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What To Do If You Are Facing Repossession
Don’t panic:
You are not alone. The rising levels of debt, record house prices and increased interest rates are stretching homeowners cash-flow to breaking point. Repossessions are rising everywhere - it only takes one thing to trigger a series of events which can ultimately end in the repossession of a family home. We at Rapid Home Solutions understand that everyone’s situation is unique and that often, through unfortunate circumstances people run in to financial difficulty. We also know that unless quick action is taken, the situation can soon be out of control. That is why we are here to offer a few options and solutions to help give you a way out.
How to stop a repossession:
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Pay off the arrears. Be careful of high-interest crisis loans as although they may help in the short term, you may find they become a very expensive burden in the future. But speak to debt counsellors and Independent Financial Advisors to see if they can help you arrange something.
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Sell your home fast. Find a good Estate Agent and reduce the price of your home to sell it quickly. Be aware that the property market is slow at the moment with many sales falling through. So don’t hold out for the highest price as it may never materialise and you will run-out of time. We can help here buy offering a guaranteed sale – fast.
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Sell your home and rent it back (with buy-back option). You can sell your home to us and then remain in it as a long-term tenant. We offer fair rates and rents much lower than the market standard where possible. There is also the option buy-back once your financial situation improves.
Tips and advice:
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Reply to the court summons: Add as much relevant details as possible including your income and outgoings, your situation and intentions. Keep a copy for your records.
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Talk to your lenders: Lenders are often prepared to agree alternative payment schedules to help you get back on track. Repossession is a hassle for them too and always a last resort.
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Always attend the hearing: If you do not attend the hearing, you cannot explain your situation and the Judge will almost certainly grant a Order for Possession against you.
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What to do in the court: Your case will be heard in a private chamber and the Judge will try to understand your situation by asking you relevant questions. Try to pay the current instalment and outline a future payment schedule to clear the arrears. If the Judge believes that your financial situation is sustainable they will grant a Suspended Order for Possession. You will then be able to stay in your home. This may give you time to catch up with the payments or to find a buyer for your property.
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Possession order or warrant: If you cannot keep up those payments or find a buyer for your home, a Possession Order will be granted followed by a Warrant whereby the Court Bailiffs will set a date for eviction. At this stage, if you can either pay off the arrears or demonstrate to the Judge that you have a buyer for your property, again the Judge may suspend the Order / Warrant.
Repossession is not the end:
Remember that once you hand the keys back and move out of the property – that is not the end of it. You want to stop a repossession if at all possible as you are still liable for the mortgage arrears, legal costs, court costs, bailiffs costs, estate agents fees, locksmith fees and interest etc. The proceeds from the sale of the property will go to clearing the mortgage account. Although any surplus will be paid to you, there is rarely any left over as the property will be heavily discounted in order to sell it quickly. Any shortfall is still your responsibility and lenders have 12 years to chase you for this money. Your Credit Rating will be affected as a County Court Judgment will be lodged against you and remain on the CCJ Register for 6 years. The repossession will also be registered with the Council of Mortgage Lenders so getting a future mortgage will be very difficult.
Remember that unless the bailiffs are
knocking at the door, there is still time.
SUBMIT AN ENQUIRY NOW,
YOU HAVE NOTHING TO LOSE!!
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