Owning a house is a major achievement for many people as it may represent years of sacrifice and hard work. That’s why losing it can be a devastating experience that may affect you emotionally and financially.
House repossession may happen if you fail to make your mortgage repayments or you fail to pay back the loans you took out in order to acquire your property. Fortunately, there are many ways to prevent it from happening, and those include the following:
1. Consider A Fast House Sale
If you can’t clear your arrears or pay your mortgage, you can stop house repossession by considering a quick house sale.
Even if lenders give you enough time to sell your house, you might be worried that you won’t be able to find a buyer because of some circumstances, such as your property’s condition and a bad market. Fortunately, you don’t have to think about such matters if you opt for a cash buying service since companies offering it will accommodate you no matter what shape your house is in.
2. Talk To Your Lender
When it comes to house repossession, it’s crucial to talk to your lender as this’ll give you the chance to discuss various matters outside of the court. Your lender must give you time to sell your home or arrange another way for you to pay even if they’re applying to the court for house repossession.
To stop house repossession, ask your lender if it's possible to lessen or extend your payments. If you can prove to your lender that you’ll keep up with repayments under new terms, your lender may consider it. If you go to court, you’ll then have the chance to explain your current situation to a judge. Just make sure to provide enough evidence of your attempts to resolve your house repossession concerns and avoid foreclosing your house.
3. Assess Your Finances
To steer clear of house repossession, you’ll have to repay your mortgage sooner or later. One of the ways to do this is to check your finances. Be sure to examine your budget carefully to cut your debts.
If possible, avoid spending money on non-essentials as doing so can make a difference to your finances and may help you accumulate more savings to repay your mortgage. With that in mind, it’s also wise to look into your expenditures to determine what lifestyle changes to make, cancel unnecessary subscriptions, limit eating out, and so on.
To get the best possible results with your finances, always think that keeping your home is more critical than the cutbacks. Reducing your budget on non-essentials is short term, and you can always spend on the things you like once you’re done with your mortgage repayments.
4. Determine Whether Or Not You Are Eligible For Financial Help
If you’ve experienced a major life change that caused you to struggle financially, you must figure out whether or not you’re eligible to claim any types of benefits given your situation. For instance, if you’ve developed a disability or were involved in an accident that led you to lose wages for several months, you can try getting financial aid from the government. This would help with your mortgage repayments and prevent house repossession.
To learn more about the financial programs available to you, get in touch with your local job center or visit the Social Security office nearest you. Should you end up claiming any type of benefit, don’t forget to inform your lender immediately. If your claim is likely to be approved, your lender won’t start the repossession process.
5. Make A Clear Proposal
Before you respond to requests for arrears payments, you must seek professional help as soon as possible. Ask an expert to assist you in creating a proposal for your lender. It must be a clear document that outlines what you’ll do to repay.
When your lender receives your proposal, they’ll have a few days to get back to you. They may decide to agree with your terms as long as you stick to them. But there are also instances that they might disagree with your proposal and proceed to the repossession process. To avoid any legal action, try discussing things further with your lender.
6. Get Expert Advice
One of the ways to stop house repossession is to get expert advice. Unfortunately, this can be expensive, and if you’re going through financial difficulties, you might not have the budget to spend on financial solicitors or advisors. However, working with an expert is worth your time and effort as it may help you avoid repossession.
Depending on your situation, it’s essential to note that you can get free advice on the house repossession process, including where to turn for help, ways to manage your finances, and how to prevent repossession.
7. Consider Refinancing Your House
Your lender may offer you a repayment holiday, let you switch to another type of home loan, or extend your mortgage. Moreover, if you’re on a standard, expensive, and variable-rate mortgage, switch to a fixed deal mortgage with lower interest. This’ll help you save more money to repay the arrears, which might mean you end up paying less monthly.
Refinancing a home can be complicated. Therefore, you should look for expert advice before deciding whether or not it’d work for you. You also have to speak to qualified mortgage brokers.
8. Rent Your House
A creative solution when faced with house repossession and debt arrears is to rent your house. If you can, stay in cheaper places and rent out your whole house. You can also take on a lodger to live alongside you. This income could cover a certain part of your mortgage repayments.
However, you must only do this with proper legal agreements in place. Once you decide to take this route, you must speak with a financial expert or a letting agent to ensure that you’re not breaking the terms and conditions of your contract. In addition, it’s essential to keep your tenant’s well-being at the forefront.
Stopping house repossession may seem impossible for many homeowners. However, by trying any of the above strategies, you might find a way to keep your house and solve your mortgage concerns. Just always make sure to talk to your lender and never hesitate to get expert advice so you can stay on the right path and stop house repossession successfully.