Friday, 10 July 2009

Houses repossessed

posted by debts.org at 04:31

House repossession help and advice

With over 75,000 houses expected to be repossessed in 2009 in the UK, thousands of homeowners face losing their properties. If you are at risk of losing your home, there are some key pieces of advice to consider:

• Do not ignore warning letters/calls from your lender. The problem will not go away unless you take action. Advice about house repossessions and how to reduce your debts is available from debts.org• Look at all the options and decide whether you can cut back on spending without hardship

• Could you rent out a room or increase your income in any other way?• Are you behind with other loans secured against your home? If repossession of your house is a real possibility, this debt must take priority over other unsecured debts. Debts.org can help you arrange a debt management plan which could save your home from repossession.

• If you feel you can´t make savings, don´t give up hope. The Citizen´s Advice Bureau and the Consumer Counselling

Service will give you sound advice for free

• Trained experts will advise you on the next steps to take and how best to negotiate with your lender. You can also check out their websites for useful information and tips regarding repossession, redundancy and debt problems

• Some lenders will push for repossession, while most will only go down this route when there is no alternative, so be seen to be trying to solve the problem, and stay in touch regularly with your lender. Don´t let your house be repossessed if you can apply for a debt management plan to help your financial situation• The ´Pre-action protocol´ was strengthened recently and states that lenders must explore every avenue before repossessing homes. Lenders must now prove they have done this before repossession takes place, or the case can be thrown out of court

• When talking to your lender be 100% honest about your finances and the amount YOU can afford to pay without suffering hardship. Debts.org can help you arrange a debt management plan

• The lender will be far more helpful if you prove to him you are trying to stave off home repossession and not ignoring the threat

House Repossession and debt management plans

If you choose to ignore your lender, or cannot make payments, they can apply to the county court for a repossession order. If you are worried about repossession, you should contact debts.org when you first start to have difficulties paying your mortgage. We can help you arrange a debt management plan to stave off any threat of house repossession.

Court orders for house repossession in the UK

The lender may write to you before applying for a possession order, but remember there is no legal obligation for them to do so. If you fear your house may be repossessed, contact debts.org as soon as possible. The first contact you receive from your lender could be a court summons, with a hearing date, at least 28 days after the summons date. Even if your lender tells you that you don´t need to appear at court, always appear at court. It is your right to attend court and put your case across. Remember the court, and not the lender, makes a final decision on the possible repossession of your house, and if you can offer a repayment which you can sustain, the judge could decide in your favour.

If your house could be repossessed go to court prepared

Go to court prepared to stand your corner. Explain to the court why you are in the financial situation you are, and why you are struggling to pay your mortgage. You may have been made redundant, suffered ill health or an accident or even lost a loved one who contributed to the family finances. You may be returning to work after an unexpected absence, which will improve future finances. There are a number of reasons why a judge may decide a home repossession case in your favour, and you need to present them clearly. The Citizen´s Advice Bureau or Shelter can help you with preparing paperwork for a repossession court order, but if things have not reached this stage, contact debts.org for advice. If you think you may have problems with home repossession in the near future and are already struggling to pay your mortgage, contact debts.org who will talk you through your options. Don´t let your property become one of the thousands of repossessed houses for sale, take advice and stand up for your rights.

Labels: citizen advice bureau, house sales