Missed Mortgage Payments? You May Be in Danger of Repossession

If you have missed a number of mortgage payments, you may be in danger of having your home repossessed. A repossessed property doesn’t signal the end of the world though. Act quickly, and you may be able to prevent the lender from taking your property.

How to Stop Repossession of Your Home

If you have fallen behind with your mortgage payments, do not ignore the issue! Write to the letter and explain why you are behind with your payments, and that you are seeking advice to get back on track. Pay as much as you can to clear the arrears, and speak to an advisor immediately.

Keeping the lender informed of your situation could help slow the repossession.

If you have payment protection insurance on your mortgage, then this may cover payments if you are ill, or have been made redundant.  If your income has fallen, but you do still have money coming in, you might be able to extend your mortgage or change the terms.  It is easier to do this if you are not yet in arrears, but as long as possession proceedings have not been started, the lender should be willing to work with you.

What to Do If The Court Actions Have Already Started

Even if your mortgage lender has already been to court and taken an order out on your home, Principal Homebuyers may be able to help you. You can sell the property in question to us which will allow you to clear your mortgage debt, and then live in your house as a tenant. This means that you are in control of the sale, and the price. If your mortgage lender decides to sell your home for less than it is worth, or you were in negative equity at the time of the sale then you will still be in debt and have nowhere to live.

It is better to sell your home to an investor like Principal Homebuyers rather than letting the lender or an estate agent sell the property, because you will not be hit with court fees or legal costs which will eat into the proceeds from the sale. This is your best chance at getting rid of your debt. If you have lived in the home a long time, and are not in negative equity, then the proceeds from the sale could act as a valuable buffer to help you get your finances on track.

If you stay in the property as a tenant after selling your home, note that it will be much harder for you to claim housing benefit on a home you previously owned. However, if you are faced with a choice of voluntary repossession or eviction, you should seek advice and consider a sale.

Act Now to Solve Your Mortgage Problems

At Principal Homebuyers, we have more than 20 years of experience with buying real estate, and we will work with you directly and discretely to help you solve your mortgage problems.

The sooner you act, the easier it will be to avoid losing your home and ending up deeper in debt. Call us today for impartial advice.