Is your home under threat of repossession?
If you are dealing with house repossession knowing your legal rights will be a key advantage to you.
The full house repossession procedure can be long winded, complicated and undeniably stressful. Usually situated from a set of unfortunate circumstances, a house repossession is a legal ordeal, leaving the homeowner in an incredibly vulnerable position
The basic outline of a House Repossession
If you buy a home using a mortgage, even though you technically own it, your mortgage lender has the final say regarding the financial claim until the agreed mortgage has been cleared.
A repossession then allows the lender (mortgage provider) to take control of the home to generate the money back from the loan. A repossession usually incurs extra fees added to the original amount owed, including legal fees and potential interest or fines from missed payments.
Missing mortgage payments are usually the causing circumstance of a house repossession ruling.
House Repossessions are a very sad, real and worrying situation.
In England and Wales during 2014, 7958 claims were made leading through to a court order of successful house repossession proceedings.
Thankfully this number has decreased a lot since the 2007 financial crisis, but that is still a lot of vulnerable people needing to find somewhere else to live safely and securely.
For more statistical information please click here.
Basic Rules of a House Repossession
According to Shelter, repossession should only happen as a last resort and can only legally be enforced if your lender follows the correct legal process.
Find out more about the correct lender protocol here.
Before this protocol can start, the lender must work with you (as part of the rules) to try and come to some agreement on payment options. At this point you must communicate and cooperate with your lender, be very clear and honest about what you can and cannot afford.
The objective of this part of the protocol is to come to an agreement covering any arrears and negotiating an affordable way for you to repay your mortgage.
Helpful Facts when dealing with a House Repossession
The government has implemented a 3 month moratorium, giving borrowers a 3 month window to aid attempt of sorting out the situation before the repossession proceedings start.
Royal Bank Of Scotland has announced that it will give its lenders 6 months before any action is taken on a House Repossession.
Given the time it normally takes to validate, prepare a case study, involve legal bodies and actually proceed with the protocol activity there is normally around a 9 month window before anyone is forced out of their home and declared ‘homeless’. This allows a period of time in which alternative solutions can be considered.
On an annual basis, it costs the U.K government a lot of money to resituate and rehouse those deemed homeless and as a result of this the government has extended the range of benefits and initiatives with the objective of keeping people within their homes.
If you are ever in a situation where you may be declared as homeless, seek advise, consider alternative options and don’t be afraid to ask for help.