Stopping repossession of your house – steps to consider

What is home repossession?

Home repossession is the formal process through which your mortgage lender starts the legal steps necessary to take over ownership of your home because you have missed payments. The terms of repossession and how it works will be detailed in your mortgage agreement, so be sure you fully understand them before you sign this legally binding document.

It’s believed that roughly 100,000 homeowners face the potential for losing ownership of their homes through repossession every year, although many of these could be prevented through a series of steps if people were aware of all the options open to them. This guide covers some of the steps you could consider, however it is important to take professional advice too if the need arises.

Steps to consider when you’re facing the threat of home repossession

Thankfully home repossessions can sometimes be avoided, although not always. If you are facing the risk of losing your home ownership, consider some of the options open to you.

Get in touch with your mortgage lender

The first thing you should do is call your mortgage lender when you have either missed one of your payments or know you are about to miss a payment. Some companies are reasonable and will negotiate with you on options for clearing the date through a repayment plan. It’s recommended that you reach out to your lender as soon as possible, because striking a deal with them will be harder the later you leave it.

Hire a solicitor to discuss your options

Although you may have limited financial resources, you should consider hiring a solicitor to discuss your options for avoiding home repossession. If you can afford one, they can talk you through possible steps including ways to fight the repossession in court. And even if you can’t afford a solicitor, the UK government’s website has details on how you might qualify for free legal aid to discuss your problem.

See whether you are eligible for financial benefits

If you are having severe financial problems that have led to the missed payments resulting in the threat of repossession, consult with benefits agencies to see whether you qualify for any funding assistance. Although the amount of money that you could be eligible for might not cover the cost of the missing mortgage payments, it may still offer some much-needed help as you put together a plan to retain your home.

You might be able to win a court fight over the repossession

Before a mortgage lender can take possession of your home, they need to get approval from a court. Tell the court about your specific plan for catching up with the missed payments and how you intend to get back into good standing.

Consider selling your home as a way to clear your debts

While you are still the owner of your home, you usually have the option to try selling it. The total proceeds that you might make from the sale could cover the rest of the mortgage, the missing payments as well as any fees that you’ve incurred with your lender, and still leave you with money left over. It’s not a perfect option but it can be a quick and simple way to get back on a solid financial track. And even if you property is one that currently has tenants, you still have options for selling it to help clear your debts.