Every year around 100,000 families in the UK lose their homes to missed mortgage repayments. Repossession property proceedings can begin with just a couple of missed payments and home repossession can be avoided by selling your house quickly to create a peace of a mind. We have summarised the repossession process below, explaining how it works and more importantly, how you can protect your family from the threat of losing your home.
As soon as you fail to make a mortgage repayment, your mortgage account falls into arrears. Your lender will initially contact you by telephone or letter to pursue this matter, and if you are unable to pay or continue to miss subsequent repayment demands, they have the right to start property repossession proceedings against you.
You will ordinarily be given the option to work out an affordable 'payment arrangement' with your creditor, in order to clear outstanding arrears over a period of time. However, should your mortgage account be in arrears for between 3-6 months without any attempt on your part to clear the outstanding debt, your lender is likely to take legal action; their solicitor will contact you by letter demanding you pay the mortgage arrears in full within a set period of time. If no settlement is received, repossession proceedings will commence.
Proceedings will be issued through the County Court by your lender's solicitors. A date will be set for your hearing and you will be informed of the aforementioned date by letter. Your case will be heard and a judgement issued by the court; the verdict will depend on whether or not your mortgage lender has sufficient evidence that you are unable to pay your arrears.
If this is the case, then the court will issue a property repossession order, habitually stating that the lender has the right to repossess your home after 28 days should no payment settlement be reached.
If you remain in your property after the said 28 days, and have not repaid your arrears, your lender will apply for an eviction order forcing you to leave your home with immediate effect.
Falling into arrears on your mortgage is the first indication that you are on a slippery slope towards repossession. There are a number of ways to prevent action taken against eviction. Sell and rent back is one way of doing so and you can sell your house and rent it back in order to release cash to settle your mortgage arrears, and perhaps other outstanding debts that you have. You don't have to move house and the sale won't cost you any fees.
The process is quite simple. In the first instance you will need to agree with us on how much your property is worth. We also work with you to come up with a schedule of flexible and affordable rental repayments so you can remain in your home once we have bought your property.
Providing that you have equity in your home the money received from the sale of your property goes towards paying off your mortgage and any mortgage arrears that you have accrued. The remainder is cash in the bank for you to do with what you please.
Choosing to sell your house and then rent it back can be a difficult decision to make. If you are struggling financially and you know that you won't be able to meet your lender's demands for arrears repayments, a sale and rent back agreement - perhaps with the option to buy back - really is the best option in the long-run.
Contact us to help you prevent repossession and to sell and rent back to clear your mortgage and debt repayments.
Rest assured, none of your details are ever shared with third parties under any circumstances.
I needed a quick house sale due to an unexpected job redundancy and could not risk a lengthy property sale chain. Sell House Fast were professional and able to guarantee me an offer and fast sale within 2 weeks. I would recommend them to anyone in a similar situation.
Mr Jay, Chester