Repossession is a scary thing, however you need to deal with it rather than ignore it. If you make sure you deal with repossession in the correct way you will give yourself the best chance of being able to prevent yourself losing your home.
The first thing you need to do if your lender is threatening repossession is to get yourself advice. Do not put this off due to financial concerns, as there are places that you can go for free advice, such as the Citizens Advice Bureau. An advisor will let you know exactly what your mortgage lender must do before they are able to take you to court to repossess your home.
Certain aspects of your mortgage lenders’ obligations give you a chance to act to prevent a repossession occurring. You should ensure that you take advantage of the fact that your lender has to respond to any requests you make to change your payment plan or respond to any offers of payment you make. If you are proactive you are likely to be able to come to a resolution with your lender.
Your lender has to give you 15 days notice if they are going to start court proceedings. If you get this notice, do not despair. This does not mean that your home will definitely be repossessed. You still have a good chance of reaching a solution. If you do reach a solution before the court date you will still have to attend the court hearing to tell the judge about the solution unless your receive a notification that your hearing has been cancelled or postponed.
One option you have is to contact the Mortgage Rescue Scheme. This scheme is intended to help you if you are in danger of your home being repossessed. It offers you options that can help you stay in your home via a loan or via a sale and rent-back agreement. Make sure you look into all of these options if your lender is threatening court action.
The other thing, which is vital you must do if you are in the throes of repossession, is to make sure that you fill out all the paperwork you are sent and return it within the correct deadlines. You also must attend the court hearing on the date specified. If you do not do these things you are significantly increasing the risk of your home being repossessed.
If the judge does end up granting a repossession order there is still a chance that you could buy yourself some time, if you apply for a suspension of a warrant for possession this can delay the eviction date. You may find this helpful if you are searching for alternative accommodation. Alternatively, you may wish to appeal the decision to repossess your home.
Should repossession take place, remember that this is not the end of the world. The UK has a great housing benefit system and if you are homeless your council should be able to find you temporary or permanent accommodation. Your lender will have had to warn your council about your repossession hearing so they will be ready in the case of your eviction.