If you are struggling to reimburse your mortgage and are a victim of potential home repossession currently, then the first thing you should do is stay away from panicking. Below are 10 simple points which will help you get out of house repossession. Go through these steps for better understanding.
- You need to get in touch with everyone concerned and talk to them, namely your family, mortgage lender and your bank. Also, obtain useful advice from trusted sources. Remember that if you get good advice as well as assistance right from the beginning, it will save your valuable time and will help you afterwards.
- Verify to make sure that you mortgage protection scheme covers you.
- Ask our mortgage provider or lender or the bank whether they are okay with extension of the tenure of the mortgage for a longer time span. This if done with reduce the monthly cost and might also make future repayment more feasible. It is advisable to shift to an interest only mortgage from a capital repayment one. Alternatively, you might also see whether you are able to re-mortgage to a more viable rate so that your money is saved on the repayments that you make every month.
- Another significant thing is that you must not neglect the calls and letters that come from the lenders. If you do so, your situation might become worse later on. In case you are facing a financial crisis, it is best to let your mortgage lender or bank know the same, and you can discuss your present situation with them. You may get some solution from them.
- Rather that reimbursing nothing, it is best to pay the amount that you can afford. This will reveal that you are willing to pay off the mortgage.
- Even if somebody threatens you of court proceedings, so not be afraid. Whenever there are court hearings, attend them yourself. Repossession will be the last thing that the court will opt for, and you will get due help from the court to protect your home from repossession whenever some possibility is there.
- Court proceedings always do not imply that your home will be gone since other options also exist.
- It would not be wise to abandon or leave the property or assume that the problem can be solved by handing over the keys to the lender or bank. In case there is repossession of your house, you will be chased and held liable for the outstanding debt and shortfall once the house has been auctioned. The situation can turn out to be worse and you might land up owing more debt and money than at the beginning.
- If you are able to sell off the house fast enough to reimburse the mortgage and other associated arrears, it might be a quite feasible option. The problem is solved and you would be able to protect your credit file from possible default and damage.
- There are various websites wherein you can ask question regarding your situation and get answers from experts. Moreover you can also take the help of organization which buy home in the form of first cash sale, thereby helping you out in case of a repossession.
