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The house repossession process makes you homeless.
In a nutshell: If you fall behind with your mortgage
payments you are said to be "in arrears". Your
mortgage lender will want you to catch-up and
pay-off the arrears. If you don’t, your lender will
then seek possession of your home. Effectively your
lender starts legal action through the courts with a
view to evicting you.
By evicting you, your lender is
then free to sell the property to recoup their
funds. If there is any shortfall resulting from the
sale (not uncommon), you can be pursued for up to 12
years for the outstanding debt (in England and
Wales). The situation is slightly different in
Scotland where the time available to the lender to
pursue the debt can range from 5 to 20 years. It all
depends on whether your lender decides to treat the
shortfall as secured or unsecured debt.
During the credit crunch
lenders seem predisposed to acting early,
particularly on high loan to value cases.
The process can be halted
at any time
The further into
the repossession process you get, the more your range of options
narrow and the more likely you are to need
specialist help - which can take a number of forms.
It is always better, if you can
save your own
house. You increase your chances of keeping
your home if you avoid the common mistakes people
make. A little bit of knowledge goes a long way. If
you believe you've found a solution there is a way
of
halting or
freezing your repossession.
Research shows that you're far
more likely to reach an agreement with your lender
(in or out of the courts) if you have legal
representation. But lawyers cost money...
Charity
Transact
a forum promoting financial
inclusion, has drawn attention to the rising numbers
of homeowners threatened by repossession because of
the credit crunch. It says rising demand for legal
help or support from specialist advisers means some
people may not get access to specialist advice. The
charity says some homeowners may not qualify for
legal aid or be able to afford a solicitor.
We've also noticed
that homeowners can struggle to get access to
solicitors (free or paid) at short notice. So act
early to avoid being one of the homeowners that
"slips through the net".
Reaching the end of the road..
If you feel you have
exhausted all the options for
stopping repossession on your own, the clock
of course doesn't stop ticking.
Selling your house may be your last resort.
Even if you decide to sell,
there are a range of alternatives for selling
depending on your circumstances, your property and
where you live.
If you don't have time to sell
on the open market using an estate agent (or have
tried and failed..) you can opt for an outright
cash house sale
to a professional property buyer.
If you want to avoid
repossession but remain in
your home it may be possible. In Scotland, for
example, homeowners in arrears have the option for
applying to a Government scheme which puts
qualifying homeowners in touch with a social
landlord. In England and Wales even if your local
council has no equivalent scheme, they might be able
to put you in touch with a local social landlord.
The alternative is a commercial
sell and rent back
scheme.
If you think you
may need the assistance of a professional property buyer
to help you avoid losing your home you're
welcome to contact us on
0800
043 0669.
Alternatively
complete the form below. |
