Repossession

What is repossession?

Repossession is the name given to the process of a lender taking ownership of your property because you have defaulted on your mortgage payments. Repossession is considered as a last resort in trying to solve the problem. The lender needs to explore other options with you to try and help you find a way to afford your mortgage, keep your home and repay the mortgage arrears.

If a lender does want to repossess your home they must do so through the courts.

Behind on rent and mortgage payments?

If you are having difficulty paying your rent or mortgage payments you may be facing repossession; the thought of which can be a very terrifying experience.

How will I know if my home is going to be repossessed?

Usually you will find out if your lender or landlord is taking action against you by getting some sort of notification by post; usually a claim form. Along with the claim form you will receive a form of defense, also known as a N11M. You should complete this within 14 days.

How can I avoid repossession?

In todays economy 'repossession' is a familiar word. People struggling with their debts, living expenses, mortgages, rent and other financial commitments are all concerned about repossession. The earlier you tackle the problem the better chance you have of avoiding repossession. There are several options you can look at in order to avoid repossession and get back on track with your mortgage payments..

• Reduce your monthly payments
  • If your financial problems are short term, your lender may negotiate reduced payments for a limtied period of time, which may help you get back on your feet. If you see no sign of your debt problems clearing up in the near future perhaps you may need something more long-term, such as re-mortgaging or selling and moving to somewhere less expensive.
• Generate More Income
  • You could look into ways of increasing your income each month which will help you with your debts. Make sure you are getting all benefit entitlements that you are elligible for, claim on your mortgage ins protection, get a lodger in or rent a room, do overtime at work, get a second job.
• Draw up a Debt Management Plan
  • By entering into a Debt Management Plan with your creditors, you will be negotiating a more manageable monthly debt repayment for your unsecured debts which will free up income for priority bills and your secured debts, such as your mortgage.
• Look into an IVA
  • An IVA is a formal solution that will put your mortgage payments as a priority expense and allow you to pay lower monthly payments towards your unsecured debts.

If you are worried about losing your home, get in touch as soon as possible for some help and advice. Fill in the form on this page or call freephone 0800 043 5133. All of our debt advice is free and confidential.