House repossession is beneficial only to two groups of people, aside from the lenders, first-time home buyers and investors. To you, it can be devastating and put a strong negative mark on your financial reports and borrowing future. More and more foreclosures and repossessions are happening every day and this not only impacts you, but your community.
One of the most important things to know before trying to stop a home repossession from happening to you is the process the lender and banks go through to repossess a home. The first step the bank will take when you become two months or more behind on your mortgage. As outlined by house repossession law, they have to then attempt to contact you and advise you of the impending repossession possibility. At this point in the house repossessions process you can make payments arrangements and catch up the balance with minimal consequences. House repossession law requires lenders to stay in-house for a certain amount of time to allow you time to respond to the default before a repossession process begins.
The next step in the process is to send your account to their legal counsel to contact you about the possible repossession of the home if you do not make an attempt to pay the arrears. You will likely be given a set amount of time to respond to this as well. If you don’t respond, the lawyers will file a repossession order with the court and the court will send you a summons to attend the hearing. If you do not show up to the hearing, a default win will be handed to the lender and they will be granted ownership and rights to the property. If you attend the hearing, you have the option to plead your case, pay the amount or talk with the judge about a repayment plan to stay in your home. The judge will make the decision and if you fail to comply, possession of the house automatically go to the lender with no additional hearings.
You can plead your case and a judge can find in your favor and drop the repossession proceedings or you can offer to start the monthly payments again and offer a repayment plan for the arrears that have incurred. As with many legal issues, the more you know about the house repossession process, the more you are able to do to stop house repossession in the first place. Your home is your haven and if you are having financial difficulties, takes the time to talk with your lender before this process starts and work to save your home for you and your family.
Tags: Bank Charges, Finance, PPI, Refunds