Threat of repossession?
If you are behind with your mortgage payments or if you have been issued with a repossession order,
it is time to act and take serious steps in order to save your home or get yourself a fast sale. With a fast sale you
can make a fresh start by paying off your arrears, cancelling the repossession order, and removing the impending risk of eviction
and having your property repossessed.
What we offer
By selling to us you will not have to deal with estate agents. Our offer is virtually a sale, if you accept our offer.
It is immediate and you are in control, as all our dealings are on mutual agreement with no pressure whatsoever on the you,
the vendor.
You in control
We buy your property outright or take an Option with a mutually agreed time and price for you to rent and buy-back your
home We can work with you to a timescale and date of completion. If you need to raise finance fast,
we can complete within days. We can also delay completion suit your moving schedule. Also if your circumstances were rather
sudden and overwhelming, you might not be in the right frame of mind to have considered all aspects, such as selling and moving
in such a short period of time. Then we would purchase an Option on your property, settle mortgage arrears and other pressing
debts up to the completion of the sale.
Repossession
Repossession makes you homeless
(you will be evicted) if you fall behind with your mortgage repayments ("in arrears"). If you don’t, pay your arrears or agree a settlement
with your lenders, they will seek possession of your home. The lender starts legal action through the courts to have you evicted
and gain repossession of your home.
On eviction your lender is
then free to sell the property to repay the balance of the mortgage & costs. However if there is any shortfall resulting
from the sale, you could be pursued for up to 12 years for the outstanding debt in England and Wales and Scotland can be 5
to 20 years.
If you have reason to believe
you are facing repossession you need to take some steps to help yourself.
Communicate with your lender. Find out how much you owe including
arrears and any settlement charges if you were to sell. Seek legal advice. Try to agree an arrangement for paying off your arrears.
The average time it took for legal action in the UK to start was six months but this is likely to get shorter.
The number of repossessions in the UK has risen sharply in the
last year and an upward trend is expected. With a mix of mortgages and additional secure and unsecured debts, lenders are
becoming nervous and acting accordingly.
It is crucial to remember
if you do not keep up with your mortgage repayments, eventually the property will be repossessed.
If you get into difficulty
with repayments then you should seek advice to stop repossession.
Citizens Advice Bureau or
Credit Counseling a good start and to introduce you to other agencies that will help you provide advice on debt management,
legal aspects.
Letters form the Lender
The lender will write you
a letter stating that your payments are in arrears. It will usually ask you to either bring the arrears up to date or contact
them to discuss the situation. If you choose to ignore them then they will write you again. Failing a response from you, they
will instruct their solicitors.
Letters from Lender’s Solicitor
The lenders solicitors will
generally give you about one to two weeks to pay the arrears before they start court action proceedings. You are more likely
to get a sympathetic ear from the courts if you have made an effort to pay off the debt or made strives to solve your debt
problem.
It is imperative you contact
someone to solve your debt problem or get a fast sale for your property so that you can pay off the debt, before it is too late.
Property Repossession Order
As noted above, lenders or
courts do not want to go down the route of evicting you from your property. Many lenders are sympathetic and open to suggestions
on how the loan can be paid back. It may even mean that the payments are reduced for the time being till your situation changes.
If you are honest with them at earlier stages, then this will help establish trust with your lender.
Some lenders are open to
suggestions on how the loan can be paid back. Either you or your financial adviser if you have one may negotiate a repayments
reduction for the time being till your situation changes. If you are honest with the lenders at earlier stages, this trust
with them may help you later.
If you ignore letters or
other communication then eventually you will be served with a county court claim.
The order is a confirmation
that legal proceedings to repossess your property have begun.
At the hearings the lender will the notify the judge that your arrears constitute a breach of contract between
you and the lender and
the lender is entitled to recover his money, asking the judge’s permission to repossess the property.
If the judge agrees, lender
will be granted possession of the property. Next steps are; a) Bailiffs will be instructed to evict you from the property
at a date set by the courts, b) Lender will sell the property to recover the money.
Note: If lender does not recover all its money, including expenses i.e., legal and administration costs, bailiff
costs etc, you will still remain personally liable to the lender for any subsequent claims.
Our advice is: seek advice
and help before it is too late. Your ultimate goal should be to protect and keep your major asset (your home). If you are
not successful arranging the financial help, try not to get to the stage where the property is about to be repossessed. Sell it (to us preferably). That will help protect your credit reputation and record for future dealings. Some companies even allow you to sell
and buy back at a future date at a pre-agreed price should you wish to.
- Seek advice and help.
- Aim to keep the property.
- Try not to get to the stage where your property is repossessed.
- If time allows sell it yourself and repay your mortgage.
- If time is short then selling it to us may be the answer.
- That will help protect your credit record for the future.
- Do not ignore letters from the lender.
- Do not ignore letters from the lender’s solicitors.
- If in doubt, talk to someone.
- Ask for help.
- Don’t leave it too late.
- You may call us now 020 8863 3773
