Top 10 tips to Stop repossession
To stop repossession it’s important to stay focused on what is most important. If you’re struggling with your mortgage repayments there are a number of things you can do to avoid repossession.
Speak to your lender as soon as possible to explain your situation.
See if your lender will allow you to:
take a temporary payment holiday
add your arrears to your mortgage loan, this is known as capitalizing your arrears
pay off your arrears in installments.
Your lender may agree to extend your mortgage term – this will allow you to make your payments over a longer period of time and will reduce your monthly repayments. But it will also increase the amount you have to repay in the long-run
Rent out the property.
Sell the property.
Change your type of mortgage.
Turn up to court as you may still have some hope to save your home
Don’t simply hand in the keys. This will not solve your financial problems, you will still be liable for the mortgage until your home has been sold, or any shortfall repaid
See if you are entitled to any benefits which may help you, such as support for mortgage interest. Avoid borrowing more money if you can, as this may only make your problems worse
Get legal advice – make sure that you seek advice well before you have to go to court.
If you have not been able to prepare for your case in advance, a duty advice scheme operates in most courts, where advisers are able to offer you free representation. Make sure you turn up early to court, and bring all relevant documents with you – such as correspondence with your lender, and details of your income, which you will need to show in order to show the court what you can pay.
Also check out more about repossessed properties