I Am Facing Foreclosure & Repossession

I Am Facing Foreclosure & Repossession

Repossession (or foreclosure as termed in the US) is a course of action that occurs when you default on our mortgage payments. The lender will take you to court to acquire legal charge over your character in hopes that it will retrieve its finances. If the lender is unable to raise the noticeable finance from a sale (including legal fees that have now been mounted onto your account) you will nevertheless be pursued by the lenders loan insurers to pay the noticeable balance on top of now being homeless with an negative credit rating – making future applications for finance very difficult and much more expensive to acquire (due to the credit risk you are now perceived as).Let us define further the steps that rule up to a complete repossession of your premises.

The foreclosure / repossession course of action:


A borrower missed a due payment. This is now a breach of the contracted agreement which grants the lender discretion to take the matter to the applicable authority for e.g. the courts.


You will begin to receive due payment reminders in the post and possibly phone calls from your lender. This is another precious opportunity to come to an arrangement with your lender to settle your noticeable arrears and save your mortgage account.


If the accounts are nevertheless unsettled then you will receive letters from a legal firm or appointed solicitor in the interest of the lender. There is usually nevertheless some leeway for negotiations at this stage however the incurred solicitors fees will now be mounted on to your account. Any additional charge to your mortgage may not seem a great deal at first but years down the line this increase in capital owed will compound in interest over time.


If you have failed to come to any sort of negotiation with the appointed solicitor or legal firm then they will resort to a Court Summons being issued against you. This is a an official order from the court asking you to attend a court proceeding.


Provided you turn up a estimate will begin examining your circumstances and probing into why you have built up arrears on your account. At this point the estimate is your best hope for recovering your character. If your circumstance has truly been unfortunate and dire, and your attempts to make the lender aware and of this in addition as come to some arrangement has been sincere and genuine the estimate may suspend the Order of Repossession over the character for a fleeting period of time. This is only when the borrower can prove that within a given time they can get back onto there feet.


After a successful Order of Repossession you will then be faced with an Eviction Order from the court. At this point the game is well and truly over. You will also receive a document that will state the exact time and date you will have to have vacated the character by. Police and an appointed bailiff and locksmith from the court will turn up at the same time to have the locks of the character changed. Any contents and possessions nevertheless in the character will be confiscated until you contact the bailiffs to retrieve the items.

So what are my options?

The best advice is that at the first sign of not being able to make ends meet is that you should either begin forecasting your financial situation yourself or get a financial advisor to do it. If you are truly stuck and cannot produce the mortgage payment for the month due CONTACT THE LENDER AS EARLY POSSIBLE.Not only can they help you – but believe it or not they want to help you. No party prospers when a home is repossessed and already though there are banking systems in place to hedge or insure the lender of any possible losses the likelihood that you could claim bankruptcy after losing your home and being faced with a shortfall is high.If contact is made early enough with the lender and your situation is outlined a plan can be arranged. Sometimes your mortgage is temporarily switched into an interest only mortgage. Another outcome is that the lender may grant you a payment holiday but with this the due payment is deferred to the end of the mortgage life span gathering compounded interest along the way.

There are also free charitable organisations who receive government subsidies to give free advice to those facing repossession of there real estate. Organisations such as the Citizens Advice Bureau or National Debt Line dispense such information and legal advice freely.

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