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Has anyone ever or know anyone who ever has had their house reposessed?

11 replies

citronella · 15/12/2008 13:58

I might have to face that possibility in the next few months and I was wondering whether anyone who had been through that had ever managed to get another mortgage and also what procedures to expect.
TIA

OP posts:
Seabright · 15/12/2008 20:42

I worked for a mortgage lender a few years ago dealing with debt recovery. I can honestly say that virtually the only cases where we had to repossess where the "won't pay" rather than the "can't pay", or cases were borrowers stuck their heads in the sand and refused to contact us to try and sort out the problems.

I can't speak for all lenders, but repossession is a really time consuming (and therefore expensive in terms of staff time)and expensive, so is not something done lightly, so the first thing I'd say is that if you haven't done so already, contact your lender.

It's hard to advise without knowing your situation, but is there a specific reason why you've fallen behind with payments, and is that problem something which is sortable, given time (ie lost job, will be sorted when new job found)? If so, explain, ask for time.

If you have equity in the property and can continue to make payments but can't pay the arrears, ask if the arrears can be added to the main loan. It'll mean higher interest payments, but you'll be back on track.

If you can, make an offer of gradual repayment of arrears. Even if it's only paying an additional £25 per month (or whatever), make the offer. If they refuse, go to the Court hearing and make the offer again there - it's more likely they'll accept than look unhelpful in from of a judge.

You probably will be able to get another mortgage following repossession, but it will be really hard at the moment (lenders only want really good borrowers) and you'll probably be stuck with the slightly dodgy lenders who advertise on daytime TV and charge much higher rates. Your credit record will also be affected, so credit cards etc will be harder to come by and charged at a much higher rate.

If the lender won't listen to your offers, try the CAB, they can contact then lender direct - they often take notice of the CAB when they won't accept an offer from a borrower.

citronella · 16/12/2008 14:27

I have just picked this up again and this is very helpful Seabright.
I am not actually in arrears yet but may have difficulty in February and March and then may or may not be able to pay again. Also the house is on the market but of course not shifting at the moment.
Thank you for your comments.

OP posts:
pagwatch · 16/12/2008 14:32

I was evicted and the house repossessed when I was about 15.

My father had been too ashamed to admit that we were struggling financially so didn't talk to anyone.

Once we were out the Bank sold the house REALLY cheaply so we lost everything. They simply wanted to recover their sum and had no interest in any money above that.

I would recommend that you do anything you can to avoid the house being sold from under you. Speak to your ender or get some seperate financial advice from CAB.

citronella · 16/12/2008 15:29

Thank you pagwatch. That must have been really upsetting for you. I agree the best thing would be to keep communication lines open with the lender. I have already moved out so there will be no trauma of being forcibly removed. I just wondered how drawn out the process was and if it really was a last resort on the part of the lender so I know what to expect if it does come to that.

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Fizzylemonade · 17/12/2008 20:26

Going at this from a slightly different angle, you said that your house is on the market so does your estate agent know what your lowest acceptable figure is?

Most people have their property on for more than they will accept, say yours is on for £250 but you would take £220 happily, then let your estate agent know. That way any potential buyers looking at the £230 mark will be told that you would accept £220.

Also personally I would rather fall behind with everything else rather than the mortgage. If you can keep up with some payment toward the mortgage and I will also say council tax (as they can take money directly from your salary) let everything else slide but contact all your creditors to let them know the situation.

Go to CAB to get some solid advice.

I agree with Seabright, I used to work for council tax and did debt collection, we always made a difference for those who can't pay over those who won't pay.

citronella · 18/12/2008 15:51

Yes they do know Fizzy. I agree with you on paying a little bit is better than nothing and the mortgage taking priority but without going into to much detail here it is just confined to a mortgage issue (I don't live there anymore).

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SixSpotBurNativity · 18/12/2008 15:53

No helpful advice I'm afraid, but .

citronella · 18/12/2008 15:57

Hello,

don't be too it still might not happen and I did prepare myself for the possibility.

Thanks.

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goldFAQinsenceandmyrrh · 18/12/2008 16:00

no advise citronella - but for you - my home is also going to be repossessed (well it's all in exH's name, but I'm the one living here still so it's me that has to move).

As a slight hi-jack does anyone know how long it takes from the first letter from the bank demanding the full amount outstanding to it going to court???

citronella · 18/12/2008 16:17

Sorry to hear that FAQ . Have you got somewhere to go lined up?

OP posts:
goldFAQinsenceandmyrrh · 18/12/2008 16:18

not yet - going to start properly after Christmas, by then I will at least have the deposit ready, and hoping by mid-Feb I'll have been able to move (as I'l have got the deposit and first months rent togheter).

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