Avoid Repossession

  How to Save Your Home - Understanding the Repossession Process

Why Lenders Take Proceedings

Under the terms of your mortgage contract, your lender will have the right to issue proceedings if you do not make your required payments. Normally 2 months arrears is sufficient to enable a lender to take action. In reality, lenders try and avoid taking proceedings and will generally be willing to come to an arrangement to clear the arrears. If the lender has concerns about the level of the arrears, or is not satisfied with your proposals to repay the arrears, they will take possession action in your local County Court. They do this so that they can take control of our property, sell it, and recover the mortgage balance outstanding. The Stages Involved In House - Initially the lender will manage the account within their Arrears Collection Department. They will write letters and perhaps telephone to chase missed payments. It is important to keep your lender informed of your current position and to try to come to an agreement to clear the arrears off over a period of time.

Solicitors  – If the arrears go beyond a certain level (generally 4-6 months +), lenders will refer the account to their Solicitors – the first step will be for the solicitors to write to you demanding full payment and warning that repossession proceedings will result if the account is not brought up to date. Again, make contact with the Solicitors and try to come to an arrangement to make ongoing payments, and to clear the arrears over time.

Being repossessed? Call us today for a confidential chat on 0208 245 4543 or see How To Prepare For Court Hearing

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