Repossession

If you are the owner of your home, and you find yourself in financial difficulty, one of the most serious consequences you may be facing is repossession of your home from the mortgage lender. Unfortunately, even before the current economic crisis, there was an increase of fifty percent in repossessions from 2007 to 2008, with almost eight thousand repossession orders made. In 2009, this figure could rocket, with some sources predicting seventy five thousand repossessions for 2009.

If you feel you may have problems in paying your mortgage, the best advice is to take action early, even if you're not sure. Visiting a specialist will help you work out how likely you are to run into immediate difficulties before they happen. Specialist solicitors often have expertise in knowing ways of avoiding your lender taking any action in the first place, which might involve contacting them to negotiate payment terms for you, or using a specialist mortgage and debt company. If you receive a letter from your mortgage lender requesting arrears, and you cannot pay, you should seek advice immediately. The lender can very quickly apply for a court summons, which you will need to respond to. The court will hear evidence from both sides, and will not always necessarily find in the lender's favour - particularly given the current economic climate. Compromises might include repayment plans for arrears, or allowing you time to sell the property yourself before repossession. A solicitor will be well placed to advise you on the best action to take and how to present your case, and mitigate the effects of legal action.