Options When Faced With Repossession
If you are facing the risk of repossession then all is not lost. In actual fact a lender will only take the extreme measure of repossession if this is the last resort. The majority of lenders are willing to help and do understand that there can be short term problems and they could work with you towards coming to an agreement. The most important point to remember is to get in touch with your lender as soon as you can when problems arise.
The first step the lender will take is to get in touch with the homeowner by letter. As soon as this drops through the letter box respond and make an appointment to see the key person in charge of your mortgage. Never make the mistake of burying your head in the sand and hoping the problem goes away, it will not. If you need some help and advice then you can contact such organisations as your local Citizens Advice bureau. Usually they are able to give you advice and even help when it comes to setting out a proposal to catch up on your missed repayments.
There are many choices when it comes down to agreeing a compromise between yourself and the lender to catch up on your missed payments. These will depend on the lender and other various factors, basically a lender will take into account
- The amount that you have gotten behind on with your mortgage repayments
- The circumstances which led to you defaulting on repaying your mortgage, such as being made redundant
- The details of the mortgage you have such as a repayment mortgage or interest only
- Your proposal for catching up with the amount you owe
Your lender may be willing to lower the amount you pay each month by extending the period of your mortgage or change the mortgage repayment method. However if you are in severe debt and this is likely to be for an extended period of time then you would be wise to get in touch with experts such as the National Debtline. They can help and advise you on how to put together a realistic proposal for getting back on track which you can then show your lender. Together you can work out such as
- The amount you have coming in and going out each month
- Working with your lender to explain the reasons for your financial distress
- Give advice on how you can reduce your debts for the future
- Putting together a proposal for repaying your debts based on your income and expenditure
Risk Warning: If you enter into a sale and rent back agreement you are unlikely to get the market value of your home and, as a tenant, may only be able to remain there for a limited period. There may be other options available. Please ask for a Key Terms Statement.
We do NOT offer the sale and rent back arrangements anymore. These arrangements are no longer authorised by the Financial Services Authority. No company can legally offer you a sale with a rent back. However, if you’re interested in selling without renting back, please get in touch with us today as we will be able to make you an offer.
