Avoiding Repossession

Figures from the Council of Mortgage Lenders (CML) show that home repossessions hit a 14-year high during 2009. However many of these repossessions could have been avoided and by taking action today you may be able to stop legal action and save you home.

Even if a repossession order has been received there is still enough time to turn the situation around and at Debt Trust UK we can help. Our priority is always to keep to you in your home and by rescheduling your debt we make mortgage (or rent) payments central. By reducing payments on your unsecured debt we can prove that you are now financially stable and capable of staying in the property.

If you have missed a mortgage payment or have received a repossession notice then here are some useful tips:

Don’t ignore letters and calls. Most lenders are approachable and are now obliged to listen to your problems and suggest solutions. On 22nd October 2008 the government strengthened your position by amending the pre-action protocol. This means that repossession should always be the last resort.
Prioritise your debts. Whilst credit card and loan companies may ‘shout the loudest’ they should not be the first people you pay. Concentrate on paying your mortgage (or rent) and if necessary offer other creditors token payments. This can be as little as £1 a month but should stop any harassment and protect you from legal action.
Look closely at your budget…are there savings that can be made? Speak to your utility companies and see if you qualify for their reduced payment schemes or trust funds. Maybe you could cancel your satellite TV package or a gym subscription you rarely use. At Debt trust UK we specialise in working out affordable budget plans so please get in touch, before it is too late.
Try to increase your income. Contact your local benefits office to make sure you are receiving all the support you are entitled to. Perhaps you could take a second job or work extra hours. Many people choose to rent out a room and if you live near a university or college this can be fairly easy to do.

One option which has become increasingly popular over recent years is ‘Sell & Rent’. Lots of companies have appeared that will buy you property for cash so that you can avoid repossession. This should always be a last resort as whilst it could allow you to remain in your home (and pay rent) your long term future is not secure.

The price you receive for your property is also vastly reduced. At Debt Trust UK we could be able to find an alternative and a less drastic way to avoid repossession.

Can You Avoid Repossession?
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