carefully and follow any instructions in the letter. Your mortgage provider may want you to call them to discuss the situation, and it’s important that you do this.
The letter may also include a court date. While this may cause you even more stress, going to the hearing gives you a chance to offer a payment plan to the company.
Home repossessions are normally a company’s last resort to collect a debt, so you may still have a chance to discuss other options. As we’ve said before, moneylenders are always keen to recover the debt without it being taken too far.
We strongly advise you to contact us to see what options are available to you to before attending any court hearings related to your mortgage debt.
How long does it take for a bank to repossess a house?
Repossession doesn’t happen overnight. It can take up to a few months to go through the process with the court, which gives you time to contact the bank and sort out a solution to the situation.
The bank will normally write to you to pay your arrears for some time before applying to the court. This is because they have rules that they have to follow when it comes to dealing with your accounts.
It’s important to note however that once an order for repossession has been served, it cannot be taken back. You are normally given 28 days to leave your home, but this can be extended up to 56 days.
How can I stop repossession of my house?
It’s important to deal with your mortgage arrears before it reaches the repossession stage. Contact your provider to tell them about your situation and try to reach a solution as quickly as possible.
You can also ask to change the terms of your mortgage in order to help you. This includes asking them to lengthen your contract or the type of mortgage you have.
There’s also the option to change your provider completely before you get into arrears. That way you can get yourself a better payment before it goes into a downward spiral.
If you need extra cash to help pay your mortgage, you could bring in a roommate. Charging them rent to help you cover the payments means you wont fall into arrears and may even give you some extra money for yourself.
If you have received a notice of repossession or are struggling to pay your mortgage, contact us today. Our expert advisers can work through your debts from the moment you contact us and are trained to give you the best advice for your situation.
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