Going through the process of house repossession is undoubtedly an incredibly stressful time for everyone involved however there are ways in which you can postpone or stop your home being repossessed. This infographic covers the typical house repossession process, why and how it can happen and how you can deal with it.
There are a number of reasons as to why you may have your house repossessed, such as mortgage arrears, bankruptcy and default on secured loans. Statistics show that times of national financial crisis such as the 90’s housing crash and the 2008 recession have a direct impact on the amount of repossessions taking place. This is reflected on the graph which shows a 92% increase in repossessions between 2007 and 2008 in particular during the 2008 recession.
Although house repossession may seem inevitable, there are some steps you can take in order to prevent it from happening. The initial thing you should do is contact your lender and work with them to find the best solution possible. Lenders are now legally required to consider your payment proposals and respond to them before initiating the repossession process, therefore it is in your best interest to start a dialogue. Try following these steps:
- Contact your lender to discuss a payment proposal in order to buy you more time
- Get legal advice from a qualified professional or service
- Change your mortgage terms – for example to interest only payments or a longer term mortgage
The UK government also provide a free legal representation for repossession hearings in most major county courts which when used 50% of immediate repossession cases are prevented.
If for any reason you can’t come to an agreement with your lender, then look into opting for a bridging or repossession loan from a lending agency or look into potentially selling your home before it is repossessed as you may get a better price for it.