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Having your home repossessed is an extremely traumatic experience not to mention the effects it can have on your future financial circumstances. There are many reasons why people fall behind with their mortgage payments such as redundancy, divorce or separation, bereavement & ill health. In most cases of repossession the home owners have simply done nothing at all to try & get themselves out of the trouble they find themselves in & have just ignored all letters & calls from their lenders & just hoped the problem would somehow "just go away". The first step you must take to avoid your home being repossessed is to talk to your lender as early as possible when you get into difficulty. Explain your predicament to them and see if there is any way they can help you. The solution may be as simple as giving you a "payment holiday" where they will suspend your payments for a set period whilst you sort out the underlying reasons for your inability to meet your mortgage payments. This will of course depend upon your exact circumstances but one thing is for sure, unless you speak to your lender they cannot help you. Ignoring your lenders letters & calls is a sure way to set them on the course to apply for the repossession of your home. You should also speak to the citizens advice bureau (C.A.B) to see if they can help you, explain your situation to them & they may be able to suggest solutions or put you in touch with someone who can give you free financial advice to help your situation. A good financial advisor will be able to provide you with the steps you need to ease your financial predicament as quickly as possible. You may be thinking that the repossession of your home will end your money worries in that it will relieve you of your mortgage burden. However your lender may try to recover the money you owe them by selling your property quickly at auction. Your property may be sold well below its current value & could still leave a shortfall meaning you will still owe your lender. Another problem of repossession is the effect it has on your future financial situation, years down the line you may be back on your feet & be ready to become a home owner again, however you will find it difficult to get credit from credit or store card companies let alone mortgage providers because you have previously defaulted on an early loan. Any credit you may get will come at a cost in that you will certainly have to pay higher interest rates than those who have a good credit history. A solution to your problem may be to sell your property to a property trader, (as long as you have enough equity) quickly for cash to clear off your debts & prevent repossession. You should get a better price from a property dealer than that which your lender would get selling at auction meaning you will have more cash to pay off your debts. This will also help with your credit history as you will not have defaulted on your loan. Most property traders will also allow you to stay in your property as a tennant, meaning you not only pay off your debts but you also still have a roof over your head. They will also pay your legal fees.
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