Repossession of your home is one of the most traumatic events that can
happen in anyone's lifetime. The build up to repossession is a stressful and
worrying time. Unfortunately many homeowners who face the prospect of
repossession seem to adopt the ostrich approach and bury their head in the
sand. Trying to avoid dealing with the mounting problems in the forlorn hope
that they will go away is the worst thing you can do.
The sad aspect of
all of this is although there are a few people who contract debts knowing
they will never pay them off most people are basically honest. The reasons
for their problems are often outside of their control such as redundancy,
illness, unexpected increases in expenditure or a severe change in
circumstances.
There are other factors such as a change in family circumstances ,
divorce or an unexpected increase in the interest rates on your mortgage.
This is particularly true for those who take out a mortgage that begins with
low rate of interest in the beginning but is raised after 2 or 5 years.
The lenders and their agents must also accept some responsibility for
many people's problems. Many house purchasers have been ill advised by
"experts" who had a financial interest in selling them a mortgage.
In the current financial climate homeowners who have for years made their
regular mortgage payments now find that they can no longer meet the monthly
charges. Whatever the reason for this it is important that you do not just
ignore the situation. Placing bills and unopened demands in a drawer hoping
they will just go away does not work. It is important that if you find
yourself in this position to face it head on.
People who find themselves in financial trouble often have little idea of
how bad the situation is becoming. Many do not know exactly how much money
they owe or how much they need each month to meet their commitments. As soon
as you realize they may be getting into trouble you should sit down and list
all your financial commitments and assets. Just by doing this you put
yourself in a much better position to work out a solution.
Mortgage lenders do not want to repossess your home they would far rather
you continued to pay and retain your home. So armed with the fact you are in
a good possession to negotiate with your lender. Most building societies and
Banks would prefer to work out some sort of payment schedule so that you can
keep your house and they will be able to get their payments.
Honesty is the best policy when dealing with your mortgage company. If
you explain the situation and its causes they are more likely to respond
favourably. If you can show that you have drawn up a realistic financial
plan the lenders are less likely to file a Notice of Default or commence
legal action to get possession of your house.
By getting back control of your finances and talking to your mortgage
company is an important first stage. If you request time to make up the
payments that you have missed you will have made an important step towards
avoiding repossession.
The Citizens Advice Bureau have advisors that will talk you through your
options. To find out your nearest branch visit the website at
www.citizensadvice.org.uk
