Monday, 3 August 2009

10 tips to avoid house repossession

posted by debts.org at 23:51

1. Mortgage arrears and serious debt problems

Millions of people in the UK are facing serious debt problems, mortgage arrears and even home repossession. If you ignore the bank statements and the letters from mortgage lenders, your debt problems will get worse. You will find a debt solution if you make the effort to contact a debt advice company. You can get out of debt at little or no cost in the UK today, and there are several options available to you if you are suffering minor or serious debt problems.

2. Check all mortgage paperwork

Take the time to sit down and go through every bit of paperwork you have relating to your mortgage. Read the small print so that you thoroughly understand the terms and conditions and check when you will be in danger of house repossession if your mortgage is in arrears.

3. Address your mortgage arrears

Once you understand the seriousness of your mortgage arrears, you can take steps to get debt advice or debt help in the UK. Don´t bury your head in the sand but make sure you understand the extent of your mortgage debt problem before contacting a debt advice company who will help you and give you free guidance.

4. Monthly mortgage payment debt

Find out how much you are expected to pay monthly, when this is likely to change, whether it has gone up recently and whether it is likely to go up when your mortgage is next reviewed.

5. Be honest with yourself

Be honest with yourself and with your lender to avoid more mortgage arrears and debt problems. Can you continue paying your current monthly payment? Can you afford it over the next few months, and more importantly, if your mortgage increases again, can you manage the payments?

6. Show commitment and willing to your mortgage lender

Check how many payments you have missed. If your mortgage arrears are the result of unemployment, redundancy or a short-term debt problem which may be resolved in a couple of months, contact your mortgage lender and explain this. If you have mortgage arrears and debt problems which are likely to change for the better, offer to pay your missed payments back over
6 months. Take the bull by the horns and contact your lender before he starts to add interest and costs to any mortgage arrears. Any arrangement you make to clear your mortgage debt, you must stick to – so make sure it is achievable before offering to pay off the amount you owe.

7. Mortgage is a priority payment

Understand that paying your mortgage is a priority payment. A mortgage loan is secured against your home, which means if you fail to keep up the mortgage repayments, you could face house repossession. If you are also struggling with credit card debts, store card debts or bank loan debts, pay your mortgage before paying unsecured debts.

8. Work out your total debts and take advice

Work out how much your total debts amount to. Include everything in your calculations including charges, late payment fees, court costs. Pay the arrears back as soon as you possibly can. Consider selling household goods, cashing in an insurance policy, selling a car or caravan, or even taking a part-time job in the evenings to clear your mortgage debt.

9. Going to court for mortgage debts

If your lender is taking you to court, write down your side of the case, to present to the judge on the day of the court case. Put down concrete proposals which are manageable and outline how much you can pay back each month to clear your mortgage arrears. Put your case across clearly to the judge, and there is every chance that your house will not be repossessed.

10. Repayment mortgage debts

If you are struggling to pay back a repayment mortgage, where you will pay back the amount you borrowed plus interest, ask your lender if he can arrange an interest free mortgage for 6 months, which should give you some breathing space. This will make your payments less for that amount of time. Lenders will treat you much more sympathetically if you make a sensible suggestion for repayment, before they start to threaten you with court action or house repossession.

Debts.org helps people to get out of debt, and gives free debt advice, arranges Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs) and can even reclaim unfair bank charges or mis-sold payment protection insurance in Liverpool, Luton, Newcastle, Stoke, Colchester, Oldham, Burnley, Manchester, St.Helens, Crawley, Blackburn, Sutton Coldfield, Eastbourne, Portsmouth, Northampton, Brighton, Stockport, Poole, Oxford, Middlesbrough, Bolton, Ipswich, York, Telford, Rotherham, Dewsbury, Huddersfield, Sheffield, Bristol, Hull, Nottingham and every other town and city in the UK. Call our free debts advice helpline on 0844 277 7999 or fill in the online form.

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