Written by Payplan Ryan on 14 April 2011I think that it is safe to say that one of the biggest worries for clients coming to Payplan is the risk of losing their house. If you have a mortgage and you fall into arrears with your payments you risk losing your home and having it repossessed. I want to talk today about how to avoid the risk of repossession and what to do if you are already at risk.
How do I avoid the worry of repossession?It may seem simple, but the easiest way to avoid the worry is to keep up with your mortgage payments. Above all else you need a roof over your head. Credit card and loan companies can sometimes get demanding so it may seem ‘easier’ to pay the credit card than the mortgage because you feel you’re getting less hassle in the long run. If you know you are going to miss a mortgage payment or have already missed a mortgage payment then it is generally accepted that the relationship between yourselves and your lender is best served by you making early contact with your mortgage company, to explain your situation
I have already fallen behind with my mortgage and they are now seeking repossession, what do I do?If you have already fallen behind with your mortgage payments and it is too late to do anything, then your mortgage company may then seek to repossess your home. The first step towards repossession is that you will receive notification through the post. You will be sent a claim form, which you have 14 days to respond to and this gives you the chance to explain your circumstances and try and resolve the situation. If this is unsuccessful, the Lender will apply, through the County Court, for a Repossession Order.
You will receive a summons to attend a County Court hearing, and whilst this may appear daunting to you, it will always be in your best interest to attend, and it gives you the opportunity to put your case forward yet again, this time to a judge directly. The County Court Judge will try to be helpful to you, and do everything possible to ensure that you have every opportunity to plead your case.
The Judge will make an immediate decision. If the Lender’s application for the Possession Order is successful, you will have at least 28 days to either to vacate the property, or to appeal the outcome.
If the latter is unsuccessful, the lender may then exercise its legal powers to evict you from your home, and to take steps to sell your property, the proceeds of sale being used to repay the mortgage debt and the Lender’s costs. If you are still unsure about anything call one of our specialists who will always be happy to help
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