While many consider it a personal dream to own a home, the dream can quickly turn into a nightmare if you are unable to keep up with the repayments. In this article, I’m going to look at the repossession process and how to avoid it.

How Does House Repossession Work?

The term ‘house repossession’ can strike fear into the heart of the bravest of homeowners. After spending years saving for a deposit, it is always undeniably heart-breaking to learn that you have to start again from nothing. The laws currently in place are there to protect the interests of the mortgage lender and not the homeowner. To be fair to lenders, they are often more than willing to give you several opportunities to clear your arrears. They tend to only involve the courts if they believe you have no intention of paying or are unable to afford the repayments at any point in the near future.

What Happens When Your House Is Repossessed?

All lenders must follow a pre-determined set of rules and regulations before initiating court action. Under normal circumstances, a lender will contact you when you miss a payment. If you have a genuine reason for missing it, then they will happily adjust the amount you pay over the proceeding months. A valid reason, for instance, would be the loss of your job or an unexpected medical treatment causing loss of work.

If, however, you have missed multiple payments, the lender may apply for a court order to commence repossession proceedings. If a judge considers their reasoning just, then the courts will schedule a hearing during which the aforementioned judge will hear both sides of the story. He/she will then decide whether you can keep your home, or if the lender has sufficient reason to repossess.

How To Prevent The Repossession Of Your Home?

Preventing repossession is possible but generally requires the help of someone experienced in this type of situation. It is recommended that you discuss your situation with a legal advisor prior to your court date. There are three possible positive outcomes a judge can rule:

• They could rule in your favour, allowing you to continue living in your home without risk of further prosecution
• The case could be adjourned, providing you with more time to prepare before returning to court
• The judge may issue a suspended possession order which allows you to stay in your home, provided you adhere to the conditions set by the judge

Can House Repossessions Be Stopped?

Many people who are facing repossession will take the opportunity to sell their home as fast as possible. Selling allows them to make the necessary repayments and still recover a portion of their original deposit. One of the most popular ways to accomplish this is to utilise the services of a house-buying company like Olivia Rose Estates. Since we are able to complete a sale in as little as two weeks, you can rest assured that you will be able to sell your home and repay the lender before being removed by a bailiff.

Other Methods Used To Avoid A House Repossession

Discuss with lender – This should be your first port of call. For most lenders, it is much simpler to discuss and work out a repayment plan than it is to go through the court. Furthermore, in accordance with lending law, a lender must treat you fairly and provide you with ample opportunities to make the necessary repayments.

Rent out your property – Rental payments will almost always be more than the monthly mortgage repayments you originally agreed upon. This, therefore, means that you can move into a separate rented property yourself and cover these costs with your wages. You can then use all the money earned from the tenants in your proerpty to pay your own mortgage as well as beginning to pay off your arrears.

Mortgage Repayment Insurance – If you have Mortgage Repayment Insurance, then your insurance provider will be able to continue making payments on your behalf. However, it must be noted that this only covers you for the reasons specified in the terms and conditions and for the length of your policy.

Citizens Advice Bureau (CAB) – consult with a CAB worker about whether you qualify for government aid.

What Happens After A House Repossession?

If the worst comes to the worst and your home is repossessed, the following steps will occur:

• You will be given a set amount of time to vacate the property. If you do not leave within this time then the courts will send a bailiff to forcibly remove you
• The lender will take possession of your home, and list it for sale
• The lender must sell the property in a reasonable amount of time, otherwise they may be seen as trying to capitalise on the situation by taking advantage of rising house values. If you feel that they are doing so, then you are within your rights to complain to the Ombudsman

Unfortunately, the price at which the property is sold after repossession is unlikely to be as much as if you were to sell it yourself. The money received will be used to cover the following costs:

• Your outstanding mortgage
• Any repair or maintenance fees for damage that could prevent a sale
• The legal costs they incurred from taking you to court
• The costs involved in the sale of the property. For instance, estate agent or solicitors fees

Are you looking to sell your home before it is repossessed? Why not ask Olivia Rose Estates for advice, as we buy any house.  By selling your home to us you can avoid repossession and could receive a guaranteed cash purchase, in a timescale that suits you. It could be a couple of weeks, or even just a few days. Selling your home to us is a financially viable way to get repossession stopped and you can use the cash that you receive to pay your creditors instantly. This stops the bank selling your property to the highest bidder at auction, where you have zero control of the sale!