In the event that you fall behind on your mortgage payments, your home might be repossessed if you cannot catch up with your payments or come to an arrangement with your bank. Every month many face repossession and search for ways to avoid losing everything.
There are usually ways out of repossession so you don’t ruin your credit or have a repossession on your credit report. Losing a home is certainly stressful and traumatic, but there are usually ways to avoid repossession.
It is essential to educate yourself about the repossession process in order to prevent it from occurring. It is better to take action yourself than wait for help to come. Keep control of the situation as much as you can, don’t wait until the bailiffs arrive before frantically looking for help.
If you can’t make your mortgage payment, contact your lender immediately. Homeowners default on their mortgages for various reasons. In this day and age, mortgage lenders understand the hardships people face, which is why they prefer to not initiate foreclosure proceedings. Their main goal is to protect their most valuable asset, your home, so they would rather you keep paying them monthly.
The lender might detect if there is a problem if you miss one payment. Many lenders would rather you pay them something than nothing. Don’t be embarrassed or ashamed, and don’t think you’ll simply pay extra next month. Should you not reach an agreement with the lender that allows you to continue paying, selling the property before repossession i.e. before they take it away from you could be a better option, since you have no control over what the lender is selling it for as it may not be enough to cover your debt. If the lender sells your repossessed property for less than the amount you owe them, you may still have to pay the remaining debt in the future.
You will receive a blank defense form and instructions on how to fill it out if your lender starts repossession proceedings against you. Use the form to explain why you don’t think the lender should repossess your home. Other documents you shall receive shall include;
- Copies of the claim forms for possessing your home (completed by the lender)
- Details of the court hearing including date and time
- Contact details for the court
- Help with legal costs
Your home can only be repossessed by the lender if the court allows it. The judge may also;
- Adjourn or delay the hearing
- Set aside the case and ensure no order will be made
- Grant the the repossession order
- Delaying eviction
NOTICE: This information is not intended to be legal advice. If you are going through a repossession, you need to consult a legal expert before making any decisions. Hamilton Paige can help you in court should you wish to sell to us and help prevent a repossession order being granted.
If you want to talk to Hamilton Paige about selling your house before it gets to this stage please fill in some details on the contact form below and we’ll get back ASAP.
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