For many people, buying a home is a dream come true. However, that dream can soon start to fall apart if mortgage payments are not kept up. Indeed, if you accumulate arrears, it can result in your property becoming repossessed. In the following insightful article, you will learn about the repossession process and discover how to avoid it.

What is home-repossession?

House repossession laws protect the interests of mortgage lenders if you cannot cover the monthly fees agreed. That means if you do not keep up your mortgage payments, you could find your property becomes repossessed by your lender. The good news is, most lenders will give you several opportunities to clear your arrears before they take further action. For instance, unforeseen circumstances like losing your job can be responsible for your inability to make mortgage payments. In that event, the majority of lenders will adjust the amount you pay each month until your arrears clear. However, if it becomes apparent that you have no intention of paying the arrears, or that you are unable to afford the repayments soon, the courts can get involved. 

What happens when your home becomes repossessed?

When you have missed multiple payments, your lender can decide to apply for a court order to commence with repossession proceedings. A judge will determine if the lender’s reasoning is fair or not. If it is, the courts will schedule a hearing date. At the hearing, the judge will use his or her discretion to stop the property from being repossessed. If the courts decide your property must become repossessed, you will have a certain amount of time to vacate your home. Your mortgage lender will then take possession of the property and list it for sale. The price the property is sold-for will not necessarily be as much as it would be as selling the property yourself. That is because the price has to cover costs like your outstanding mortgage amount, court fees, and the costs involved with selling the property. Repossessed homes can be sold quickly through companies like Sell Fast.

How do you avoid your home becoming repossessed?

Get Legal Advice

If your mortgage lender informs you that they are commencing repossession proceedings; you have the opportunity to discuss your situation with a legal advisor before the court date. That could help you to prevent the repossession. Your legal advisor will put forward his or her case to the judge. The judge could rule in your favour and allow you to live in your home without any risk of prosecution. Alternatively, your legal advisor’s case could become adjourned. That means you would have more time to prepare your case before you return to court. The other possible outcome from a legal advisor’s argument is: the judge could issue a suspended possession order. That allows you to stay in your property as long as you adhere to the order’s conditions.

Sell Your Home with Sell Fast

One way of overcoming a home repossession altogether is to sell your property as quickly as possible. By doing that, you can make enough money to pay off the arrears. Furthermore, you can recover a portion of the deposit you originally paid to your mortgage lender when you purchased your home. One of the best ways to accomplish this course of action is to utilise the services of a house-buying company, such as Sell Fast. Sell Fast are able to complete a sale in as little as two weeks from the first point of contact. You can rest assured that you will be able to sell your property and repay the lender before being removed by a bailiff.

Other Options to Consider

Before you decide to sell your home quickly through a company like Sell Fast, you should be aware there are other options available to avoid repossession. For example, you could:

  • Rent out your property.Rental payments tend to be higher than monthly mortgage payments. By renting out your home and renting a smaller property for yourself, you can gain additional money each month. That money can be used to pay back your arrears.
  • Take out mortgage repayment insurance.By having this insurance, you could stop your home becoming repossessed. With mortgage repayment insurance, your insurer will make mortgage payments on your behalf if you meet the policy’s terms and conditions. Mortgage payments are typically paid-out if you have an illness or an injury, or if you have lost your job through no fault of your own.
  • Consult the Citizen’s Advice Bureau.Your situation could perhaps qualify you for government aid. Find out if you could avoid home repossession via this option.

Looking to sell your property before it is repossessed? Why not contact Sell Fast for advice, as we buy any house. Call 0800 368 7399 or request a call back to find out how much you could get for your property.