It’s never too late to try to stop home repossession

There are several things that you can do to stop home repossession. Here is a list of actions that you can take to protect your home from repossession.

Talk to your lender

As soon as you realise that you might miss your mortgage payments, talk to your lender. Lenders would always talk to you and help you in all possible ways so that you can avoid repossession and keep the home. No lender can take the borrowers to court if they do not complete the pre-action protocol. The lender has to help the borrower to pay the mortgage before taking them to court.

Once you contact your lender and let them know about your situation they must cooperate you in following ways:

  • Inform you how much you owe to them
  • Consider your repayment proposals if any
  • If they do not accept your payment proposals, they have to show you the reasons
  • If they decide to start legal actions against you, they have to give you 15 days notice

Lenders can help you in following ways:

  • Increase the loan terms so that monthly payment gets reduced
  • Agree to accept reduced payments for a short span of time
  • Adding the debts accrued due to non-payment of monthly instalments to the principle debt that you borrowed

However, to get such cooperation from your lender you have to do the following things:

  • Show them that you also want to pay the mortgage and you want to cooperate with them; never neglect any correspondence or phone calls from them
  • Pay as much as you can
  • Keep in touch with them
  • If the lender agrees to change the loan terms or agrees to accept reduced payment, then get it in writing

There is another alternative; you can sell your home fast.

Sell house fast to cash buyers

Cash buyers can help you to stop repossession by offering a quick sale. They are property investors; they can purchase your house for instant cash. You can use the money to clear your debts and keep your credit in good shape by avoiding repossession. Inform your lender that you are going to sell your home so that they do not start any legal proceedings against you.

There is a third option also; you can seek independent money advice from independent agencies such as Citizens Advice Bureau or Shelter. Take the right step and protect your credit from the stigma of repossession.

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks

Tags: ,

Leave a Reply

You must be logged in to post a comment.