WORRIED ABOUT YOUR HOME BEING REPOSSESSED?

Home repossession can be a stressful and distressing experience. If you’re in debt and you’re worried about your home being repossessed, there could be options that you haven’t yet explored. In this blog, we look at some solutions for overcoming property-related debt.

DO YOU HAVE A PROPERTY WITH MORTGAGE DEBT?

If you’re struggling to pay off your mortgage and you have a significant debt, then the first step is to contact your mortgage lender. In some instances, they might be able to offer a plan to help you recover missed mortgage payments. If you don’t contact your mortgage lender, there’s a real risk that you will end up in court. It’s also worth talking to a debt charity like StepChange, who can offer advice and help you create a debt plan.

Depending on the severity of your mortgage debt and financial situation, there will be different options available to you. If you cannot agree a payment plan with your mortgage lender, then they could start court action. You might need to attend a possession hearing.

At a possession hearing, the judge will listen to your case and decide whether you have the financial capacity to keep your home. If the court issues an eviction notice, this will be either an outright possession or suspended possession. With the latter option, you might have to pay a certain amount or follow a set of court terms to keep your home.

HOW TO AVOID HOME REPOSSESSION

There is a lengthy process involved before a home is repossessed, so it’s important not to panic and to consider your options. If you cannot afford the mortgage repayments, you could either sell your home or become a landlord and rent the property out. There are ways to sell a property quickly without involving a costly estate agent.

One solution could be to move out and stay with family or friends, while you rent out your home. This monthly income could cover your mortgage payments and bills until a time when you can afford to return to the property. It’s important to have a debt plan in place and to know your figures before you commit to renting your home. This approach depends on the size of your family and whether you have the opportunity to live elsewhere.

If you’re not keen on renting out your property yourself, then you could consider a rent-to-rent option. Put simply, you would rent your home to a third party, who would then sublet the property. As well as giving you a guaranteed income, you wouldn’t have the stress of finding and managing tenants. Also, any between-tenancy gaps in rental income would be automatically covered by the third party.

If you decide to rent out your home to a third party, you will need to speak to your mortgage lender. It’s unlikely they will say no, especially if you are trying to avoid repossession, but their approval may be needed.

Depending on your property and location, RJJ Developments might be able to buy your home before you are at risk of repossession. We might also be able to manage the property and rent on your behalf. It’s worth exploring your options, so talk to us about your situation.

If you’re worried about your home being repossessed, please get in touch. to see how we can help.

Thank you for reading our latest blog, Worried About Your Home Being Repossessed?

RJJ Development