Facing repossession of a property? You should read this article for helpful advice and tips on how to avoid repossession of your home. Property repossession is one of the worst situations for homeowners or property investors to go through. After years of being in your home, perhaps bringing up a family there and going through major stages of your life, it’s heartbreaking to face the fact that you could lose your beloved home.
There’s no set time period in which the property repossession procedures occur, but there are some things you could do at various stages to try and avoid property repossession. Here we explore what these key methods are and how to avoid repossession of your home.
Be financially savvy
Keeping on top of your finances and being financially savvy could help save you the heartache of repossession of your home. If your finances are tight or your circumstances are changing (such as your job being on the line or you’re splitting up from your partner) then keeping a clear eye on all areas of your expenditure is wise.
Monitor your finances
Make it a habit to keep on top of your finances by keeping records of all income and outgoings – aim to do it regularly, such as on a weekly basis. Use a spreadsheet to record everything. When you have a record of all your regular payments and can look at what you’re spending your money on, it can be easier to see anything that might be unnecessary. Look for things you could cut down on or exclude – if money is tight, it helps to make any changes you can.
Review subscriptions and regular payments
Be honest with yourself and your family and discuss why it’s necessary to cut back. It may seem like insignificant spends, but regularly payments or monthly subscriptions all add up. Likewise, explore your options and shop around for other services that may cost less. When it comes to renewing payments, such as car or house insurance, shopping around could help you get a better deal.
Where possible, try and save any money that you can so, if you do have a difficult month, you’ve got something to fall back on. It’s useful to have savings you can dip into if you need to, rather than ending up in arrears with your mortgage payments.
Find help on how to avoid repossession of your home
If you’ve received a letter to say that your mortgage payments are in arrears and your lender is going to take action, don’t be afraid to reach out and ask for help.
Organisations such as Step Change and Citizens Advice are good for general information, help and advice about debt issues and may be able to point you in the right direction as to what to do next. It can be reassuring to talk your financial issues through with a third party, or someone who’s not directly involved in your situation, and you may find it puts a new perspective on things.
Asking for help can also put you in good stead with your mortgage lender. They’ll be pleased to see and hear that you admit there’s an issue and aren’t burying your head in the sand and it may put you in a better position for dealing with them. It may help you to understand the order of the repossession process before talking with your mortgage lender.
Work with your mortgage company to avoid repossession of your property
Believe it or not, mortgage lenders aren’t an inhuman bunch. They don’t want to have to repossess your home any more than you want to lose it – they just want you to be able to manage to make the monthly payments you owe. After all, it’s what you agreed to do when you signed and accepted the mortgage contract in the first place.
If you are at risk of repossession of your home due to missing one or more monthly mortgage repayments, under law your mortgage lender needs to work with you fairly to try and help resolve your money issues. It can be hard to admit you have an issue, but at this stage it’s far better to be open to working with them, rather than fighting against them.
Other options available
- An agreement to pay your mortgage arrears in installments, rather than as one lump sum – this may help you manage your debt more effectively.
- Switching to an interest-only mortgage – you’d still need to pay back the capital eventually, but it can ease the pressure.
- Extending the terms of your mortgage – this could help reduce the amount of your monthly payments and make them more affordable.
- Getting government mortgage help – called Support for Mortgage Interest.
- Providing a payment holiday – a temporary break from paying your mortgage, which could help you get your finances back in order (although you will have to catch up on the payments at some point).
If you’re willing, your mortgage company will be able to help advise you on the best way to avoid repossession of your home and work with you on achieving it.
Sell your property
If a change in circumstances or a dire financial situation means that you can see no obvious way out of keeping your home, or have explored the other options and not found a solution, it’s definitely worth giving serious thought to the option of selling your property instead. Choosing to sell your home yourself gives you control of the situation and means that you won’t have to face the trauma of having your home repossessed.
Obviously, if you’re in dire financial straits or your mortgage company have already started proceedings to take you to court due to your mortgage being in arrears, then you’ll need to find a quick way to sell your home. The traditional route of listing it for sale with an estate agent can take time and money – neither of which you’re likely to have.
The quick option
In this situation, that’s where specialist sell house quickly firms come into their own. They’re experienced in buying property quickly and the process is efficient to do. What’s more, you’ll get a lump sum cash payment.
The amount you receive will be below market value, but to help you avoid repossession and get your home sold quickly and without stress, it’s worth it. Just take a local at the testimonials from satisfied customers to see how beneficial the process is.
Facing repossession of your home can be a terrifying experience, but you don’t have to face it alone. By selling your home, you can pay off your outstanding debts and, hopefully, have enough cash left to rent or purchase a more affordable new home.
Hopefully this has given you an insight into some of the options available to you. If repossession is a threat on your horizon, don’t ignore it. The sooner you take action, the more chances you have to avoid repossession of your home.