Top Tips To Avoid Repossession

Don’t be an ostrich

With repossessions rising by 21% in the last year and predicted to increase in 2008 many homeowners may have concerns about how to handle to repayment difficulties and avoid repossession.

The key to sailing through a stormy period in your finances is to identify your problems at an early stage, to be realistic and to communicate. These key principles are most affective the earlier you apply them but are relevant at every stage whether you are struggling to pay, have missed one or more payments, or if court proceedings have been issued.

Struggling to Pay 

Many people encounter difficult periods in their finances; you are not alone. The key thing to remember is that your mortgage company will almost always been keen to work out a satisfactory solution and avoid repossession.

Don’t be afraid to seek help from organisations such as the Citizens Advice Bureau and to contact your mortgage company as soon as possible to discuss your options. Be truthful about your situation and realistic about what you can afford to pay.

• Act now
• Be realistic
• Make contact

Missed Payments

Ideally you should make contact before missing a payment. Missed payment without prior arrangement are likely to attract administration charges which will only add to your financial difficulties.

If you do miss a payment you should make contact as soon as possible to discuss your options. Under no circumstances ignore correspondence from your mortgage company. A lack of response will only force your mortgage into a position where they have no option but to take matters further.

• Explain your situation
• Discuss your options
• Don’t ignore correspondence

Court Proceedings

If proceedings are issued this is not the end of the story. It’s not too late to contact your mortgage company to work out a solution. You can also explain your situation to the judge who has a range options available to him, such as adjourning the claim or allowing you to stay in your property on certain conditions as to repayment of arrears.

Attending court can seem scary but you can take general advice from the Citizens Advice Bureau or can instruct a solicitor. You should ideally take advice before the hearing, but if you are unable to do so there may also be a duty solicitor available at the court on the day.

It’s worth remembering that an possession order is a last resort and that judges are keen to find a solution which enables you to stay in your home. If you attend court the Judge is more likely to be sympathetic and you can explain your situation enabling the Judge to help you.

• Keep talking
• Take advice
• Respond to and attend the Court

The moral of the story is that it is never too late. Don’t bury your head in the sand. Take action!

For more information or advice please contact Anna Manning or Anna Phillips  

Published 20/02/2008. The author of this article is Anna Manning