Is your home or flat currently under threat of repossession? It's a stressful and frightening scenario, and you may not fully understand what is happening or know what you can do to prevent the bailiffs from arriving at your door. This guide aims to demystify repossession and answer common questions about it.
Most importantly, we'll look at where you can get repossession help and consider what steps you can take to remedy the situation once the repossession process begins. Often, selling your house quickly for cash is the best way to generate enough money to prevent repossession. We can make you an offer within 48 hours, with legal expenses covered and no hidden fees.
So what is house repossession, exactly? In the simplest terms, it is when your mortgage lender gets a judge to provide a court order that evicts you from your home. The lender then takes possession of your property. At this point, if you say "I want to stop my house being repossessed", there's very little you can do to help yourselves besides arranging a quick cash sale.
You might think the above sounds unfair, but think of it like this - when you take out a mortgage so that you can buy a house or a flat, the body lending you the money to make that purchase has a financial involvement with your home. This stake decreases as you pay off more and more of the debt, but if you fail to make the relevant payments then you reach a point at which lenders are entitled to take back full possession of the property. This is often the only way they can recover the necessary money.
Repossession is usually only instigated if you've missed at least three payments in a row, and lenders would always prefer to sort out a repayment plan. However, if they can't do so, then court action begins and bailiffs will arrive at your property to evict you. We'll explain more about how this process works below, as well as how to avoid it and how to use quick cash sales to address the problem.
The house repossession process is a legal course of action that lenders use as a last resort. They only instigate repossession if you can't successfully negotiate a repayment plan, and in order for your house to be repossessed a judge must agree to it in a court of law. It is not something that is undertaken lightly, and lenders would always rather find a different solution.
In many cases, repossession can be avoided by maintaining good communication with your lender. Let them know how your circumstances have changed, explain that you are struggling, and ask them what you can do to make the repayment work. In contrast, if you ignore your lender, you deny them the chance to negotiate an agreement with you and you are highly likely to lose your home. It's tempting to bury your head in the sand and pretend your financial situation isn't as bad as it is, but facing the reality of your situation helps you find a solution.
If you want to stop house repossession, there are a few smart things you can do. For example:
If you approach us and say "I want to sell my house to avoid repossession", we'll talk you through the process and figure out how to meet your needs.
We help you avoid repossession by quickly buying houses for cash. This allows you to immediately acquire a lump sum that can stop the repossession process by paying off your loan or your mortgage. You simply tell us your timescale, and we work to that so that you can keep a roof over your head. Our team of experienced staff members will talk to you without judgment and will happily answer any questions you might have.
When you learn your home is being repossessed, this means that you will have to move out and find another place to stay. You will lose your home, and you will be left with debts if the resale value of your property turns out to be lower than your overall debt. If you want to get a loan or another mortgage, you will also find this more challenging with a repossession on your record.
What happens to your mortgage debt after a property repossession will depend on your specific lender. Ask them about this, and they will explain the situation regarding your arrears. If you choose to use a cash buyer service in order to quickly sell off your home, then you can pay off your debt with part of this money and save the rest for other expenses or investments.
House repossession will always affect your rating as a result of your defaulting on payments. It is possible to improve your credit rating to the point at which you'd be considered for a mortgage in the future, but this requires time and consistent work.
The average is 28 days, though in some cases the repossession process is extended to 56 days. When you receive the relevant court order, it will state the date on which the judge has decided that you will be expected to vacate your home. If the judge makes the decision for your home to be repossessed, a possession order will be issued in response.
We never charge fees and we also cover the fees associated with house valuation. This makes our service much more affordable than using an estate agent, and it keeps the process clean and simple. You know that whatever money you receive after valuation will be yours, without any hidden charges.