XTREME PROPERTIES Ltd
Stop Repossession of Your House
We often assume we'll decide when to leave our homes, but what if that choice is taken away? Many struggle with the high costs of homeownership, which remains a major financial burden. Beyond the initial purchase, ongoing mortgage payments and repair expenses add up.
The Financial Conduct Authority notes over £15 billion in late mortgage payments in the UK, a figure that, while reduced since the 2008/9 recession, still affects over 80,000 people in significant arrears
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What is House Repossession?
House repossession occurs when a lender, who has a loan secured against the property, seizes it to settle a debt. This typically results from missed mortgage payments but can also apply to any secured loan against the property. After repossession, the lender can sell the property to recover the debt.
Why Do Houses Get Repossessed?
To Stop Repossession of Your House it is better to know house repossession happens when loan payments secured against the property, like a mortgage, are not maintained. Missing payments can lead lenders to seize the property to settle the debt. However, repossession is a last resort. Lenders prefer borrowers to repay their debts, and there are multiple opportunities to resolve payment issues before repossession becomes necessary.
How Many Payments Can Be Missed Before Repossession?
Major UK lenders generally refrain from starting repossession proceedings until three mortgage or loan payments are missed, a policy smaller lenders often follow. Missing a single payment shouldn't cause concern; catching up promptly typically prevents property loss.
After three months of missed payments, repossession proceedings will commence. However, the lender's aim isn't immediate eviction but to collaborate on a repayment plan to resolve the situation smoothly, offering guidance throughout the process.
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How to Avoid a House Repossession
The quickest way to get your home repossessed is to ignore the lender. As we mentioned, lenders want to collaborate with you. If they initiate contact, engage with them promptly. You might reach a mutual agreement. It’s crucial to communicate early if you anticipate payment difficulties. Addressing issues promptly can prevent them from escalating, potentially offering solutions that reduce payments temporarily, rather than accumulating further arrears and Stop Repossession of Your House.
- Set up a repayment plan for the missed payments, gradually clearing arrears each month.
- Freeze interest temporarily to reduce immediate repayment obligations.
- Adjust monthly payments by extending the loan duration, albeit with increased overall interest.
- Explore mortgage type changes or alternative plans offered by the lender.
As long as your proposal is reasonable and you’re confident in your ability to meet the agreed terms, reaching an agreement with the lender is probable.
If your income has fluctuated, consider exploring alternative financial assistance options. This could involve applying for benefits such as universal credit or seeking support for homelessness. Additionally, taking on part-time work temporarily can help stabilize your financial situation until you regain stability.
If you’re struggling to afford mortgage repayments, consider selling your home quickly to halt the repossession process. This approach allows you to settle your mortgage debt swiftly and avoid having a repossession on your credit report. Cash house buyers like We Buy Any Home offer a fast option to sell your home, ensuring a quick cash offer to assist you.
Selling your home before repossession typically yields a better price than what your lender might secure, reducing the likelihood of needing to cover additional costs to the lender.
The Number Of People With Mortgage Arrears Of More Than 2.5% Of Their Outstanding Balance...
2.5% – 5%
34,900
5% – 7.5%
15,300
7.5% – 10%
8,600
10%+
24,500
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How The Repossession Process Works
(Step by Step)
In the UK, the Financial Conduct Authority (FCA) have specific guidelines in place that detail the exact process a mortgage lender must follow before they repossess your home. This should make every single step predictable, so you’ll know what to do along the way and what to do to stop repossession of house.
The initial step involves the mortgage lender notifying you about your arrears. They must provide the following details:
- The amount of your arrears
- A record of payments made in the past 2 years
- Interest and fees to be added to your mortgage
- Your current monthly payment obligations
- The total remaining debt
You should also get a bit of information on how to seek advice
Once notified, you can submit an offer to the lender. Your offer should be realistic to avoid wasting time for both parties. Seek guidance from advice helplines to help you formulate a suitable offer.
The lender is legally obligated to consider any offer you submit, informing you of their decision within 10 days.
- Accepted Offer: If accepted, the process halts. Fulfill your commitments as agreed.
- Rejected Offer: If rejected, you can propose a better offer. Alternatively:
- Seek financial assistance.
- Begin selling your property at a fair price.
If you prove you’re taking these steps, the lender will pause repossession proceedings. If you sell to us at We Buy Any Home, proceeds should cover your mortgage.
If you haven’t found a solution, the lender must notify you two weeks before taking legal action. You’ll receive a court date to present your case and propose a resolution.
If a repossession order is issued, the final phase begins. However, the judge may grant you time to settle the arrears, albeit limited.
Remember, negotiations with the lender are still possible post-repossession order. They may accept offers until the repossession date, though they aren’t obliged to respond.
If the judge orders repossession of your property, you’ll typically be given a 28-day notice to vacate. Failure to leave by this date may lead to eviction, which could involve obtaining another court order.
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We can buy your house fast wherever you across England, Scotland, and Wales.
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