stop a suspended repossession Archives

With the recent adjustments in house pricing and the economy, many people have been faced with the possibility of repossession in the last few years. This owes to the inability to keep up repayments on property mortgage. With the rising cost of energy bills and many people struggling with increased mortgage payments, it has resorted to many homeowners falling behind with their mortgage payments. If you find yourself in this position, the mortgage companies will try and come to alternative arrangements before resorting to repossession but this doesn’t make the situation any easier as it can be incredibly stressful and cause many problems in other aspects of your life.

When facing financial problems, it is important to communicate with your mortgage lender immediately. Early communication and making them aware of your situation can help to avert a possibility of losing your home, through reaching a payment agreement. Several factors can lead to financial problems other than house prices or changes in the economy. The two main factors among them, being a broken up relationship or loss of a job leading to repossession. A sudden change of some factors can mean that what was once manageable suddenly becomes unaffordable.

When people take out their first mortgage, they often tend to opt for a fixed rate deal within a limited span of time. The deal serves as security for a short time span. However, once it has elapsed you will find yourself faced with a large rise in the monthly mortgage payment, specifically if the base rate increases. Luckily, this isn’t a problem lately as Standard Variable Rates have seen a continuous reduction due to the drop in the Bank of England base rate.

There are varied options to try when avoiding repossession or at least avoiding the various negative consequences of repossession. This can be done through re-mortgaging or even considering a quick house sale which will allow you to sell your home quickly and possibly downsize to save money. You can communicate to your bank or mortgage lender about deals on re-mortgaging or other options that may be available to you. You will be expected to provide financial details in order to help negotiate repayments. If you cannot come to terms with your mortgage provider or they refuse any offers you have put forward, you will be in a better position legally as long as you proof a communicated urge to effectively resolve the situation while in court.

Lastly, it is also important to get professional advice. There are lots of companies such as Citizens Advice or National Debt line that offer free information and advice for anyone struggling financially or on the verge of losing their home. Nevertheless, you can as well speak to a solicitor who can help to iron out a repayment plan or settlement as well as help negotiate with your bank or mortgage provider. You will have to incur some legal fees involved with instructing a solicitor to help however.

Suspended Repossession

A suspended repossession order is a legal arrangement made between you and your lender following a repossession court hearing. This means that a repossession order on the property has been suspended (you are not ordered to leave your house – yet). This suspension will usually have some strict conditions attached to it. The two most common conditions are:

You agree to pay in full your monthly mortgage payments, plus an additional amount to pay towards the arrears you have incurred. Be careful not to over-commit yourself to any unmanageable repayments.
You agree to sell the property within a certain time scale and replay the mortgage in full. This will only usually be accepted if you can show you have already found a buyer for the property and are just waiting for the sale to ‘complete’.

Caution: A judge will give you a suspended repossession, instead of a normal repossession order if they believe the mortgage arrears issue can be resolved. If you have a suspended repossession order on your property it is important to stick to the terms of the order as failure to do so may result in you being evicted from your home without your lender requiring another repossession court hearing.

Suspended Repossession – The Terms & Conditions

If a judge has made a suspended possession order, you are permitted to stay in your property for as long as you keep to the conditions detailed. The conditions will be explained in the court order, but if they are unclear you should seek professional advice.

Typically, the order will say you have to pay a certain amount off your arrears alongside your usual mortgage payment. Most mortgage lenders will ask for the arrears to be paid off within a certain time frame, e.g. 3 years – but the time scale will ultimately be decided by the judge based on your financial circumstances, and in some cases the arrears may be spread across the remaining mortgage term (though uncommon).

If you think you are likely to have problems sticking to the conditions of a suspended possession order, you should contact your lender and/or get advice immediately. Never put off dealing with the situation. Such an action may make your lender (or other creditor) to evict you very easily if you either fail to keep to your original agreement or fail to agree to an alternative.

Further / On-Going Financial Difficulties

Upon a suspended repossession, some people find a way to solve their mortgage problems. Nevertheless, this is not the case for everyone. Majority of people that receive a suspended repossession order are often struggling to keep up with their current mortgage and other financial debts. When they are required to pay even more to their mortgage lender to bring to bar their mortgage arrears, it results in even more strain on their budget.

The solution to such is not an eviction if you miss just one mortgage payment. If you do receive a letter from the bailiffs, seek advice immediately. There may still be time to stop the eviction. We understand that at this highly stressful time you may feel you have no way out; however, if you contact us we may be able to see you through it. You can sell your house quickly for cash, so you can pay off your mortgage in full and any other secured debts and the remaining cash will go straight to your account. We can even arrange for you to rent your house with us either in the short term while you find your feet, or the long term if you would prefer not to move.

What Next After a Suspended Repossession?

If you have been issued with a suspended repossession order, now is the time to act in order to save your home from being repossessed. Even if the situation seems hopeless, we may be able to help you find a solution. For example, if you have lost your job, it may be possible to get the conditions of the order changed to make the repayments more manageable. If you want to change the conditions of an order, you will need to apply to the court and may have to pay a fee. However, if you are claiming benefits or have a low income you may be able to get help with these costs.

If you would like to have the suspended repossession cancelled and started freshly, then the simplest solution we offer is a quick cash sale. This involves us making you an offer typically in less than 24 hours, and we can transfer the cash as soon as the sale completes. It is a fast, reliable, and hassle free way to sell your house. We don’t even need to come and view your property; we simply base our offer in the trade value of your house. What’s more is that we will pay all your legal fees, and because the sale is direct you don’t have any estate agents fees, which in total will save the average home mover about five thousand pounds.