If your lender or landlord is threatening to repossess your home, then get some professional advice. There are dozens of debt help agencies available, and Citizens Advice has trained counsellors, who will help you decide what to do next. Repossession is one way for lenders to get back the money you owe them, if you are in arrears on your mortgage. However, repossession involves lenders in going to court and selling your property before they can get their money, so lenders usually prefer to strike a deal with the person who is in arrears.

Depending on the mortgage you have, how many payments you have missed and the reasons why you are in arrears, you may be able to negotiate a way out of your financial problems without going to court. Most lenders are understanding if you have been ill and have been unable to work, or if you have been made redundant. As long as you can make a credible offer to repay some of the arrears, most lenders will be happy that they will get the money they are owed.

Always respond to your lenders contact with you

If you do miss a couple of mortgage payments, your lender will write to you or telephone you about them. Always respond to these contacts, otherwise your lender may go straight to the repossession process. The letters and phone calls give you a chance to explain why you are in arrears, and to set out a plan for reducing those arrears. If the lender isn't happy with your plan, you will get another letter and then a solicitor's letter. Always respond to these, with a plan for sorting things out.

If your lender decides to go for a repossession order, there are still several steps the lender needs to undertake before getting hold of your home. This involves making a claim which states what you owe, and the reasons for seeking repossession. You will get a copy of this paperwork, with the chance to respond. This will accompany your summons to court, which will also include advice on other steps you should take. Just as with your lender's paperwork, never ignore a court summons or a judgement can be entered against you without your having the chance to put your case.

Debt Advisors Can Help

If you haven't yet taken advice, you should do so when you get the summons. There are many debt advisers who can help with repossession cases, and who will tell you what you need to do to try to avoid losing your home. Repossession cases are heard in private, with just the judge, you and solicitors present. You will get the chance to present the reasons for your arrears, and how you plan to resolve the situation.

At this point, the judge can choose to adjourn the case if more evidence is needed; to dismiss it if the judge thinks that the lender has no case; to grant a repossession order which gives the lender the right to repossess your home; or to grant a suspended repossession order, which means that as long as you stick to the payment arrangement you can keep your home. However, if you default, the lender can get a repossession order more quickly.

A Quick Remortgage Could Save Your Home

If you get a suspended repossession order, one option is to remortgage your home and pay off the debt to your old lender, so that you will no longer be under threat of repossession. There are several lenders who specialise in these cases, so this might be a good option to investigate.

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