Help! My house is being repossessed: Practical solutions to avoid repossession
When we buy a home we all assume that we will move out when we are ready, right? But, what do we do when this decision is taken out of our hands?
Perhaps you have been struggling financially due to a change in situation and, until it actually happened, the thought of your dear house being repossessed had never really crossed your mind.
Firstly, don’t panic. Whilst it is a horrible situation to be in, there are actually ways to avoid it happening.
So take a deep breath, make a cup of coffee and read on…
Get Advice
There are several things a mortgage lender must do before they can repossess your home and there are timescales they must adhere to – so you do have some time even though it may not feel like it. Even if they get to the stage of starting court action, you may still be able to reach an agreement.
You may be able to stop, or at least postpone, the repossession and you also might be able to get legal aid to help with any costs. Speak to the experts about your individual situation and find out your rights.
You can get free advice from:
Citizens Advice
StepChange
National Debtline
Payplan
Shelter
Your local council
Keep in Touch
Don’t bury your head in the sand! You need to keep in touch with your lender – the situation will only get worse if you don’t, whilst it could easily be resolved if you do. It’s healthy to maintain a dialogue.
Work out Your Finances
One thing your lender must do is to consider a request from you to change the way you pay the mortgage. So, make sure you have been using your time wisely to get your finances in order and make a plan of how you could pay it off. You need to draw up a list of your monthly income and outgoings – so you can discuss options available to you. Your lender may be able to offer lower cost alternatives.
See if you are Entitled to any Benefits
The break down of a relationship or an unexpected redundancy could mean that there are no incomings for you to work out. In this case you may be entitled to benefits, such as Jobseekers’ Allowance – just make sure you are actively searching for a job and you have evidence of this.
Fill in a Defence Form
If it goes to court you can fill in a defence form to explain why you don’t think your home should be repossessed. Again, take advantage of the help available from experts to get advice on how to best fight your corner.
Court Hearing
If it goes to a court hearing you must turn up. If you don’t you could automatically be evicted. Here you can bring proof of your finances such as payslips, letters about benefits and bank statements to make your case.
A Quick Sale
If you have explored every avenue, only to be faced with dead ends, then to stop house repossession, you may have to sell your property quickly. You might think this isn’t possible. Selling your house takes forever, right? Well, there are companies that will buy your home off you for cash. This can take as little as seven days, so you can quickly pay off your debts and then work out from there how you use your money to get yourself set up again. It could be that you rent while you get yourself back on your feet. But, at least you are able to get the cash and get yourself out of a tricky situation.
