How many months mortgage arrears before repossession
This article is about how many months mortgage arrears before repossession. Having any personal property repossessed is degrading and stressful. But having your home repossessed has got to be the worst thing that could happen to anyone.
Having bailiffs turn up at your house is both scary and intimidating. Being thrown out of your home is humiliating and something that has to be the worst thing that could happen to any person. So avoiding repossession has got to be a top priority for anyone who is in arrears on their mortgage.
Healthy property market in Dorset and Hampshire…
Despite having a healthy property market in and around Dorset and Hampshire, there are still repossessions happening in the area. Repossessions happen for any manor of reasons, but it is a last resort for the banks to do it…so it’s never too late to take control and to seek help.
If you are struggling with your mortgage and if you are in arrears on your mortgage, then this article is aimed at you.
So how many months mortgage arrears before repossession?
When you take out a mortgage, there’s the well-known phrase which says “Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.”
There is another phrase on recommended FCA documents, which reads “YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.”
At the outset, when the mortgage is taken out, no one intends to go into arrears. Circumstances happen…redundancy, divorce, sickness like cancer, and many other reasons which give rise to a lack of money. This lack on money at the end of the month may mean that the mortgage or other loan secured on your home may not get paid.
Warning: “Your home may be repossessed if you do not keep up repayments on your mortgage.”
Where a loan or mortgage is not paid on time each month, then you end up going into arrears. Having arrears does mean that your home could be repossessed by the bank or other lender. But how many months mortgage arrears before repossession?
The fear of repossession after going into arrears…
Most home owners will have a mortgage outstanding on their home. This means that the bank effectively own a part of your property, until such time as it is repaid in full.
So arguably, it is the mortgage that keeps the roof over our heads…and it’s about keeping the bank happy by keeping up with repayments, therefore avoiding repossession.
Banks don’t want to repossess your home…
However, most banks don’t want to repossess, they’d prefer you to repay. The regulators, like the FCA expect the banks to work with you to try and make that happen.
However, if in the end you can’t afford to pay your mortgage, on top of which you don’t communicate with your lender, they will take your home away quite quickly.
Banks don’t like to repossess…repossession is a last resort for lenders.
It will depend on the bank and on your circumstances on how many months mortgage arrears before repossession. Try to at least pay something, as this will help to keep the mortgage company happy.
You can speak with a number of organisations, which includes Step Change Charity for help and advice on your mortgage if it is in arrears.
There are rules that banks have to follow before repossession takes place…
Repossession rules mortgage lenders must follow…
Before taking you to court to repossess your home, your mortgage lender must follow pre-action protocol rules. In order to repossess your home, your lender must take you to court where you have mortgage arrears.
The pre-action protocol rules means that your lender can only take you to court as a last resort. This is after all other options haven’t worked.
At the very least, your lender must treat you fairly, but above all your lender must consider any proposals you make for repaying mortgage arrears.
Any communication from your lender should be easy to understand. But you must make sure you respond within a reasonable time-frame…don’t stick your head in the sand.
You may wish to look into Support for Mortgage Interest (SMI), as a lender cannot commence court proceedings of a repossession when you’ve applied for Support for Mortgage Interest (SMI).
Help at hand if you are worried about how many months mortgage arrears before repossession…
The important thing to note: If you’re worried about how many months mortgage arrears before repossession of your home; Don’t ignore the problem.
By ignoring the problem it will not go away. So you need to take action, otherwise, despite the fact that lenders do not want to repossess your home, they will if they are pushed to do so. If your arrears to to a stage whereby you leave them no alternative, they will repossess you.