Repossession is on the increase during this time of recession. So this guide is intended to help you to understand the stages of repossession, why it takes place, and the things that you can do if you are faced with this issue.
If you are paying a mortgage on your house, and have fallen into arrears, your mortgage lender has the right to start repossession proceedings. The terms of your mortgage contract will state this. Normally a lender has the right to take action after two months of arrears, but most lending organizations will work with you to try to clear the arrears and thereby avoid legal action against you. The best thing is to keep talking to your lending organization and update them on your current situation.
In the first instance, you will be receiving letters from your lending organization’s debt collections department, as well as telephone calls to try to collect the missed payments. As stated above, always keep your lending organization informed of your circumstances, and attempt to come to a mutual agreement to clear the debt over time. If your arrears remain unpaid for four to six months or more, you account will be referred for legal action to a firm of solicitors. They will probably write to you demanding that you pay the arrears in full, warning you that you face repossession of your property if the arrears are not cleared, and the account brought up to date.
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