Home Repossession Process

If your mortgage is in arrears and you are faced with your house being repossessed there are things you should know and things that you can do to potentially stop repossession.  It is a costly and lengthy process for a mortgage lender so it is in their interests as well as yours to resolve the situation and avoid court proceedings.

Mortgage Arrears

In theory your mortgage is in arrears from the first day you miss a payment however it is unusual for mortgage lenders to consider taking more serious action until you have missed at least 3 months’ worth of payments.  Even at this point mortgage lenders can’t just demand the keys to your house and throw you out. Your mortgage lender is obliged to follow pre-action protocol rules before they can take court action. The means that only as a last resort and when all other options haven’t worked will the lender be able to proceed with court action.

The Pre-Action Protocol for Mortgage Arrears – LENDERS’ DUTIES

Your mortgage lender must try to discuss your finances with you and give you a chance to put things right before the repossession process is started. Your lender is required to consider any reasonable suggestions you make to pay off your arrears to stop your house being repossessed. Your lender must advise you in writing of your payment history, monthly instalments and amount of your arrears.  They must also advise you on how much of your mortgage is left to pay and the interest or charges that will be added if your mortgage arrears are not paid.

The Pre-Action Protocol for Mortgage Arrears – BORROWERS DUTIES

These pre-action protocol rules also apply to borrowers.  It is important that you can show that you have remained in regular contact with your lender since going into arrears and looked at coming to an arrangement to stop repossession.  In short you will need to illustrate that you have explored all available option for paying off your arrears.  This is also the time to look into whether you qualify for any government support, hold mortgage payment protection insurance or discuss a mortgage holiday and reschedule payments on the mortgage.

Ways to delay court action and stop home repossession

If the above options have been explored and proved unsuccessful with regards to satisfying the mortgage arrears, an alternative to consider is selling your home to stop repossession.  You will need to discuss this with your lender and ask them to delay repossession while you try to sell your home.  Bear in mind that selling your home through a traditional estate agent or via auction may take a considerable amount of time, which your lender may not agree to.

An option to consider would be selling your property to a private house buyer otherwise known as cash house buyers.  They will offer you up to 85% of the value of your home which you will need to ensure covers the total mortgage owed to the bank.  In an unregulated industry it is key to choose a cash house buyer that is a member of the National Association of Property Buyers (www.napb.co.uk).  By being part of this group a cash house buying company is committing to follow a code of practice and set of guidelines.

Cash house buyers, like Halo House Buyers, have cash available to buy your home and stop you house being repossessed within a very short time frame – anything from 24 hours to 7 days! Not only will they save you money on estate agency fees but reduce the time dramatically on selling your property.  So why not give Halo House Buyers a call today and find out if they can not only stop your house being repossessed and avoid further financial issues involved with house repossession?

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