Are you in danger of facing home repossession? This is a difficult thing for any homeowner to face, but it’s important not to lose hope. There are practical ways to avoid house repossession and keep your credit from being ruined. Here are a few things you can do to keep your home from being repossessed by your mortgage lender:
HOW TO AVOID HOME REPOSSESSION
1. Be Prepared Ahead of Time
If repossession is imminent, this tip won’t help you, but for anyone who is trying to plan ahead on how to avoid the situation entirely it might be wise to pay attention. If you pay extra early on during your mortgage you may be able to get away with paying less than required on some payments later on if necessary. While things are good for you financially you should consider giving yourself a buffer with your mortgage loan, just in case your situation gets worse down the road.
2. Check Available Benefits
In the UK, there are certain benefits you can apply for in desperate situations. These include things like mortgage repayment insurance, which could give you the break you need while you search for money to pay to your lender. Pay close attention to the benefits you may be entitled to and what kind of limits they have, because they could mean the difference between keeping your home and losing it.
3. Seek Out Legal Advice
One of the most important things you can do to avoid repossession is to seek out the help of someone who is knowledgeable in the legal processes involved with repossessing a home. If you cannot afford this service, check for legal aid that you might be eligible for or search for free legal advice on the matter. Some free advice can be found online.
4. Contact a Property Buyer
Some companies are willing to purchase your home for a lower price and rent it back to you. While it will stop the repossession, you should be warned that there might be a serious catch in taking an action like this. You might think there will be guaranteed rent agreements involved, but that is not always the case. Be careful not to make any assumptions about your role as the tenant in this scenario. You will no longer own the property and are not entitled to any special treatment, meaning you will be subject to whatever the owner decides.
5. Sell Your Property
What’s worse: Losing your home and your credit or selling your house quickly and moving? While moving and selling your home, probably for less than it’s worth, is not an attractive option it may be your only option in desperate times. This will not only stop a repossession but will also help to save your credit score so you can buy or rent another property to replace the home you sold. Make sure you sell the home for enough money to cover the cost of the rest of the mortgage debt or else you could be stuck paying off your lender for a property you don’t own anymore.
6. Contact Your Mortgage Lender
When you start feeling pressed about your mortgage payments each month, it’s a good idea to get in touch with your lender to see what kind of advice they can give. Remember that they want you to be able to pay them back fully, so they may be willing to work with you to create a better repayment plan.
7. Don’t Ignore the Issue
Take action before you get buried in letters of arrears! Whatever you decide to do, make sure you start doing it before you get to a very desperate place. You will have a much better position to bargain from if you have been communicating with your lender throughout the entire process. Solving the issue early on could save you from a lot of worry and stress and will keep your mortgage lender from having to involve an outside entity to deal with your refusal to pay.
Home repossessions are never easy for the families involved, but before it happens there are still ways you can stop the process altogether. Taking any of these steps could be vital to keeping your home and maintaining good relations with your mortgage lender. Don’t wait until you’re buried in debt to think about repossession, take steps now to keep it from happening to you. If the lender does come knocking on your door in the future, remember that you always have options available to avoid repossession!